Stock futures drop to start August trading as market exits in best month since 2020

Chinese e-commerce giant Ali Baba She said she would comply with US regulators and Working to maintain its listings in New York and Hong Kong.

“Alibaba will continue to monitor market developments, comply with applicable laws and regulations, and strive to maintain listing status on both the New York Stock Exchange and the Hong Kong Stock Exchange,” it said in a statement to the Hong Kong Stock Exchange.

The statement came after Alibaba was added to the US Securities and Exchange Commission’s list of Chinese companies at risk of delisting for failing to meet audit requirements on Friday. US-listed Alibaba shares tumbled 11 percent in Friday’s trading session.

– Sumathi Bala

Inflation is hitting consumers’ wallets, and the economy appears to be slowing.

With the consumer accounting for 68% of all economic activity in the first quarter, this is a key metric to watch.

What does all of this mean for businesses tied to consumers, and will they survive a recession? Wall Street analysts pick consumer stocks they say are resilient, even as the economy slows. Professional subscribers can read more here.

– Weezin Tan

Chinese factory activity grew in July, but at a slower pace than in June, according to the latest Caixin/Market manufacturing PMI.

The print of the private poll came in at 50.4, down from 51.7 in June.

The PMI readings are sequential and represent the expansion or contraction from the previous month. A number above 50 represents growth.

during the Weekend, Official data from the National Bureau of Statistics showed that factory activity decreased, With a PMI at 49.

– Abigail Ng

So far, 56% of companies in the S&P 500 have reported second-quarter 2022 results. Of those, 73% have reported EPS results that are higher than analysts’ estimates, according to FactSet.

That means that so far, mixed earnings growth — including both companies that reported and estimates for those later — was 6% for the second quarter. That’s higher than the mixed earnings growth we saw last week.

However, if the actual earnings growth rate is 6% at the end of the season, it would represent the lowest earnings growth rate for S&P 500 companies since the fourth quarter of 2022.

On the other hand, revenue outweighs profits. Combined revenue growth so far is 12.3%, up from last week and last quarter. If the actual revenue growth rate is 12.3%, that would represent the sixth consecutive quarter of year-over-year revenue growth in excess of 10% for the index.

– Carmen Renick

The three major indices ended the day higher on Friday, capping a solid month of trading in July. Here are other key stats on how stocks traded last month.

• The Nasdaq Composite Index has closed more than 22% from 52-week highs, while the S&P 500 and Dow have closed more than 14% and 11% from 52-week highs, respectively.
• The Dow rose 6.73% in July, its best month since November 2020. It was also the best week for the S&P 500 since November 2020. It rose 9.11% in July.
• The Nasdaq Composite rose 12.35% in July and broke a three-month losing streak. It was the index’s best month since April 2020.
• The healthcare, consumer goods and utilities sectors closed only within 10% of their 52-week highs. However, all 11 sectors were positive in July.
• US Treasury yields fell on Friday, narrowing spreads.

– Carmen Renick

Investors are still watching for signs that The United States is in recession And inflation is slowing down. Last week, the Federal Reserve raised its benchmark interest rate by another three-quarters of a percentage point to stave off high inflation.

First reading of GDP for the second quarter on Thursday It was negative, indicating a technical stagnation. on Friday, and Personal consumption expenditures for the month of June It reached its highest level since January 1982. The report is the main inflation gauge.

Strong earnings reports from Amazon and Apple boosted each company’s stocks and pushed the indexes higher to the July roundup. Energy companies such as Chevron and Exxon Mobil also rose on better-than-expected reports, closing higher on Friday. However, not all gains were rosy. Both Meta Platforms and Intel posted disappointing results, sending stocks lower.

– Carmen Renick

Stock futures opened slightly lower to begin trading on Sunday evening.
Dow and S&P 500 futures were down 0.2%. Nasdaq futures fell about 0.3%.

– John Meloy

Stocks enter the usually volatile August with tailwinds. There are dozens of earnings reports Next week, with more than 20% of S&P 500 companies reporting. There is also key data, the most important of which is the July jobs report on Friday.

Big economic reports could become important catalysts now that the Fed has indicated that it will rely on the data for its decision on how much to raise interest rates in September. Federal Reserve Chairman Jerome Powell said the labor market remains strong, and investors worried about an economic slowdown will be watching carefully to see how strong job creation is. There are 250,000 jobs expected. According to the CFRA, since 1995, the S&P 500 has fallen on average 0.5% in August. Strategists say profits can still be a positive force.

“A lot of this is better than feared. If this process continues, it will probably help the market higher. The market seems to be sitting on this idea that we priced it at Armageddon and so far, we haven’t been pressured into doing so,” one strategist said.

– Patty Doom