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Square, Afterpay, Alibaba, Parker-Hannifin, Zoom Video - 5 Things You Must Know

Stock futures rise with solid corporate earnings lifting equities as Wall Street prepares for the first trading of August; Square will buy Australia's Afterpay for $29 billion; Parker-Hannifin to buy U.K. rival Meggitt for $8.8 billion.

Here are five things you must know for Monday, Aug. 2:

1. -- Stock Futures Rise as Wall Street Begins New Trading Month

Stock futures rose Monday with solid corporate earnings lifting equities as Wall Street prepares for the first trading of August.

Contracts linked to the Dow Jones Industrial Average were up 103 points, S&P 500 futures gained 17 points and Nasdaq futures rose 60 points.

The yield on the benchmark 10-year Treasury was down slightly Monday, falling to 1.23%.

Stocks fell Friday and for the week but closed July with their sixth straight month of gains. The S&P 500 fell 0.4% last week but rose 2.3% for the month.

Markets were led lower Friday by Amazon  (AMZN) , which dropped 7.56% after revenue at the tech giant and online retailer disappointed, and U.S. second-quarter gross domestic product that rose 6.5% on annualized basis, less than forecasts.

Amazon is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AMZN? Learn more now.

Sentiment was boosted by a $550 billion infrastructure package moving closer to passage in the Senate this week. But market optimism was kept in check by worries over the pace of the economic recovery amid the spreading delta virus strain.

The U.S. jobs report for July will be released Friday.

2. -- This Week's Calendar: Alibaba Earnings, U.S. Jobs Report

Earnings reports are expected Monday from NXP Semiconductors  (NXPI) , Simon Property  (SPG) , Ferrari  (RACE) , Take-Two Interactive Software  (TTWO)  and SolarEdge Technologies  (SEDG) .

Reports are expected later in the week from Alibaba  (BABA) , Eli Lilly  (LLY) ,  NIO  (NIO) , Amgen  (AMGN) , CVS Health  (CVS) , General Motors  (GM) , Uber  (UBER) , Roku  (ROKU) , Electronic Arts  (EA) , ViacomCBS  (VIACA) , Moderna  (MRNA) , FireEye  (FEYE)  and Virgin Galactic  (SPCE) .

The economic calendar in the U.S. Monday includes Markit Manufacturing PMI (final) for July at 9:45 a.m. ET, ISM Manufacturing Index for July at 10 a.m. and Construction Spending for June at 10 a.m.

The end of the week will see the release of the U.S. jobs report for July, the most closely watched economic indicator of any month. Economic reports on construction spending, factory orders and durable goods orders also are expected during the week.

3. -- Square to Pay $29 Billion for Australia's Afterpay

Square  (SQ)  agreed to pay $29 billion to acquire Australia's Afterpay, a buy-now, pay-later company.

The all-stock deal is Square's largest-ever acquisition.

Square said Afterpay's buy-now, pay-later concept is an alternative to traditional credit and appeals to younger consumers. 

In a statement, Square said it plans to integrate Afterpay into its existing Seller product for small businesses and its Cash App.

“Square and Afterpay have a shared purpose,” said Jack Dorsey, Square’s CEO. “We built our business to make the financial system more fair, accessible, and inclusive, and Afterpay has built a trusted brand aligned with those principles.”

Square also posted second-quarter adjusted earnings of 66 cents a share, rising from 18 cents a year earlier and higher than analysts' forecasts of 31 cents.

Gross profit in the quarter was $1.14 billion, up 91% from a year earlier. Gross profit from Square's Cash App was $546 million.

Shares of Square fell 4.98% in premarket trading to $234.95.

4. -- Parker-Hannifin to Buy U.K. Rival Meggitt for $8.8 Billion

Parker-Hannifin  (PH) , the U.S. maker of motion and control technologies and systems, reached an agreement to buy British engineer Meggitt for 6.3 billion pounds ($8.8 billion) in cash to boost its aerospace operations.

The deal for Meggitt, which specializes in the aerospace, defense and energy markets, would be the biggest ever for Parker-Hannifin.

Parker-Hannifin is acquiring Meggitt just as the aviation industry begins rebounding from a severe downturn suffered during the COVID-19 pandemic.

The acquisition of Meggitt nearly doubles the size of Parker-Hannifin's aerospace systems segment, the company said in a regulatory statement.

Parker-Hannifin declined 0.97% to $309 in premarket trading Monday.

5. -- Zoom Video Settles $85 Million Data Privacy Lawsuit

Zoom Video Communications  (ZM)  reached a preliminary settlement on a user privacy lawsuit, agreeing to pay $85 million and improve its security and privacy practices.

The proposed settlement would resolve a class action lawsuit filed in April 2020 in the U.S. District Court for the Northern District of California alleging that Zoom Video violated user privacy rights by sharing personal data with Facebook  (FB) ,  LinkedIn and Alphabet-owned Google  (GOOGL) , as well as allowing the practice of Zoombombing during Zoom meetings

Zoombombing is when hackers disturb Zoom meetings through displays of pornography, inappropriate language or other undesirable content.

Under the settlement, subscribers would be entitled to 15% refunds on their subscriptions or $25, whichever is larger. Other people who are ineligible to submit a subscription claim would receive $15. The San Jose company also agreed to various security measures to protect users' privacy.

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