Traders on the NYSE floor, July 12, 2022.
Source: NYSE
Here is the most important news investors need to start their trading day:
1. Stock futures go up
Equity markets pointed to a resurgence Tuesday morning. Shares had ended in the red on Monday, with the weight of Apple, after Bloomberg reported that the technology giant would delay hiring and spending next year for some of its teams. Investors are also expecting a new round of earnings reporting this week. Hasbro and Johnson & Johnson announced results before the bell on Tuesday, while Netflix is on the deck after the market closes. And there are many more left: only 8% of S&P 500 companies have reported earnings this season so far.
2. Preview Netflix earnings
The Netflix logo is seen on the remote control of a TV, in this illustration taken on January 20, 2022.
Donat Ruvic | Reuters
With big banks and their earnings reports out of the way, investors ’eyes are on Netflix, especially their subscriber numbers. The streaming giant warned last quarter that it expected to lose 2 million subscribers in the period ending June 30. It looks like a very low bar, but there is a possibility that it will be even worse, writes Alex Sherman of CNBC. Whatever the number, however, Netflix is moving forward with plans to bolster its franchise offerings (see the “Stranger Things” plan), crack down on password sharing, and attract value-hunting subscribers with a level lowest price supported by ads. income. The company recently partnered with Microsoft to work on the latter.
3. Federals poll Amazon
An Amazon delivery worker reviews packages in New York City, July 11, 2022.
Brendan McDermid | Reuters
Federal officials on Monday inspected Amazon’s warehouses in areas of New York City, Chicago and Orlando, Florida, as part of a civilian investigation by the Departments of Labor and Justice over the condition of the buildings. The inspections came days after Amazon Prime Day’s online shopping boom and as the company faces a growing effort among employees to unionize in its stores. Labor organizers have pointed to job security as one of the key reasons for boosting union efforts. A recent Reuters report said Amazon issued 13,000 disciplinary notices in a single warehouse during the year ending April 2020, even for employees who slightly lost expectations.
4. IBM falls after the cash warning
Smith / Gado Collection | Photo Archive | Getty Images
IBM’s revenue and earnings for the most recent quarter exceeded Wall Street expectations on Monday, but that wasn’t enough to boost stocks. The company’s shares fell in the pre-market session on Tuesday after lowering its free cash flow prospects this year to $ 10 billion, below its previous target of up to $ 10.5 billion. IBM chief financial officer Jim Kavanaugh blamed foreign exchange, especially the strong dollar, and the company’s suspension of its “highly profitable” business in Russia for the country’s unprovoked war in Ukraine.
5. China’s U.S. debt falls below $ 1 trillion
The Marriner S. Eccles Federal Reserve Board Building in Washington, DC
Sarah Silbiger | Reuters
For the first time in 12 years, Chinese U.S. debt holdings fell below the $ 1 trillion benchmark. This means that Japan is now the largest international holder of US banknotes, with $ 1.2 trillion. New Treasury Department data, which reflects debt holdings in May, comes as the Federal Reserve struggles with four-decade inflation with aggressive interest rate hikes. China has also tried to diversify its foreign debt holdings. Treasury yields were slightly higher early Tuesday morning as traders and investors expect the Fed’s next rate hike, expected later this month.
– CNBC’s Carmen Reinicke, Alex Sherman, Annie Palmer, Jordan Novet, Jeff Cox and Elliot Smith contributed to this report.
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