Here are the top news, trends, and analysis investors need to start their trading day:
1. Stock futures rise according to the June job report
Traders work on the floor of the New York Stock Exchange on November 4th. 2020.
US stock futures rose Friday morning following the release of the better-than-expected June job report. All major street indices closed on Green Thursday as Wall Street got off to a positive start into the second half of 2021 after a strong first half. The S&P 500 rose 0.5% to 4,319.94, its sixth record high in a row. The Dow Jones Industrial Average added 131 points, ending the session at 34,633.53. The 30-person Dow has risen three sessions in a row and is at its highest level since June 4th. The tech-heavy Nasdaq rose 0.13% to 14,522.38 on Thursday. The key averages are all positive for the week and at the level of their second consecutive weekly gain.
2. The US created 850,000 jobs in June
A company is advertising an Aid sign on April 9, 2021 in Pawtucket, Rhode Island.
Spencer Platt | Getty Images
The number of employees outside the agricultural sector rose by 850,000 in June, the Ministry of Labor said on Friday. The number is better than the 706,000 jobs economists were expecting, Dow Jones estimates. However, the unemployment rate rose to 5.9%, while the projections forecast a decline to 5.6%. Average hourly wages rose 0.33% in June and 3.6% year-on-year; both numbers correspond to the estimates. The Department of Labor’s April and May employment reports fell short of Wall Street’s expectations as companies across all industries said they were having difficulty filling vacancies.
3. Robinhood applies for the highly anticipated IPO
Pavlo Gonchar | LightRakete | Getty Images
In its highly anticipated IPO on Thursday, Robinhood Markets announced that it has 18 million retail clients and more than $ 80 billion in client assets. The free stock trading pioneer said it was profitable in 2020, posting net income of $ 7.45 million on net sales of $ 959 million as the number of accounts funded more than doubled that year. In 2019, Robinhood lost $ 107 million on net sales of $ 278 million.
Robinhood ended the first three months of this year in a loss of $ 1.4 billion, related to the emergency funding it closed during the peak of the Reddit-fueled GameStop madness in January. Revenue for the quarter rose 309% to $ 522 million, compared to $ 128 million in the first quarter of 2020. Approximately 38% of Robinhood’s revenue comes from options trading accounts. Stocks make up 25% of sales, while crypto makes up 17%.
Founded in 2013, the company plans to raise $ 100 million when it goes public. It intends to list on the Nasdaq and trade under the ticker “HOOD”.
4. Virgin Galactic plans to launch Richard Branson on July 11th
Sir Richard Branson stands on the trading floor of the New York Stock Exchange (NYSE) in front of the trading of Virgin Galactic (SPCE) in New York, USA, 28 October 2019.
Richard Branson Virgin Galactic IPO NYSE
Space tourism company Virgin Galactic has scheduled its next test flight for July 11th and company founder Sir Richard Branson intends to be on board. The timing is particularly noteworthy as British billionaire Jeff Bezos plans to launch into space. The Amazon founder and richest person in the world is due to launch his own company Blue Origin on July 20th. Virgin Galactic’s shares rose about 30% in pre-trading hours to about $ 56 each. The planned launch will be Virgin Galactic’s fourth test space flight to date. Branson founded Virgin Galactic in 2004 and the company began trading 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 dealership in San Jose, California.
Yichuan Cao | NurPhoto | Getty Images
Toyota Motor sold more vehicles in the US than General Motors in the second quarter. This is the first time the Japanese automaker has done this in a three-month period. On Thursday, Toyota said it had sold 688,813 vehicles in America from April to June, almost ousting GM’s 688,236 vehicles. Toyota’s results exceeded analysts’ expectations; GMs fell short. Toyota may become the best-selling automaker in the US, depending on where Ford’s results come in. GM’s Crosstown rival reported the number on Friday morning, and analysts are forecasting US sales of 645,000 vehicles in the second quarter. The last time GM wasn’t America’s best-selling automaker for a quarter was in the third quarter of 1998 when Ford oversold them, according to Edmunds.
The automotive industry has coped with semiconductor shortages and messed up production schedules at a time when consumer demand for new vehicles was strong. Toyota and other Japanese automakers have weathered the chip crisis better than their US rivals so far.
Correction: The Nasdaq closed at 14.522.38 on Thursday. In a previous version the number was incorrectly specified.
– Follow the whole market like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.