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The Dow Jones news today features the collapse of the Republicans' last-ditch effort to repeal Obamacare, as Sen. John McCain voted against the measure in the early morning hours. Dow Jones futures are down 31 points this morning as tech stocks continue to slide. A disappointing earnings report Amazon.com Inc. (Nasdaq: AMZN) will highlight the tech slump today.
Here are the numbers from Thursday for the Dow, S&P 500, and Nasdaq:
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Now here's a closer look at today's most important market events and stocks, plus Friday's economic calendar.
The Five Top Stock Market Stories for Friday
- While the markets are focused on earnings reports and economic data, the entire mainstream press is engaged in an eye-popping assessment of the new White House Communications Director Anthony Scaramucci. The newest member of the White House team engaged in a colorful rant to a New Yorker reporter about the state of Donald Trump's team, his rivals in the West Wing, and more. The episode is the latest setback for the Trump team as it attempts to push through its economic agenda this summer.
- Earnings reports are back in focus, and the energy sector is leading the way. This morning, Exxon Mobil Corp. (NYSE: XOM) and Chevron Corp. (NYSE: CVX) both reported quarterly earnings before the bell. Shares of XOM stock were off 1.8% despite news that the company had nearly doubled its quarterly profit figure. CVX stock was up 0.3% after the firm matched analysts' expectations.
- In a wild, late-night vote, the U.S. Senate blocked a watered-down bill to repeal the Affordable Care Act. Sen. John McCain (R-AZ) returned to the Senate after being diagnosed with brain cancer to vote against the proposal. Three Republican senators voted down the bill in a vote that ended at 1:30 a.m. EDT. The 49 to 51 vote was a massive setback for Senate leadership that is attempting to pass healthcare reform, tax reform, and an infrastructure bill before the 2018 campaign season gets underway.
- Crude oil prices were fluttering near an eight-week high and are on pace for their strongest weekly gains of 2017. Markets have reacted positively to news that U.S. inventory levels have been on the decline in July and expectations that Saudi Arabia will continue to support prices through export controls. The WTI crude oil price today added 0.1%. Brent crude dipped 0.1%.
- Bitcoin prices today have been on the move after South Korea's political leaders announced plans to increase regulatory oversight of the cryptocurrency. Markets viewed news that BTC won approval as a remittance method in South Korea and the Philippines as another sign of legitimization for Bitcoin. For more on what's driving Bitcoin and other cryptocurrency prices this morning, read more here…
Four Stocks to Watch Today: SBUX, AMZN, TSLA, MRK
- Shares of Starbucks Corp. (Nasdaq: SBUX) fell more than 6% in pre-market hours after the global coffee chain fell well short of earnings expectations after the bell Thursday. In addition to missing top- and bottom-line expectations, the firm announced plans to shutter all 379 of its Teavana stores.
- Shares of Amazon.com Inc. (Nasdaq: AMZN) were off more than 3% in pre-market hours after the e-commerce giant fell well short of Wall Street earnings expectations after the bell on Thursday. The company reported earnings per share of $0.40, a huge miss from the $1.41 expected from analysts. That said, the firm did report a 25% jump in revenue compared to the same period last year. The company's cloud services division also reported a 42% increase in sales compared to the same period in 2016.
Facebook Gains on Monster Earnings Report
- Shares of Tesla Inc. (Nasdaq: TSLA) were up 0.5% as the company prepares to start rolling out its Model 3 to 30 customers this evening. Shares had slumped overnight, but rebounded as markets grew more optimistic about the company's plans. The new vehicle is Tesla's first foray into a more affordable option for customers. The Model 3 has a starting MSRP of $35,000.
- Shares of Merck & Co. (NYSE: MRK) ticked up roughly 0.5% after the firm reported earnings before the bell. The company reported EPS of $1.01. That topped Wall Street estimates $0.87.
- Look for additional earnings reports today from American Airlines Group Inc. (Nasdaq: AAL), AbbVie Inc. (Nasdaq: ABBV), Goodyear Tire & Rubber Co. (NYSE: GT).
Friday's U.S. Economic Calendar (all times EDT)
- GDP at 8:30 a.m.
- Employment Cost Index at 8:30 a.m.
- Consumer Sentiment at 10 a.m.
- Baker Hughes Rig Count at 1 p.m.
- Minneapolis Fed Bank President Neel Kashkari Speaks at 1:20 p.m.