Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Global stocks lower
1. Global stocks lower
Shares in Asia slid on Friday after weak earnings in the U.S. halted Wall Street’s record run.
European stocks were lower Friday as market participants continued to digest the European Central Bank’s decision to hold on monetary policy and reacted to the PMI data.
U.S. futures pointed to a slightly higher open on Friday, after weak earnings brought the Dow’s nine-day winning streak to an end in the prior session. At 9:54AM GMT, the blue-chip Dow futures gained 22 points, or 0.12%, S&P 500 futures rose 3 points, or 0.15%, and the Nasdaq 100 futures traded up 8 points, or 0.18%.
2. Market movers
2. Market movers
Starbucks, Chipotle, Vodafone, Southwest: Shares in Starbucks (SBUX) are slipping premarket after the popular coffee chain reported slower sales growth in the latest quarter. The company's sales grew 7.3% to $5.2 billion, missing Wall Street expectations.
Meanwhile, shares in Chipotle (CMG) swung between gains and losses in extended trading after the company reported that quarterly profits were down 82% from last summer due to high-profile E. coli problems.
Shares in Vodafone (VOD) are rising by about 5% in London after the European mobile operator reported better-than-expected quarterly results.
Southwest Airlines (LUV) shares were holding steady ahead of the open after the airline canceled 1,150 flights in 24 hours. The trouble was initially caused by a "system outage." Shares in Southwest dropped by 11% on Thursday.
3. Euro zone weak growth
3. Euro zone weak growth
The euro area composite purchasing managers’ index (PMI) for July also took a hit from Brexit worries, falling to an 18-month low.
Markit will release its preliminary July manufacturing PMI for the U.S. on Friday at 13:45GMT, in the day’s only major data point stateside.
4. U.K. business activity hurt by Brexit
4. U.K. business activity hurt by Brexit
Business activity in the U.K. contracted at the steepest pace since early-2009 in July in the wake of Britain’s decision to leave the European Union, known as a Brexit.
The data released on Friday pointed to a possible third quarter recession in the British economy, with Markit chief economist Chris Williamson suggesting that the Bank of England would have to take action.
