Here are five key things investors need to know to start the trading day:
1. Another record close
Stock futures were little changed Friday morning after the S&P 500 powered to a fresh closing high on Thursday. It marked the benchmark index’s ninth record close of the year, and it wasn’t the only big winner. A solid batch of earnings reports from PepsiCo and United Airlines also pushed the Nasdaq Composite to an intraday and closing high. For the week, all three major averages, including the Dow Jones Industrial Average, are on track to finish in the green. Follow live market updates.
2. Netflix and chilled
Netflix failed to impress investors with its second-quarter earnings report after the bell Thursday. The streaming giant topped Wall Street’s expectations and boosted its full-year guidance, but shares were down more than 2% before the bell. The decline came as Netflix signaled lower operating margins in the second half tied to marketing costs and content amortization. Netflix is prepping for a busy content slate in the back half of 2025 that includes the final season of “Stranger Things,” as well as “Happy Gilmore 2,” and the second season of “Wednesday.” It was the second quarter that Netflix withheld subscription data.
3. Chevron’s big win
A Chevron gas station is seen in Austin, Texas, on Oct. 23, 2023.
Brian Snyder | Reuters
Chevron shares jumped more than 3% before the bell Friday after the oil giant won a major arbitration battle against Exxon Mobil. Exxon CEO Darren Woods told CNBC’s Becky Quick that Chevron won the battle against Exxon over Hess Corporation’s offshore oil assets in Guyana. The win paves the way for Chevron’s $53 billion takeover of Hess and clears up the uncertainty that has dragged on its shares in recent months. Exxon and China National Offshore Oil Corporation had filed an arbitration case over Hess’ assets, saying it had the right of first refusal to buy its 30% stake in the offshore oil development called Stabroek Block. A win for Exxon would have resulted in Chevron axing the deal.
4. AWS cuts
An Amazon worker on the picket line during a strike over pay at the Amazon.com Inc. fulfilment center in Coventry, U.K., on Feb. 28, 2023.
Bloomberg | Bloomberg | Getty Images
Amazon‘s cloud unit is the latest business segment at the e-commerce giant to hit the chopping block. The tech giant confirmed Thursday that it cut some roles in its cloud computing division after cutting hundreds of positions last April, as it looks to streamline operations. Amazon’s stores, communications, and devices and services divisions also got hit with layoffs earlier this year. For years, CEO Andy Jassy has undertaken an ambitious plan to cut costs and streamline operations with artificial intelligence. AI has transformed business operations since the launch of ChatGPT, and Jassy has said he expects Amazon to minimize its workforce as a result.
5. Lifting the London fog
A Burberry store at Fashion Valley, an upscale shopping mall, on Dec. 13, 2024, in San Diego, California.
Kevin Carter | Getty Images News | Getty Images
Struggling British fashion brand Burberry is showing healthy signs of appetite in American markets. The trench coat maker’s sales in the Americas — which account for about a fifth of business — rose 4% from a year ago, the company reported in its fiscal first-quarter results Friday. Shares jumped more than 7% on the London Stock Exchange, where the heritage fashion brand is listed. Last fiscal year, Burberry posted a 9% plunge in sales for the year and a 4% drop during the fourth quarter. Luxury companies have been hit hard in recent months by President Donald Trump’s aggressive tariff plans that threaten to wipe out a bounce back in U.S. consumer spending. Burberry is in the midst of a cost-cutting overhaul that resulted in 1,700 job cuts in May.
— CNBC’s Pia Singh, Lisa Han, Sean Conlon, Spencer Kimball, Annie Palmer, Sarah Whitten and Karen Gilchrist contributed to this report.
