Here are five things you need to know for Friday, August 5:
1. — Stock futures mixed ahead of July jobs report
U.S. stock index futures were mixed on Friday ahead of a key economic report that investors hope will provide more clarity on the direction of the economy and whether the Federal Reserve’s inflation-fighting rate hikes will s prove to be effective.
Dow Jones Industrial Average futures were flat ahead of July’s nonfarm payrolls report, which is expected to show further job growth last month, albeit at a more subdued pace. S&P 500 futures were also flat, as were contracts on the technology-focused Nasdaq-100.
In bond markets, the yield on the benchmark 10-year Treasury note climbed to 2.695% from 2.674% on Thursday. Yields and prices move in opposite directions.
A key focus for investors ahead of the open is July’s nonfarm payrolls report, which they hope will provide further clues as to how the labor market is holding up to recent anti-corruption rate hikes. Fed inflation and the corresponding slowdown in growth.
Analysts polled by FactSet expect 250,000 new jobs to have been added to the economy last month after June’s gain of 372,000.
Even if economic growth slows, a strong labor market could prevent the economy from entering a recession. Employment typically falls during recessions as companies lay off workers and stop hiring until the outlook improves.
Companies including Walmart (WMT) – Get the report from Walmart Inc.Amazon (AMZN) – Get the report from Amazon.com Inc.You’re here (TSLA) – Get the report from Tesla Inc. and Robinhood (HOOD) – Get the report from Robinhood Markets Inc. have already forecast layoffs, and economists expect to see more job losses at companies in construction, technology, retail and finance, among others.
Inflation continued to soar in June, with the consumer price index jumping 9.1%. But economists expect inflation to have peaked and job growth now also appears to have peaked.
Overseas, the pancontinental Stoxx Europe 600 remained stable. In Asia, the main indices closed with gains. Japan’s Nikkei 225 gained 0.9%, South Korea’s Kospi rose 0.7% and China’s Shanghai Composite gained 1.2%.
2. — Pelosi and his family hit with sanctions for their visit to Taiwan
China on Friday imposed sanctions on U.S. House of Representatives Speaker Nancy Pelosi and her immediate family in response to what China’s Foreign Ministry called a “flagrant provocation.”
Pelosi traveled to Taiwan earlier this week in what was seen as a highly controversial move. China considers the island part of its territory, but Taiwan has been governed independently since 1949, according to the Council on Foreign Relations.
“In defiance of China’s grave concerns and strong opposition, Speaker of the United States House of Representatives Nancy Pelosi has insisted on visiting the Chinese region of Taiwan. This constitutes gross interference in China’s internal affairs.
It seriously undermines China’s sovereignty and territorial integrity, seriously tramples the one-China principle, and seriously threatens peace and stability in the Taiwan Strait,” a ministry spokesperson said in a statement. a statement.
“In response to Pelosi’s blatant provocation, China decides to adopt sanctions against Pelosi and his immediate family members in accordance with the relevant laws of the People’s Republic of China,” the spokesperson said.
Political analysts have warned that Pelosi’s decision to visit Taiwan could escalate US-China tensions. Pelosi is the highest-ranking US official to visit the island in 25 years.
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Pelosi said on Friday the United States would continue to engage with Taiwan despite criticism from China, as Beijing surrounded the island with rocket and ballistic missile fire following its visit there.
3. — Virgin Galactic shares fall on further commercial flight delays
Galactic Virgo (SPCE) – Get the report from Virgin Galactic Holdings, Inc. Shares fell nearly 10% in premarket trading on Friday after the space tourism company announced it had postponed the start of commercial flights for another three months, citing delays in refurbishment work of his carrier aircraft.
Virgin Galactic has announced that commercial service is being pushed back to the second quarter of 2023, the latest setback for the start of its space tourism business. The company previously pushed back the date for the fourth quarter of this year to the first quarter of next year.
The company currently has a carrier aircraft, or “mothership,” called VMS Eve, which is about 14 years old and undergoing a lengthy refurbishment. The jet mothership plays a key role in Virgin Galactic flights by carrying the company’s spacecraft up to around 50,000 feet for launch.
Virgin Galactic announced an adjusted EBITDA loss of $93 million in the second quarter, higher than the loss of $77 million in the previous quarter. The company has $1.1 billion in cash. He also said he plans to sell up to $300 million of common stock, which the company says is intended to add “financial flexibility going forward.”
4. — Warner Bros. Discovery launches ad-supported streaming service
Discovery of Warner Bros. (WBD) – Get the Warner Bros. report. Discovery Inc. Shares were down more than 12% in premarket trading on Friday after the entertainment giant announced it was launching a free, ad-supported streaming service, the latest effort by a streaming giant to reach an audience wider as competition for users intensifies.
The company, the result of Discovery’s merger with AT&T’s WarnerMedia earlier this year, will focus first on a previously announced plan to combine its two main streaming services, HBO Max and Discovery+, executives said during a call with investors.
The combined subscription platform will roll out starting next summer in the United States, said JB Perrette, the company’s CEO for global streaming.
Once this service is launched, the company sees the potential for a free, ad-supported offering. The free service would target cost-conscious consumers and serve as an entry point to the company’s premium service, according to the company.
The announcement came as Warner Bros. Discovery announced its first quarterly results as a combined entity, dragging a loss on merger-related charges and warning investors that a slowdown in publicity had led it to cut its outlook for this year and next. .
Shares of Warner Bros. Discovery fell 10.18% to $15.70 in premarket trading.
5. — AMC Entertainment Issues Special “Ape” Dividend; Fall in shares
AMC Entertainment (CMA) – Get AMC Entertainment Holdings Inc. Class A Report. Shares were down more than 10% in premarket trading on Friday after the stock meme mascot announced a special dividend in the form of “Ape” preferred stock.
AMC has declared that it will issue a special dividend of one AMC preferred stock unit for each Class A common stock of AMC with a par value of $0.01 per share, outstanding at the close of business. offices on August 15. The special dividend is expected to be paid at the close of business on August 19.
AMC has applied to list its AMC Preferred Stock Units on the New York Stock Exchange under the symbol “APE”, beginning August 22. as “monkeys” or “monkey nation”.
The dividend marks the latest move in a fight over equity issues. AMC turned to the special dividend after it was unable to get shareholder approval to let it issue more common stock, according to the Wall Street Journal.
“This new AMC Preferred Equity gives AMC currency that can be used in the future to strengthen our balance sheet, including paying down debt or raising new capital,” AMC CEO Adam Aron said in a statement. communicated. “As a result, this significantly reduces any short-term survival risk for AMC as we continue to navigate our way through this pandemic.”
The company, which issued an “I own AMC” NFT in January, will also issue an “I own APE” NFT to shareholders.
AMC has been the subject of as yet unsubstantiated conspiracy theories alleging that there are millions of synthetic AMC shares outstanding.