5 things to know before the stock market opens on Friday, July 1

Here are the most important news items investors need to start their trading day:

1. Second half begins

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 30, 2022.

Brendan Mcdermid | Reuters

The market is looking to recover from the worst first half of the year for stocks in 52 years. But inflation, main culprit behind that weak performance in the stock market and other sectors, does not appear to have fallen by any meaningful proportion. Indeed, the future came down on friday morning, before the long weekend, as investors prepare for a potential earnings season. The US stock market will be closed on Monday, July 4.

2. Inflation increases in the euro area

European Central Bank President Christine Lagarde attends a plenary debate at the European Parliament on February 14, 2022 in Strasbourg, eastern France.

Frederick Florin | Afp | beautiful pictures

Rising prices are also affecting other major economies. The European Central Bank said on Friday inflation for the whole year increased by 8.6% in June. The ECB is expected to raise interest rates for the first time in 11 years later this month and is expected to continue with another hike in September. Earlier this week, ECB President Christine Lagarde said the central bank The central bank will move faster if inflation does not improve, although she still expects growth. The ECB rate has been negative since 2014.

3. Treasury coupon

Traders work on the floor of the New York Stock Exchange on June 16, 2022.

Xinhua News Agency | Xinhua News Agency | beautiful pictures

10-year US Treasury yield fell to the lowest level in nearly a month in early Friday morning trading, before recovering somewhat. Investors are weighing the possibility of a recession. Bond traders will look to more economic data on Friday morning, with ISM manufacturing and light vehicle sales data for June, along with construction spending for May, expected. ​will be announced at 10 a.m. ET.

4. Meta warning

Product Manager of Mother Facebook Meta warned employees in a memo that they were facing “serious times” and that the company will have to “prioritize more ruthlessly” to face a difficult environment for its advertising business. “We needed to function perfectly in a slower-growth environment where teams shouldn’t expect large amounts of new engineers and budgets,” writes CEO Chris Cox.

5. Kohl’s closes sales negotiations

The Kohl’s logo is displayed on the exterior of a Kohl’s store on January 24, 2022 in San Rafael, California.

Justin Sullivan | beautiful pictures

Retailer’s shares Kohl’s dropped sharply on Friday morning after the company confirmed CNBC Thursday Night News that it has terminated sales negotiations with Franchise group, which owns The Vitamin Shoppe, among other brands. Shares fell below $30 during pre-market trading. Franchise Group submitted a revised offer of $53 per share after previously offering around $60 per share. Earlier this year, Kohl’s rejected a $64 a share offer from a Starboard-backed contractor. Kohl’s also downgraded its outlook as the retailer sees consumer spending dwindling.

– Fred Imbert, Silvia Amaro, Sam Meredith, Jonathan Vanian and Lauren Thomas of CNBC contributed to this report.

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