5 things to know before the stock market opens Friday, July 22

Here are the most important news investors should start their trading day:

The three major US stock indexes looked like they were in a mixed market on Friday morning after a relatively strong finish on Thursday. The US dollar, which had been strengthening and weighing on growth-oriented technology stocks, cooled slightly after the European Central Bank, in an effort to counter inflation, raised rates for the first time in more than a decade. That especially helped the tech-heavy Nasdaq, which closed Thursday 1.36% higher. But then former social media darling Snap reported after the bell, and well … see below.

It was brutal. Snap posted weaker-than-expected results and slowing revenue, but the real trigger was the company’s warning that it would not provide guidance for the third quarter because “forward visibility remains extremely challenging.” Snap, joining other tech companies, also said it plans to slow its hiring pace. As of Thursday’s close, Snap shares had already fallen nearly two-thirds so far this year. The company’s dire quarterly report sent a chill through other social media stocks, such as Facebook parent Meta and Pinterest, after hours on Thursday. And Twitter earnings are on deck later Friday morning.

Air travel is back in a big way. Covid restrictions have been largely eased. And airlines are reaping the benefits. The three largest US carriers – United, American and Delta – have all reported quarterly earnings for the most recent period, each pointing to increased demand for the rest of the summer. But the big return to travel has created headaches everywhere: higher fares, longer delays, more cancellations, staff shortages. With costs, fares and demand all high, airlines, which were buoyed by billions of dollars in federal aid during the pandemic, are cutting their flight growth targets. “The more airlines restrict capacity, the higher they can charge tickets,” Henry Harteveldt, founder of Atmosphere Research Group and a former airline executive, told CNBC’s Leslie Josephs. “They won’t get another helping hand,” he added. “They’ve squandered a lot of their goodwill.”

The German government on Friday agreed to a $15.24 billion bailout for energy giant Uniper. The company’s difficulties are related to the Russian invasion of Ukraine and the subsequent energy crisis. Uniper, which is owned by a Finnish company, is Germany’s largest importer of Russian gas. Earlier this month, Uniper asked for government help after warning of rising energy bills. The German government is taking a 30% stake in the company.

President Joe Biden has tested positive for the coronavirus, the White House announced Thursday. The news sparked headlines everywhere. Biden is 79 years old and is therefore considered at higher risk for a more severe bout with Covid. However his symptoms were “very mild” and he continued to work, albeit in isolation. He has been vaccinated and boosted and was receiving Pfizer’s antiviral treatment Paxlovid. It wasn’t long before the development became just another news story. Markets largely resisted it. Covid, which became a pandemic more than two years ago, is still a threat to health and the economy. Tens of thousands of people are infected every day in the US, keeping many stuck at home. And yet every day, thousands are hospitalized while hundreds die. But if the otherwise muted reaction to the president’s infection is any indication, it’s clearer than ever that Americans — and markets — are largely eager to move on, even if the virus isn’t.

– CNBC’s Samantha Subin, Jonathan Vanian, Ashley Capoot, Leslie Josephs, Kevin Breuninger and Katrina Bishop contributed to this report.

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