Here Are 3 Hot Things to Know About Stocks Right Now

  • The Dow Jones Industrial Average fell Friday, but pared earlier losses, after a surprise rebound in U.S. hiring reduced the chance of a Fed rate cut.
  • Samsung Electronics (SSNLF) forecast its third consecutive quarterly profit decline, as the U.S. blacklisting of China's Huawei Technologies and a glut in global semiconductor markets continues to hit the bottom line of the world's biggest smartphone-chip maker.
  • BMW (BMWYY) on Friday unveiled plans to begin looking for a new CEO following a decision by its current CEO, Harald Krueger, not to extend his contract for another five-year term.

Wall Street Overview

Stocks fell Friday, the day after the July 4 holiday, but pared earlier losses after a surprising rebound in June hiring reduced the likelihood of an interest rate cut by the Federal Reserve.

The Dow Jones Industrial Average, which lose as much as 232, ended down 43 points, or 0.16%, to 26,922, ending a four-day winning streak. The S&P 500, which has been closing at records in recent days, was off 0.18% to 2,990, while the Nasdaq was down 0.10%.

U.S. hiring rebounded in June, a government report showed Friday, showing that President Donald Trump's economy continues to create jobs at a robust pace despite growing signals of an imminent slowdown. 

The monthly employment report represents one of the earliest and most reliable indicators of how the economy is performing. So the latest figures could reduce pressure on the Federal Reserve at a meeting later this month to cut interest rates to shore up growth.  

"The employment picture continues to be one of the positives to the U.S. economy," Ryan Detrick, senior market strategist for LPL Financial, said.

"Services and manufacturing are both slowing, but the good news is we don't see a recession on the horizon and continued strong jobs data is one of the main reasons. After a sub-100k print in May, jobs bounced back nicely last month. In fact, you have to go back seven years the last time we saw two consecutive prints beneath 100k in a row."

Bank stocks advanced on upon the report's release, with JPMorgan Chase (JPM - Get Report) rising 0.6% and Morgan Stanley (MS - Get Report) climbing 0.5%.

Meanwhile, Trump renewed his attacks on the Federal Reserve Friday, stating that if the Fed lowered interest rates, "we'd be like a rocket ship."

Trump also said Friday that he's preparing an executive order declaring a "favored nations clause" for drug prices that would allow the U.S. to buy drugs based on the lowest prices paid by other countries. Johnson & Johnson (JNJ - Get Report)  down 1.1% Pfizer (PFE - Get Report) , off 1.1%, and Eli Lilly (LLY - Get Report)  falling 1.4%.

In trade news, CNBC reported that China's Ministry of Commerce said the U.S. must lift all trade tariffs if a trade deal is to be reached. China and the U.S. reached a truce in their year-long trade war last week at the G-20 summit in Japan.

In energy news, Brent crude contracts for August delivery, the global benchmark, were 99 cents higher from their Thursday close and selling at $64.29 a barrel. West Texas Intermediate contracts for the same month, which are more tightly linked to U.S. gas prices, were 26 cents higher at $57.60 per barrel.

Chris Cline, founder of the St. Louis coal miner Foresight Energy LP, was one of seven people killed in a helicopter crash offshore the Bahamas on Thursday, according to news reports.

Samsung Electronics (SSNLF)  forecast its third consecutive quarterly profit decline, as the U.S. blacklisting of China's Huawei Technologies and a glut in global semiconductor markets continued to hit the bottom line of the world's biggest smartphone-chip maker.

BMW (BMWYY) on Friday unveiled plans to begin looking for a new CEO following a decision by its current CEO, Harald Krueger, not to extend his contract for another five-year term. The shares were up slightly to $25.11.

JPMorgan Chase and Johnson & Johnson are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells these stocks? Learn more now.

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