A trader works on the floor of the New York Stock Exchange (NYSE) in New York on July 13, 2022.
Brendan McDermid | Reuters
Here is the most important information investors need to start their trading day.
1. Stocks point to a higher open
Stock futures rose in premarket trading as investors digested the latest round of bank earnings. Markets are looking to rebound after the Dow Jones and S&P 500 ended lower on Thursday despite a late rally. The Nasdaq rose slightly. Traders, however, remain wary of the next wave of earnings reports as consumers continue to spend heavily and hiring remains strong despite soaring prices. Investors will also be watching the June retail sales report, due at 8:30 a.m. ET and preliminary consumer sentiment data in July at 10 a.m. ET.
2. Wells Fargo and Citigroup report earnings
A Wells Fargo logo is seen at the SIBOS banking and finance conference in Toronto
Chris Helgren | Reuters
Another day, another set of big bank profits. On Friday, Wells Fargo, echoing its biggest rival JPMorgan Chase, said its profits were hit in the second quarter as it set aside more cash to soften the blow from bad debts. The bank’s earnings fell short of analysts’ expectations. Wells Fargo shares slid in premarket trading. Citigroup, meanwhile, posted profits and revenue above Wall Street projections. Citi CEO Jane Fraser said “the positive factors we’ve seen in both of our credit card businesses in recent quarters have translated into strong revenue growth this quarter.” Bank of America and Goldman Sachs are on deck to report before the bell on Monday.
3. China’s GDP is disappointing
Rush hour traffic at an intersection in Beijing, China June 16, 2022. The Chinese capital had been working to control a new Covid cluster after dozens of people linked to a local nightclub tested positive for the virus. The country, unlike the rest of the world, has pursued a strict zero-Covid policy to contain outbreaks.
Kevin Frayer | Getty Images News | Getty Images
China’s second-quarter GDP rose only slightly from the year-ago period, reflecting the country’s continued struggles with lockdowns meant to limit the spread of Covid-19. GDP rose 0.4%, below analysts’ estimates of 1%. Industrial production growth in China in June also beat expectations, but retail sales rose. The country’s statistics office has warned that China’s economy could suffer from the “risk of stagflation in the global economy”.
4. Pinterest shares soar after Elliott stake report
Pedestrians walk past Pinterest signage displayed outside the New York Stock Exchange.
Michael Nagle | Bloomberg | Getty Images
Shares of Pinterest surged during after-hours trading after the Wall Street Journal reported that activist Elliott Management took a more than 9% stake in the social media company. Shares of Pinterest have fallen 75% in the past 12 months as its global monthly active users have fallen. This week’s news comes after an upheaval last month at the top of Pinterest, when co-founder Ben Silbermann stepped down as CEO and was replaced by former Google commerce chief Bill Ready.
5. Manchin rejects Democrat tax and climate proposals
U.S. Senator Joe Manchin (D-WV) walks to the Senate at the U.S. Capitol in Washington, June 7, 2022.
Jonathan Ernest | Reuters
Senator Joe Manchin, a conservative Democrat from West Virginia, has delivered a crippling blow to his party’s latest attempt to pass a legislative package that includes long-negotiated climate policies and provisions to close tax loopholes for wealthy and corporate, according to NBC News. Democrats hold a narrow 50-50 Senate majority, under Vice President Kamala Harris’ decisive vote. Majority Leader Chuck Schumer had negotiated a package with Manchin that would also prevent major insurance premium hikes under Obamacare before the September deadline. As it stands, Manchin would only support a bill with health care provisions. Democrats stand to lose their majority in Congress in this fall’s midterm elections as voters grow increasingly frustrated with skyrocketing inflation.
– CNBC’s Sarah Min, Hugh Son, Evelyn Cheng and Jonathan Vanian contributed to this report.
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Correction: The Dow Jones and S&P 500 fell on Thursday, while the Nasdaq edged higher. An earlier version distorted their movements.