5 things to know before the stock market opens on Friday July 29

A screen displays the Fed’s rate announcement as a trader reacts on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 27, 2022.

Brendan Mcdermid | Reuters

Here are the most important information investors need to start their trading day:

1. Review of a summer Friday

2. Amazon: In fact, consumers are doing well

An Amazon Prime truck driver is seen in Los Angeles, California on Amazon Prime Day, July 12, 2022.

Frederic J. Brown | AFP | Getty Images

Well, Amazon consumers, anyway. Shares of the e-commerce giant fell earlier this week, when Walmart slashes earnings outlook as historic inflation levels weigh on consumers. But Amazon executives said Thursday, when the company released its quarterly results, that inflation was not hitting its customers as hard as other retailers. This is because Amazon and Walmart cater to different customers. “Amazon’s core consumer is better off than Walmart’s consumer, and that seems to allow them to outperform Walmart,” said DA Davidson analyst Tom Forte. Amazon shares rose sharply in premarket trading. CNBC’s Annie Palmer break it down here.

3. The iPhone is coming

A customer holds the new green-colored Apple iPhone 13 pro shortly after it went on sale inside the Apple Store on 5th Avenue in New York City on March 18, 2022.

fresh mike | Reuters

Apple shares rose in premarket trading after the gargantuan gadget supplier beat Wall Street expectations for quarterly results and revenues. Cupertino kids can thank their pride and joy, the good old reliable iPhone. The strong sales came even as the iPhone 13 is in the second half of its product cycle, which means a new model is coming soon. “We had an all-time high in Switches and saw double-digit growth for customers new to iPhone,” CEO Tim Cook said. Still, although Cook said the company expects revenue growth to be strong in the current quarter, he cited “pockets of softness.” Apple’s slowing services growth is a potential cause for concern, writes CNBC’s Kif Leswing.

4. JetBlue’s next destination

Terminal A at LaGuardia International Airport for JetBlue and Spirit Airlines in New York.

Leslie Joseph | CNBC

It took months, a lot of back and forth, several bids and a few deferred shareholder votes, but JetBlue finally did. The airline convinced the low-cost airline Spirit abandon its merger with another low-cost carrier Border and agree to be acquired by JetBlue in a $3.8 billion deal. Now comes the hardest part for JetBlue and Spirit: get the acquisition approved by the Biden administration, which is skeptical of the merger. For example, the Department of Justice filed a lawsuit last year to block JetBlue’s Northeast alliance with American airlines. This case will be tried in September. Still, JetBlue is bullish and expects regulators to sign off on the Spirit deal either late next year or early 2024, with the merger finalized in the first half of 2024. CNBC’s Leslie Josephs explain here.

5. Biden and Xi speak at a tense moment

US President Joe Biden and Chinese President Xi Jinping had a phone call on Thursday. Pictured is their November 15, 2021 virtual reunion.

Mandel Ngan | AFP | Getty Images

The American President Joe Biden and Chinese President Xi Jinping spoke for more than two hours on Thursday, and they began arranging their first face-to-face meeting since Biden’s inauguration. The lengthy conversation between the two superpower leaders came after the House sent a bill to Boost US Competitiveness with China in Biden, and as the world focuses on Taiwan, the self-governing island that China claims as its own. House Speaker Nancy Pelosi, D-California, has indicated she may visit Taiwan on a trip to Asia that begins this week, which could inflame U.S.-China relations. At the beginning of the week, meanwhile, The New York Times reported that US officials are increasingly concerned that China will act against Taiwan in the next 18 months. Despite all that, it appears Biden and Xi had a constructive appeal, experts say. Read CNBC reporter Evelyn Cheng take from beijing here.

– CNBC’s Jesse Pound, Annie Palmer, Kif Leswing, Leslie Josephs and Evelyn Cheng contributed to this report.

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