BY THE NUMBERS
Wall Street is set to open lower on the final trading day of July as investors get three Dow stock earnings reports and another reading on inflation to digest. Nasdaq futures were leading the way down Friday, with a decline of more than 1% as Amazon (AMZN) shares fell nearly 7% in the premarket after its first revenue miss in three years. (CNBC)
The Dow and S&P 500 hit all-time highs during Thursday's trading and broke two-day losing streaks. But they failed to top Monday's record closes. The Nasdaq advanced modestly, but still finished about 0.4% away from its latest record close on Monday. All three stock benchmarks were tracking for solid monthly gains. (CNBC)
The Fed's favorite inflation gauge came in slightly below expectations for June. The Commerce Department's latest core personal consumption expenditures price index rose 3.5% on a year-over-year basis, up slightly from May's advance, which was the fastest pace since the early 1990s. At the conclusion of its July meeting on Wednesday, the Fed noted "progress" on inflation and employment goals. (CNBC)
IN THE NEWS TODAY
Dow stock Chevron just reported a second straight profitable quarter as improving demand for petroleum products and a jump in oil prices boosted operations. The company also reinstated its share repurchase program. The oil giant earned an adjusted $1.71 per share on $37.6 billion in revenue, both topping estimates. Shares rose about 1.5% in the premarket. (CNBC)
* Exxon tops estimates with biggest quarterly profit in a year (Reuters)
Caterpillar (CAT), another Dow component, dropped nearly 2.5% in Friday's premarket, despite the heavy equipment maker saying it earned an adjusted $2.60 per share on nearly $12.9 billion in revenue. The industrial bellwether has been benefiting from higher infrastructure spending around the globe. (Reuters)
Procter & Gamble (PG) on Friday topped estimates with quarterly earnings and revenue as consumers bought more premium health and personal care products. The Dow stock rose 1% in the premarket. P&G reported a per-share profit of $1.13 on almost $19 billion in revenue. However, the company warned that increasing commodity costs could hit its earnings in the upcoming year. (CNBC)
Amazon said second-quarter revenue grew by 27% year over year to more than $113 billion, the third $100 billion quarter in a row but actually a slower pace of growth from the blistering 41% advance in the year-ago period. The e-commerce and cloud giant reported Q2 earnings per-share of $15.12, which exceeded expectations. Looking ahead, Amazon warned about lower sales numbers and a lower growth rate for the third quarter. (CNBC)
Unpublished CDC data that was the basis for the decision to recommend that fully vaccinated people begin wearing masks indoors again in places with high Covid transmission rates is expected to be released Friday, according to The Washington Post. The internal CDC document, obtained by the Post, reveals that the delta variant is as contagious as chickenpox.
* Dr. Scott Gottlieb estimates up to 1 million Americans infected with Covid daily as delta spreads (CNBC)
Congress on Thursday approved a $2.1 billion spending bill that would address security concerns at the U.S. Capitol, and bolster federal efforts to relocate Afghans that aided U.S. forces during the war in Afghanistan. It passed the Senate with unanimous support in a 98-0 vote, and later passed the House in a 416-11 vote. The measure will now go to President Joe Biden, who backed the measure in a statement Tuesday. (CNBC)
* VP Kamala Harris unveils strategy to address illegal immigration at the border (CNBC)
Tesla (TSLA) agreed to pay $1.5 million to settle claims that one of the company's over-the-air software updates temporarily limited maximum battery charging capacity and range in 1,743 Model S sedans. The proposed settlement would cover attorneys' fees and costs, and pay owners $625 each in most cases for the reduced battery performance. (CNBC)
* Tesla Megapack caught fire at Victorian Big Battery site in Australia (CNBC)
Elon Musk's brain-machine interface company, Neuralink, has raised $205 million from investors including Google Ventures, Peter Thiel's Founders Fund, and OpenAI CEO Sam Altman. Founded in 2016, Neuralink is trying to develop high-bandwidth brain implants that can communicate with phones and computers. (CNBC)
Robinhood CEO Vlad Tenev on Thursday sought to assuage worries about the company's stock price decline after its initial public offering. "I'm used to being doubted, personally, I think, from the very beginning. We felt like underdogs here at Robinhood and, you know, we'll see underdogs hopefully evolving into comeback kids," he said in a "Mad Money" interview. Shares on Day 2 in the public market fell modestly in the premarket. (CNBC)
* For CNBC Pro subscribers: Cathie Wood buys $45 million of Robinhood shares
Disney (DIS) fired back against Scarlett Johansson after the Marvel actress filed a lawsuit against the studio for releasing "Black Widow" on Disney+. "There is no merit whatsoever to this filing," Disney said in a statement Thursday. (CNBC)
* Amanda Knox slams 'Stillwater' movie in powerful essay (CNBC)
STOCKS TO WATCH
Pinterest (PINS) shares were hammered 21% in premarket trading after the image-sharing website operator reported a quarterly decline in monthly average users. Pinterest had seen usage surge during the pandemic as people remained at home and spent more time in front of their computers. Pinterest did, however, beat analyst estimates for both profit and revenue for its latest quarter.
Capri Holdings (CPRI), the company behind the Michael Kors and Versace luxury brands, earned an adjusted $1.42 per share for its latest quarter, well above the 80 cent consensus estimate. Revenue also exceeded forecasts and Capri raised its annual outlook for the second time this year. The stock jumped 4% in premarket action.
Restaurant Brands (QSR), parent of Tim Hortons, Popeyes and Burger King, reported adjusted quarterly earnings of 77 cents per share, 51 cents above estimates, and revenue also came in above Wall Street forecasts. Results got a boost from an increasing number of customers visiting restaurants as the pandemic receded. Shares rose 2% in Friday's premarket.
Texas Roadhouse (TXRH) beat estimates by 9 cents with quarterly earnings of $1.08 per share, while the restaurant chain's revenue was also above Street forecasts. However, Texas Roadhouse did say it expects food costs to continue to rise and its stock fell 5% in the premarket.
T-Mobile US (TMUS) reported quarterly earnings of 78 cents per share, 25 cents higher than Street forecasts, while the mobile service provider also saw revenue beat estimates. Higher demand for 5G devices and services helped boost its subscriber numbers. Shares dropped 1% in the premarket.
Gilead Sciences (GILD) came in 14 cents ahead of estimates with an adjusted quarterly profit of $1.87 per share, while the drug maker's revenue exceeded estimates as well. However, sales of Gilead's flagship HIV drugs fell 2% during the quarter, and the stock lost 1.5% in premarket trading.