Here are five things you must know for Friday, July 30:
1. -- Stock Futures Fall as Delta Coronavirus Variant Weighs on Outlook
Stock futures were mostly lower Friday as investors weighed the prospect of still-solid economic growth against the prospect of the Delta variant of COVID-19 putting a dent in the final half of the year.
Contracts linked to the Dow Jones Industrial Average were down 88 points, S&P 500 futures were down 27 points and Nasdaq futures were down 166 points.
The yield on the benchmark 10-year Treasury was down 0.27% Friday to 1.247%.
The Commerce Department reported Thursday that gross domestic product, a measure of all goods and services produced during the April-to-June period, grew 6.5% on an annualized basis, below the forecast of 8.4%.
While investors took that as a positive sign the economy is recovering from its pandemic-induced slump, an internal document from the U.S. Centers for Disease Control and Prevention has suggested the Delta coronavirus variant surging across the U.S. appears to cause more severe illness and spread as easily as chickenpox.
The CDC is also scheduled to publish data Friday that will back the CDC's controversial decision this week to change guidance for fully vaccinated people to wear masks indoors in places where transmission of the virus is sustained or high.
2. -- Amazon Stock Falls After Revenue Miss and Lower Forecast
Amazon.com (AMZN) - Get Amazon.com, Inc. Report shares traded lower Friday after the online retail giant posted stronger-than-expected second quarter earnings after the closing bell Thursday but revenue numbers that fell shy of Wall Street forecasts.
Amazon posted earnings of $15.12 a share, 46% higher than the $10.30 a share it earned a year ago and ahead of FactSet consensus forecasts of $12.30 a share.
Revenue came in at $113.1 billion, up 27% from a year ago but still below analysts' estimates of $115.2 billion. Operating expenses were up 26.9% at $105.4 million.
For the current quarter, Amazon said it sees operating income of between $3.5 billion and $6 billion on revenue of between $106 billion and $112 billion. Analysts polled by FactSet are currently expecting revenue of $119.3 billion.
Amazon shares were down 6.28% at $3,374 in premarket trading.
3. -- Friday's Calendar: Exxon and Chevron Earnings
Earnings reports are expected Friday from Procter & Gamble (PG) - Get Procter & Gamble Company Report, Exxon Mobil (XOM) - Get Exxon Mobil Corporation Report, Chevron (CVX) - Get Chevron Corporation Report, AbbVie (ABBV) - Get AbbVie, Inc. Report, Caterpillar (CAT) - Get Caterpillar Inc. Report and Colgate-Palmolive (CL) - Get Colgate-Palmolive Company Report.
The economic calendar in the U.S. Friday includes Personal Income and Outlays for June at 8:30 a.m. ET, Chicago PMI for July at 9:45 a.m. and Consumer Sentiment for July at 10 a.m.
4. -- Robinhood Stock Falls in Second Day of Trading
Robinhood sold 55 million shares at $38 each, the lower end of its $38 to $42 target late Wednesday, raising $2.1 billion and valuing the popular online trading app at around $31.8 billion.
After opening at $38 Thursday, Robinhood shares fell as much as 11% before rebounding to finish off $3.18, or 8.4%, at $34.82.
Robinhood CEO Vlad Tenev spoke sat down with TheStreet's Jim Cramer for his "Know Your IPO" segment Thursday, telling him that despite opening-day losses he is building a long-term business and isn't worried about first-day performance.
Tenev said that Robinhood's mission has always been the democratization of finance, whether that be with commission-free trading of stocks, fractional shares, cryptocurrencies or access to the IPO markets.
Robinhood now has nearly 22 million active daily users. The platform has become synonymous with so-called meme-stock investors who look to collectively build momentum in shares of companies that may or may not have strong earnings potential.
5. -- Tesla Owners Could Get $625 in Class-Action Battery Throttling Settlement
Tesla (TSLA) - Get Tesla Inc Report shares traded lower on Friday after reports that some Tesla owners could get $625 each to settle claims that an over-the-air update pushed to their Model S electric sedans in May 2019 reduced their battery’s charging speed.
The proposed settlement would have Tesla paying $1.5 million into a fund that would pay owners for temporary reductions in battery charging speed, maximum capacity and range, according to documents filed with a U.S. District Court in San Francisco and obtained by CNBC.
Some 1,743 Tesla Model S owners were impacted by the software update, according to the filings. Reuters first reported on the new filings in the class action, David Rasmussen v. Tesla Inc.
Shares of Tesla were down 1.23% at $669 in premarket trading on Friday.