Here are five important things investors should know to start trading today:
1. June Work
On Thursday morning, stock futures showed little change as investors braced for the upcoming non-farm payroll report from the Bureau of Labor Statistics, set to be released at 8:30 AM ET. Economists surveyed by Dow Jones are anticipating an addition of 110,000 jobs for June. Interestingly, the private sector reportedly lost 33,000 jobs last month, as highlighted by the ADP’s private payroll report released on Wednesday. Market volatility was evident on Wednesday, but news regarding a trade deal between the US and Vietnam helped stocks rebound. The S&P 500 finished the day up by 0.47%, while the Nasdaq Composite gained a notable 0.94%. Conversely, the Dow Jones Industrial Average saw a slight drop of 10.52 points, or about 0.02%. Just a note, the New York Stock Exchange and the Nasdaq will close early at 1 PM on Thursday in observance of Independence Day.
2. Trade Deal Conditions
Recently, President Donald Trump announced that the US and Vietnam have finalized trade deals. Under this agreement, imports from Vietnam into the US will incur a 20% tariff, a significant reduction from the earlier 46% rate introduced in April. Additionally, there’s a 40% tariff on goods transferred through other countries aimed at circumventing trade restrictions. Some companies like Nike, Lululemon, and Under Armour initially saw stock price increases following the news, but their gains diminished after the disclosure of these tariff percentages. Notably, Nike still managed to rise by 4% during this session.
3. Another Round of Layoffs
This year, Microsoft has laid off around 9,000 workers as part of its ongoing restructuring efforts. Although this move affects less than 4% of its global workforce, it’s all part of a strategy to streamline management. The company has seen several cuts over the year, including around 6,000 employees in May and at least 300 in June. A spokesperson for Microsoft mentioned that these organizational changes are crucial for positioning the company to succeed in a shifting market.
4. Delivery Reports
Tesla reported about 384,000 vehicle deliveries in the second quarter, marking a 14% decrease compared to the same period last year. This decline comes amid rising competition from Chinese EV manufacturers and some backlash against CEO Elon Musk. Consequently, Tesla’s shares dipped nearly 5% on the day of the report, down approximately 22% for the year. Other electric vehicle manufacturers also reported their delivery numbers; Rivian delivered 10,661 vehicles, a 22.7% drop from the previous year, while Lucid reported 3,309 deliveries, reflecting a 38% increase year-over-year.
5. Freevee Shutdown
Amazon has announced the impending shutdown of Freevee, its ad-supported streaming service, set for August. Users will still have access to free content on Prime Video without having to subscribe to Amazon’s Prime service. While this change may not come as a shock, especially with a November deadline for transitioning, the company plans to streamline user experience by phasing out the Freevee brand after introducing ads to Prime Video earlier this year.
