5 things to know before the stock market opens Friday, Oct. 22
Here are the most important news, trends and analysis that investors need to start their trading day:
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 20, 2021.
Brendan McDermid | Reuters
U.S. stock futures were mixed Friday, with tech stocks under pressure and the 10-year Treasury yield trading at May highs above 1.69%, before pulling back some. The S&P 500 on Thursday closed at a record and extended its run of winning sessions to seven. The Nasdaq, which also advanced, was about 1% away from its Sept. 7 record close. The Dow Jones Industrial Average closed lower for the first time in three sessions. However, the 30-stock average still remained just shy of its mid-August record close. All three benchmarks were tracking for solid weekly gains.
Intel’s logo is pictured during preparations at the CeBit computer fair.
Fabian Bimmer | Reuters
Dow stock Intel shed 10% in Friday’s premarket, the morning after the company reported weaker-than-expected revenue in the third quarter. The chipmaker also blamed industry-wide component shortage for its PC chip business shrinking 2%. Intel warned its gross margin and free cash flow would decline to a lower level over the next 2 to 3 years as it invests in research and development and builds new chip factories.
The Snapchat application on a smartphone arranged in Saint Thomas, Virgin Islands, U.S., on Friday, Jan. 29, 2021.
Gabby Jones | Bloomberg | Getty Images
Social media stocks sank in the premarket, led lower by Snap‘s 20% plunge on a quarterly revenue miss after its advertising business was disrupted by privacy changes Apple introduced earlier this year. Snap also warned late Thursday that global supply chain interruptions and labor shortages reduce the “short-term appetite to generate additional customer demand through advertising.” Shares of Facebook and Twitter dropped 3% and 4% respectively, as investors worried about the online ad business.
Pfizer said Friday morning that kid-size doses of its Covid vaccine are safe and nearly 91% effective at preventing infections in elementary school children. The shots for kids 5 to 11 could begin early next month. The FDA is expected to post its initial review of the company’s safety and effectiveness data later Friday. Next week, advisers to the agency will publicly debate the evidence.
The CDC late Thursday cleared booster shots of the Moderna and Johnson & Johnson Covid-19 vaccines. Moderna was approved for elderly people and at-risk adults six months after their second shots. That’s in line with Pfizer‘s booster authorization last month. The CDC endorsed a J&J booster for everyone 18 and older who received the initial shot at least two months ago. The agency also gave people the freedom to mix and match any of these three vaccines approved for use in the U.S.
US President Joe Biden (R) greets attendees during a commercial break of a CNN town hall at Baltimore Center Stage in Baltimore, Maryland on October 21, 2021.
Nicholas Kamm | AFP | Getty Images
President Joe Biden said Thursday he was close to striking a deal to pass major infrastructure and social spending measures, with just a handful of issues still under debate, after weeks of intraparty bickering among fellow Democrats. Biden also said corporate tax rates are unlikely to be hiked in a spending bill. Instead, he said a separate minimum corporate tax proposal could fund the social programs. Negotiations now center around four or five issues, Biden said, declining to give further details.