A trader works on the floor of the New York Stock Exchange (NYSE) in New York City on July 13, 2022.
Brendan McDermid | Reuters
Here’s the main news that investors need to start their trading day.
Stocks point to higher open
Stock futures rose in pre-market trading as investors digested the latest round of banking earnings. Markets appear to be returning after the major indices ended down Thursday despite a late rally. However, traders are still wary of the coming wave of earnings reports as consumers continue to spend big bucks and employment remains strong despite rising prices. Investors will also keep an eye on the June retail sales report due at 8:30 ET and preliminary data for consumer sentiment in July at.
2. Wells Fargo and Citigroup report earnings
A Wells Fargo logo is seen at SIBOS ‘banking and finance conference in Toronto
Chris Helgren | Reuters
Another day, another set of big bank revenues. On Friday, Wells Fargo, which reiterated its major rival JPMorgan Chase, said its profits were hit in the second quarter as it set aside more money to mitigate the blow from bad loans. The bank’s revenue also fell below analysts’ expectations. Wells Fargo shares fell slightly in pre-market trading. Citigroup is due to report later Friday morning. Bank of America and Goldman Sachs are on deck to report before Monday.
3. China’s GDP underperforms
Rush hour at a crossroads in Beijing, China, on June 16, 2022. China’s capital had been working to control a fresh Covid cluster after dozens of people affiliated with a local nightclub tested positive for the virus. The country, unlike the rest of the world, has pursued a strict zero-Covid policy to limit outbreaks.
Kevin Frayer | Getty Images News | Getty pictures
China’s GDP growth in the second quarter grew only slightly compared to the period the year before, reflecting the country’s ongoing struggles with shutdowns aimed at limiting the spread of Covid-19. GDP rose 0.4%, below analysts’ estimate of 1%. Growth in industrial production in China for June also missed expectations, but retail sales grew. The country’s statistics bureau warned that the Chinese economy could suffer from “the risk of stagflation in the world economy.”
4. Pinterest shares are rising after reports of Elliott’s share
Pedestrians pass in front of the Pinterest signs displayed outside the New York Stock Exchange.
Michael Nagle | Bloomberg | Getty pictures
Pinterest’s stock rose in off-time trading after The Wall Street Journal reported that activist Elliott Management had taken a stake of more than 9% in the social media company. Shares of Pinterest have fallen 75% over the past 12 months as its global monthly active users have fallen. This week’s news comes after a shake-up last month at the top of Pinterest, when co-founder Ben Silbermann stepped down as CEO and was replaced by former Google chief trading officer Bill Ready.
5. Manchin rejects Dems’ tax and climate proposal
US Senator Joe Manchin (D-WV) goes to the Senate floor of the US Capitol in Washington on June 7, 2022.
Jonathan Ernst | Reuters
Late. West Virginia Conservative Joe Manchin struck a crippling blow at his party’s latest attempt to pass a law package that includes long-negotiated climate policies and regulations aimed at closing tax loopholes for the wealthy and businesses, according to NBC News. Democrats have a narrow majority in the 50-50 Senate by virtue of Vice President Kamala Harris’ draw. Majority leader Chuck Schumer had been in talks with Manchin over a package that would also prevent large insurance premium increases under Obamacare before a September deadline. As things stand now, Manchin would only support a bill with the health regulations. Democrats risk losing their congressional majority during the fall midterm elections as voters get frustrated by soaring inflation.
– CNBC’s Sarah Min, Hugh Son, Evelyn Cheng and Jonathan Vanian contributed to this report.
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