5 things to know before the stock market opens on Friday

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

1. Stock futures drop after jobs report

People walk past the New York Stock Exchange (NYSE) on Wall Street on July 12, 2022 in New York City.

Angela Weiss | AFP | Getty Images

Stock futures fell Friday morning after a much stronger-than-expected nonfarm payrolls report in July, signaling investors that the Federal Reserve should remain in rate-hike mode. Futures developments were relatively subdued prior to the release of labor market data. Thursday, Wall Street posted a mixed session. The Dow Jones Industrial Average fell 0.26%, its third negative day in four, while the S&P 500 lost just 0.08% and remains positive since the start of the week. The tech-heavy Nasdaq Composite, meanwhile, rose 0.41% to close at its highest level since May 4.

2. The United States added 528,000 jobs in July

A man walks past a “We Are Hiring” sign in New York on July 8, 2022.

Angela Weiss | AFP | Getty Images

The United States added 528,000 jobs in July, the Bureau of Labor Statistics said Friday, far exceeding the Dow Jones estimate of 258,000 and contradicting other recent data suggesting the economic recovery is slowing. The unemployment rate fell to 3.5%, while economists expected it to remain stable at 3.6%. Wages rose 0.5% month over month, beating estimates of a 0.3% gain. The sector with the most job gains in July was leisure and hospitality, with payrolls up 96,000.

3. China ends cooperation with US on military and climate issues

China said on Friday it was ending cooperation with the United States on issues including climate change and military relations after House Speaker Nancy Pelosi visited Taiwan earlier this week, the democratic island that Beijing claims as its own territory. China also imposed sanctions on Pelosi personally for the visit, further stoking tensions between the world’s two largest economies. US Secretary of State Antony Blinken criticized China for launching missiles during military exercises near Taiwan this week, saying the actions represented an “extreme, disproportionate and incremental” response, according to Reuters.

4. DoorDash appears and more income

An AFP journalist consults the DoorDash meal delivery application on her smartphone, February 27, 2020 in Washington.

Eric Baradat | AFP | Getty Images

DoorDash shares jumped more than 9% in premarket trading on Friday after the food delivery company’s second-quarter revenue beat expectations and orders delivered during the period hit a high. record 426 million. However, DoorDash reported a bigger-than-expected loss of 72 cents a share and warned it anticipated a “softer consumer spending environment” in the third and fourth quarters.

In more revenue news:

  • Expedia Group reported strong earnings and revenue for the quarter ended June 30, pushing its shares up more than 4%, and CEO Peter Kern said ‘travel demand remained strong’ despite flight disruptions and economic uncertainty.
  • Ride-sharing company Lyft reported better-than-expected adjusted earnings, based on estimates compiled by FactSet, helping to lift shares 7.5% in premarket trading.
  • Beyond Meat cut its full-year sales forecast and announced plans to lay off about 4% of its workforce, while announcing disappointing second-quarter results. CNBC’s Amelia Lucas has a full recap here.

5. Democrats Reportedly Adding a Redemption Tax to the ‘Inflation Reduction Act’

Senator Kyrsten Sinema, Democrat of Arizona, listens during a press conference at the Dirksen Senate Office Building in Washington, DC, U.S., Wednesday, July 28, 2021.

Stefani Reynolds | Bloomberg | Getty Images

Democrats in the Senate appear to have enough support to push forward the so-called Cut Inflation Act, and a 1% tax on stock buybacks would now be part of the sweeping legislative proposal, Ylan Mui reported. from CNBC on Friday morning. However, as a condition of gaining support from Sen. Kyrsten Sinema, D-Arizona, the bill no longer includes a deferred interest tax amendment, which allows hedge funds and private equity investors to pay a lower rate. Read a full article on Sinema’s support for the legislation here.

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