Here are the most important news, trends and analysis investors need to start their trading day:
1. Stock futures stagnate ahead of June jobs report
Traders work on the floor of the New York Stock Exchange on November 4. 2020.
U.S. equity futures were flat Friday morning ahead of the release of the June key jobs report, which is set for 8:30 a.m. ET. All major Street indices ended in the green on Thursday, as Wall Street kicked off the second half of 2021 on a positive note after a strong first half. The S&P 500 rose 0.5% to 4,319.94, setting its sixth consecutive record. The Dow Jones Industrial Average added 131 points, ending the session at 34,633.53. The 30-stock Dow Jones has risen three times over the past four sessions and is at its highest level since June 4. The tech-rich Nasdaq rose 0.13% on Thursday to 4,522.38. The major averages are all positive for the week and on track for their second consecutive weekly gain.
2. Economists expect 706,000 jobs to have been created in June.
A company announces a request for help on April 9, 2021 in Pawtucket, Rhode Island.
Spencer Platt | Getty Images
All eyes are on the June jobs report, as investors seek further information on the recovery of the US labor market after the wreckage induced by the coronavirus pandemic continues; so far it is improving more slowly than expected. According to Dow Jones, economists predict that 706,000 non-farm jobs were created in June and expect the unemployment rate to drop from 5.8% to 5.6%. Average hourly earnings are expected to have increased 0.3% in June from May and 3.6% year-on-year. The Labor Department’s employment reports for April and May fell short of Wall Street’s expectations.
3. Robinhood files eagerly awaited IPO filing
Pavlo Gonchar | LightRocket | Getty Images
In its highly anticipated IPO filing Thursday, Robinhood Markets revealed it has 18 million retail clients and more than $ 80 billion in client assets. The pioneer of free stock trading said it was profitable in 2020, posting net income of $ 7.45 million on net sales of $ 959 million, with its number of funded accounts having more than that doubled that year. In 2019, Robinhood lost $ 107 million out of $ 278 million in net income.
Robinhood ended the first three months of this year with a loss of $ 1.4 billion, which is linked to the emergency fundraising she did at the height of the GameStop frenzy fueled by Reddit in January. Revenue for the quarter jumped 309% to $ 522 million, from $ 128 million in the first quarter of 2020. About 38% of Robinhood’s revenue comes from options trading accounts. Stocks represent 25% of revenue, while crypto accounts for 17%.
The company, founded in 2013, is looking to raise $ 100 million when it goes public. It intends to be listed on the Nasdaq and trade under the symbol “HOOD”.
4. Virgin Galactic plans to launch Richard Branson into space on July 11
Sir Richard Branson stands on the floors of the New York Stock Exchange (NYSE) prior to trading in Virgin Galactic (SPCE) in New York, the United States, October 28, 2019.
Richard Branson Virgin Galactic IPO NYSE
Space tourism company Virgin Galactic has scheduled its next test space flight for July 11 and company founder Sir Richard Branson intends to be on board. The timing is particularly noteworthy, as the English billionaire aims to beat Jeff Bezos in space. The founder of Amazon and the richest person in the world is set to launch on July 20 with his own company, Blue Origin. Shares of Virgin Galactic climbed about 30% in pre-market trading to around $ 56 a piece. The planned launch will be Virgin Galactic’s fourth test space flight to date. Branson launched Virgin Galactic in 2004, and the company started listing on the New York Stock Exchange in October 2019.
5. Toyota outperforms GM in the US for the first time in a quarter
A Toyota Tundra pickup truck is seen at a car dealership in San Jose, California.
Yichuan Cao | NurPhoto | Getty Images
Toyota Motor sold more vehicles in the United States than General Motors in the second quarter, marking the first time the Japanese automaker has done so in the three-month reference period. On Thursday, Toyota said it sold 688,813 vehicles in America from April to June, just ahead of GM’s 688,236 vehicles. Toyota’s results have exceeded analysts’ expectations; GMs failed. Toyota could become the best-selling automaker in the United States, depending on where Ford’s results come into play. GM’s downtown rival reports the figure Friday morning and analysts forecast US sales of 645,000 vehicles in the second quarter. The last time GM wasn’t the best-selling automaker in the United States for a quarter was in the third quarter of 1998, when Ford sold them, according to Edmunds.
The auto industry has faced a semiconductor shortage, disrupting production schedules at a time when consumer demand for new vehicles is high. Toyota and other Japanese automakers have so far handled the chip crisis better than their US rivals.
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