5 things to know before the stock market opens Friday

Dow futures were pointing to a modest gain at Friday's open, one day after the blue chip average snapped a four-session winning streak with a 0.5% drop.

Daily coronavirus cases in the U.S. hit another record, topping 77,000 on Thursday. Florida on Thursday reported its third straight day of over 11,000 of new infections, another state record.

Sagging tech stocks pushed the Nasdaq down 0.7% on Thursday. Shares of Netflix were sinking 7% in the premarket on a quarterly earnings miss and weaker-than-expected subscriber growth guidance.

Zoom In IconArrows pointing outwards

On Friday's economic calendar, the government reported June housing starts increased more than 17% to a total of nearly 1.19 million units. The rebound in the housing market comes as 30-year fixed-rate mortgages hit new lows, sinking to 2.98% this week, according to Freddie Mac.

2. Netflix reports mixed results, makes Sarandos co-CEO

Netflix on Thursday afternoon reported earnings of $1.59 per share in the second quarter, short of estimates of $1.81. Revenue of $6.15 billion and global paid net subscriber additions of nearly 10.1 million beat expectations. However, Netflix expects 2.5 million net subscriber additions for the third quarter, less than half what analysts had expected.

The video streaming giant also promoted Chief Content Officer Ted Sarandos to co-CEO alongside current CEO and co-founder Reed Hastings. Netflix also said that safely restarting production is a top priority. The 2020 slate is not expected to be impacted heavily by the lengthy halt in film and TV creation due to the coronavirus pandemic.

3. Pelosi says aid bill at $1.3 trillion 'not enough'

House Speaker Nancy Pelosi said a new, developing coronavirus relief bill would cost at least $1.3 trillion, but she argued it's not enough. Leaders in the Democratic-led House and Republican-controlled Senate acknowledge they need to approve more aid as the coronavirus spreads unabated.

Congress has a couple weeks to extend the federal $600-per-week enhanced unemployment benefit that's been a critical lifeline for jobless Americans. Pelosi has pushed for another round of direct payments to individuals, and Senate Majority Leader Mitch McConnell has said he's open to it. But they're currently at odds over what else to include.

4. Fauci to young people: 'You're propagating the pandemic'

White House health advisor Dr. Anthony Fauci speaks at a U.S. Chamber of Commerce event Friday morning, a day after urging young Americans not take the coronavirus lightly. "You're propagating the pandemic," the nation's top infectious disease expert told Facebook CEO Mark Zuckerberg in an interview Thursday evening.

While praising Fauci for his work, Zuckerberg criticized President Donald Trump's handling of the Covid-19 outbreak. "It's really disappointing that we still don't have adequate testing, that the credibility of our top scientists like yourself and the CDC are being undermined," the Facebook chief told Fauci.

5. CDC extends ban on U.S. cruises through September

The Centers for Disease Control and Prevention is extending its ban on passenger cruising from U.S. ports through Sept. 30, citing "ongoing" dangers of coronavirus outbreaks aboard ships. The CDC's no-sail order had been due to expire next week.

Shares of Norwegian Cruise Line, Royal Caribbean and Carnival were under some pressure in the premarket after nosediving Thursday.

In extending the ban Thursday, CDC Director Dr. Robert Redfield said that data collected by the agency this year shows at least 2,973 Covid-19 infections or Covid-like illnesses as well as 34 deaths came from cruise ships.

— Reuters and The Associated Press contributed to this report. Follow all the developments on Wall Street in real-time with CNBC's live markets blog. Get the latest on the pandemic with our coronavirus blog.

Source: Read Full Article