5 things to know before the stock market opens on Friday

Here are the most important news, trends and analysis investors need to start a trading day:

US stock futures Basically flat on Friday morning, The last day of trading in the first week of the second quarter earnings report. Dow Futures imply an opening up about 35 points, while futures Standard & Poor’s 500 Index with Nasdaq Has not changed much. A day ago, the Dow Jones Industrial Average rose 53.79 points, or 0.15%, to close at 34,987.02. The Standard & Poor’s 500 Index and the technology-based Nasdaq Index fell 0.33% and 0.7%, respectively. The 30-stock Dow Jones Index rose for the fourth consecutive week. However, the Nasdaq is expected to break the eight-week winning streak, and the S&P 500 is expected to break its three-week winning streak.

Wall Street will learn about Americans’ recent spending habits at 8:30 am Eastern Time, when the US Department of Commerce will release June retail sales data. According to Dow Jones data, economists expect retail sales to fall by 0.4%. In May, the decline in retail sales exceeded Wall Street’s expectations.

Major US banks focused on their earnings reports this week. Looking forward to the beginning of next week, IBM Is scheduled to report on Monday, and Netflix, United Airlines with Chipotle The results are scheduled to be announced on Tuesday.

Financial Secretary Janet Yellen Told CNBC on Thursday that she expected “There are still months of rapid inflation,” Before price pressures start to fade. “I’m not saying this is a one-month phenomenon. But I think in the medium term, we will see inflation fall back to normal levels. But, of course, we have to pay close attention to it,” Yellen said after the market closed on Thursday. Tell CNBC’s Sara Eisen in an aired interview.

Both the latest consumer price index and producer price index released earlier this week were higher than Wall Street’s expectations, indicating that the recovery of inflation during the recovery of the US pandemic still exists in June.

Yellen said that in the hot real estate market, this is “very different” from the real estate bubble that burst before and after the 2008 financial crisis. However, she said: “I do worry about affordability and rising housing prices will put pressure on first-time home buyers or families with lower incomes.”

US President Joe Biden said on Thursday that as the Chinese government further exerts influence on this semi-autonomous region, the US plans to issue advisory warnings to US companies on “what may happen” in Hong Kong. Biden stated that the situation in Hong Kong, Asia’s major financial center, was “deteriorating” and criticized Beijing for “not fulfilling its commitments to the former British colony,” which returned to Chinese rule in 1997. In addition, according to Reuters, the Biden administration is preparing to impose a round of sanctions on Chinese government officials because of their role in combating democracy in Hong Kong.

The planned actions of the Biden administration reflect the continuing tension in the US-China relationship, which is also very cold under the leadership of Biden’s predecessor and former President Donald Trump.

Shares Intel After the Wall Street Journal reported on the semiconductor company, Friday’s pre-market trading rose about 0.6%. Negotiating to acquire GlobalFoundries About 30 billion U.S. dollars. The newspaper quoted people familiar with the matter as saying that a potential deal between Intel and the US chip maker may not be realized. GlobalFoundries is owned by Mubadala Investment Company, the sovereign wealth fund of the United Arab Emirates. It is said that Has been exploring the blockbuster IPO.

Intel plans to invest billions of dollars in construction under the leadership of the new CEO Pat Gelsinger Two chip factories in Arizona And start a new foundry department. As an influential company in the history of Silicon Valley, Intel has been lagging behind Asian competitors such as TSMC in recent years.

Los Angeles County is the largest county in the United States. Due to the high spread of delta mutations that have led to an increase in coronavirus cases, people are required to wear masks indoors again. This rule also applies to people who have been vaccinated against Covid and will take effect before midnight on Saturday.

About a month ago, Los Angeles County lifted the mask requirement for fully vaccinated people, just as California lifted most of its restrictions during the pandemic. The county’s public health officer, Dr. Muntu Davis, said on Thursday that they are now seeing “substantial community transmission.” Most cases have been recorded in people who have not been vaccinated against Covid.

As global public health officials are increasingly concerned about delta variants, there has been an overall increase in coronavirus cases in the United States recently.

— The Associated Press contributed to this report. Follow all market behaviors like a professional CNBC Professional Edition. Get the latest information about the pandemic CNBC’s Coronavirus Report.