Here are the top news, trends, and analysis investors need to start their trading day:
1. Stock futures mixed after the record close of the S&P 500
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, USA on October 20, 2021.
Brendan McDermid | Reuters
US stock futures were mixed on Friday, with tech stocks under pressure and 10-year Treasury yields trading at May highs of over 1.69% before falling slightly. The S&P 500 closed on a record Thursday, extending its series of profit sessions to seven. The Nasdaq, which also rose, was about 1% off its record high of September 7th. The Dow Jones Industrial Average closed lower for the first time in three sessions. However, the average of 30 stocks was still just below its record close of mid-August. All three benchmarks tracked solid weekly returns.
- Dow stock Honeywell initially fell more than 3% in the premarket on Friday after posting sales below expectations in the third quarter. But stocks made up most of those losses.
- Another Dow stock, American Express, rose 1.5% early after beating estimates for quarterly earnings and sales.
2. Intel stocks decline due to lost sales, outlook warning
The Intel logo is shown during the preparations at the CeBit computer fair.
Fabian Bimmer | Reuters
Dow stock Intel lost 10% in the premarket on Friday after the company reported weaker-than-expected sales in the third quarter. The chipmaker also blamed the industry-wide shortage of components that caused its PC chip business to shrink 2%. Intel warned that its gross margin and free cash flow would drop to lower levels over the next 2-3 years as the company invests in research and development and builds new chip factories.
3. Snap stocks go down after online advertising slows down
The Snapchat application on a smartphone arranged in Saint Thomas, Virgin Islands, USA on Friday January 29, 2021.
Gabby Jones | Bloomberg | Getty Images
Social media stocks fell in the premarket, led by Snap’s 20% slump due to a quarterly loss of revenue after its advertising business was disrupted by privacy changes Apple introduced earlier this year. Snap also warned late Thursday that global supply chain disruptions and labor shortages are “reducing the short-term appetite for generating additional customer demand through advertising.” Facebook and Twitter stocks fell 3% and 4% respectively as investors worried about the online advertising business.
4. Pfizer publishes data on the trial of children; CDC approves further boosters
Pfizer said Friday morning that child-sized doses of its Covid vaccine are safe and nearly 91% effective at preventing infections in elementary school children. Recordings for children ages 5-11 could begin early next month. The FDA is expected to release its first review of the company’s safety and efficacy data later on Friday. Advisors to the agency will be publicly debating the evidence next week.
The CDC late Thursday approved booster shots of the Moderna and Johnson & Johnson Covid-19 vaccines. Moderna was approved for the elderly and at-risk adults six months after the second vaccination. This is in line with Pfizer’s booster approval last month. The CDC advocated a J&J booster for anyone 18 and older who received their first vaccination at least two months ago. The agency also gave people the freedom to combine any of these three vaccines approved for use in the United States
5. Biden says corporate income tax is unlikely to increase in spending bill
United States President Joe Biden (R) greets attendees during a CNN City Hall commercial break on the Baltimore Center Stage in Baltimore, Maryland on October 21, 2021.
Nicholas Comb | AFP | Getty Images
President Joe Biden said Thursday he was on the verge of reaching an agreement to pass key infrastructure and social spending, with only a handful of issues debated after weeks of internal party disputes among Democrats. Biden also said corporate tax rates are unlikely to increase in an expense statement. Instead, he said a separate proposal for a minimum corporate tax could fund the welfare programs. Negotiations are now focused on four or five issues, Biden said, declining to give further details.
– Associated Press and Reuters contributed to this report. Follow all market activity like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.