5 things to know before the stock market opens on Friday, July 22


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

1. Another mixed stock morning

Traders work on the floor of the New York Stock Exchange (NYSE), July 21, 2022.

Brendan McDermid | Reuters

The three major US stock indexes looked like they were in for some erratic trading on Friday morning after a relatively strong close on Thursday. The US dollar, which had strengthened and weighed on growth-oriented tech stocks, cooled slightly after the European Central Bank raised rates for the first time in more than a decade in an attempt to counter inflation. This particularly helped the high-tech Nasdaq, which closed up 1.36% on Thursday. But then after the call, Snap’s favorite popped up on social media, and well…see below.

2. Social media frenzy

Evan Spiegel, co-founder and CEO of Snap Inc., speaks at the Google Pixel Fall Launch virtual event in New York on Tuesday, October 19, 2021.

Michael Nagle | Bloomberg | Getty Images

It was cruel. Snap reported weaker-than-expected results and a slowdown in earnings, but the real blow came in the company’s warning that it would not issue guidance for the third quarter because “predictability remains incredibly difficult.” Snap, joining other tech companies, also said it plans to slow down its recruitment rate. As of Thursday’s close, Snap’s stock has already fallen nearly two-thirds this year. The company’s disastrous quarterly report sent chills on other social media outlets, such as parent company Facebook Meta and Pinterest, after hours Thursday. And Twitter posted results Friday morning, including a net income loss that fell short of Wall Street’s expectations.

3. Airlines dial back

Passengers with a child use a Delta Air Lines check-in kiosk at Atlanta’s Hartsfield-Jackson International Airport ahead of the Fourth of July holiday in Atlanta, Georgia on July 1, 2022.

Elijah Nuvlage | Reuters

Air travel is picking up again. Covid restrictions have been largely relaxed. And the airlines are cashing in on the profits. The three largest U.S. air carriers – United, American and Delta – have reported quarterly earnings for the most recent period, and each has expressed optimism about demand for the rest of the summer. But the surge in travel has caused headaches everywhere: higher fares, longer delays, more cancellations, staff shortages, and so on. Due to high costs, fares and demand, airlines that received billions of dollars in federal support during the pandemic are cutting back on their flight increase targets. “The more airlines limit capacity, the higher the airfare they can charge,” said Henry Harteveldt, founder of Atmosphere Research Group and former airline executive, Leslie Josephs of CNBC. “They are not going to receive another financial aid,” he added. “They squandered a lot of their goodwill.”

4. Energy aid in Germany

Uniper is in talks with the German government about possible financial assistance.

Photo Alliance | Photo Alliance | Getty Images

The German government on Friday agreed to a $15.24 billion bailout for energy giant Uniper. The company’s difficulties are related to the Russian invasion of Ukraine and the subsequent energy crisis. Uniper, which is controlled by a Finnish company, is Germany’s largest importer of Russian gas. Earlier this month, Uniper turned to the government for help after it warned of rising electricity bills. The German government acquires a 30% stake in the company.

5. How far have we come

President Joe Biden, who tested positive for Covid-19 this morning, tweeted: “Guys, I’m doing great. Thank you for your concern. to express my regret that I missed our event today.”

Credit: White House

President Joe Biden has tested positive for the coronavirus, the White House said Thursday. The news made headlines everywhere. Biden is 79 years old and therefore considered at higher risk of a more serious fight against Covid. However, his symptoms were “very mild” and he continued to work, albeit in isolation. He was vaccinated and revaccinated, and he was taking Pfizer Paxlovid antiviral treatment. It wasn’t long before development became just another piece of news. The markets have largely ignored this. Covid, which became a pandemic more than two years ago, continues to pose a health and economic threat. Tens of thousands of people are infected every day in the United States, forcing many to stay at home. And still every day, thousands are hospitalized and hundreds die. But if the otherwise muted response to the president’s infection is any indication, then it’s clearer than ever that Americans — and markets — are pretty much eager to move on, even if the virus isn’t.

– Samantha Subin, Jonathan Vanian, Ashley Caputh, Leslie Josephs, Kevin Breuninger and Katrina Bishop of CNBC contributed to this report.

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