Business

5 things to know before the stock market opens on Thursday, July 21


Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 20, 2022.

Brendan Mcdermid | Reuters

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

1. Stock slippage

Futures contract fell on the Dow, S&P 500 and Nasdaq on Thursday morning. The three major indexes are having a positive Wednesday, with the tech-centric Nasdaq leading the week in earnings reports from several sectors. Many big-name companies are releasing results on Thursday, including Snap and Mattel after the bell closed. Investors are also looking at earnings reports from major airlines United and American. (Read more about that below.)

2. Tesla’s Profits Are Squeezed

A Tesla dealership is seen in West Drayton, just outside London, Britain, February 7, 2018.

Hannah McKay | Reuters

Electric vehicle leader Tesla posted Earnings per share were higher than expected Fourth, even its auto industry profit margin fell to 27.9% in the second quarter from 32.9% in the previous period. Like other automakers, Tesla has faced rising costs for materials and supply chain constraints such as semiconductor shortages. Covid restrictions in China restrict production from the company’s factory in Shanghai. New factories in Austin, Texas and Berlin, which the CEO Elon Musk formerly known as the “giant smelter,” also eats into Tesla’s profits.

3. Airlines profit from strong demand

A United Airlines plane takes off on an American Airlines plane on the tarmac at Los Angeles International Airport (LAX) on October 1, 2020 in Los Angeles, California.

Mario Tama | beautiful pictures

Strong demand for travel, even in the face of inflation and expensive fares, has increased American Airlines‘quarterly results, mostly in line with analyst expectations. The company said Thursday it also expects to post earnings for the current period. United Airlines on Wednesday reported its first profit without government aid since the pandemic began, but the carrier’s results have come. lower than Wall Street’s expectations. CEO Scott Kirby cites three major challenges facing the company over the next 18 months: “Operating challenges across the industry limit system capacity, record fuel prices, and growing capacity rise of the global recession.” Shares of both airlines fell ahead of Thursday’s bell.

4. Microsoft slows down hiring

Jeenah Moon | Getty Images News | beautiful pictures

add Microsoft to the list of tech giants that are getting more and more cautious when it comes to hiring and spending. The company said it will scale up on adding employees as inflation weighs on consumers and some see the possibility of a recession. A company spokesperson told CNBC: “As Microsoft gets ready for the new financial year, they are making sure the right resources are aligned for the right opportunity. Google’s Parents Alphabet and parents Facebook Meta are also slowing their hiring rate. AppleIt is also said to be aimed at reducing spending and recruiting for certain teams.

5. Gasoline price peak?

Gasoline prices are fallingand there is a high probability that the US peaked when the average price hit $5.01 in June. It could be due to two main factors: lower demand as people cut back on road travel. and continued working from home, and growth in supply. Some drivers are currently paying less than $4 a gallon, though it will take some time to bring the national average down to that point. It was at $4,440 per gallon on Thursday, and there are still many variables that could lead to another rally, including the possibility of a hurricane disrupting production in the Gulf of Mexico.

– CNBC’s Jesse Pound, Lora Kolodny, Leslie Josephs, Jordan Novet and Patti Domm contributed to this report.

Register now for the CNBC Investment Club to track every move in Jim Cramer’s stock. Follow broader market action like a pro on CNBC Pro.



Source link

news7g

News7g: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button