Here are the key news items investors need to start their trading day:
1. Stock futures in the red
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, June 30, 2022.
Brendan McDermid | Reuters
US stock futures fell on Tuesday as investors worried about ignited geopolitical tensions between Beijing and Washington ahead of House Speaker Nancy Pelosi’s expected visit to Taiwan. Treasury yields also fell Tuesday, with the 10-year Treasury benchmark trading just 2.516% as investors flocked to the perceived safety of US government debt. Shares in mainland China and Hong Kong also plummeted on Tuesday, and the yen, which was considered a safe-haven currency, strengthened further. On Monday, Wall Street’s major stock indices ended in the red, breaking three-day losing streaks.
2. Chinese warplanes reportedly fly near the Taiwan Strait dividing line
An image of Speaker of the House Nancy Pelosi holding her weekly press conference on Capitol Hill on Friday, July 29, 2022 in Washington, DC. US House of Representatives Speaker Nancy Pelosi was expected to arrive in Taipei later on Tuesday, people briefed on the matter said, as several Chinese warplanes flew close to the median line dividing the Taiwan Strait, a source told Reuters .
Kent Nishimura | Los Angeles Times | Getty Images
Chinese warplanes flew near the median line in the Taiwan Strait, Reuters reported Tuesday citing a source. Pelosi has warned Pelosi not to visit Taiwan, a self-ruled island that China claims as its territory. Pelosi is touring the region, but her expected visit to Taiwan has not been officially announced. Tensions between China and Taiwan have been rising in recent years.
3. Uber reports big loss again, but stocks rise
Uber CEO Dara Khosrowshahi speaks at a product launch event in San Francisco, California on September 26, 2019.
Philip Pacheco | AFP via Getty Images
Shares of Uber Technologies rose Tuesday after the ride and food delivery company reported better-than-expected quarterly earnings. Uber’s second quarter revenue came in at $8.07 billion, well above the $7.39 billion analysts had expected, according to Refinitiv. However, Uber posted a net loss of $2.6 billion for the quarter, including a hit of $1.7 billion related to the revaluation of its investments in Grab Aurora and Zomato. Operating losses for the quarter ended June 30 totaled $713 million, but the company reported positive free cash flow of $382 million. In May, CEO Dara Khosrowshahi told employees in a memo that cash flow positivity was becoming a key short-term goal.
4. Oil Companies Increase Dividends
A BP logo photographed in London on May 12, 2021. The International Energy Agency recently reported that in 2021 energy-related carbon dioxide emissions have risen to their highest levels in recorded history.
Glyn Kirk | Afp | Getty Images
British oil giant BP and US shale producer Devon Energy reported strong quarterly profits and increased their dividend payments as higher crude oil prices this year helped companies ramp up their capital return programs. BP, which posted a $8.5 billion second-quarter profit on Tuesday, increased its quarterly dividend by 10% to 6,006 cents per common share. Devon Energy, which posted better-than-expected Q2 results on the top and bottom lines on Monday, announced a 22% increase in its dividend payment. Using a fixed-plus-variable dividend strategy, Devon’s quarterly payout is now $1.55 per share, up from $1.27.
5. Pinterest jumps; activist firm claims to be top shareholder
A banner for the online picture board Pinterest Inc. hangs on the New York Stock Exchange (NYSE) on the morning Pinterest makes its first public offering on April 18, 2019 in New York City.
Spencer Platt | Getty Images News | Getty Images
Pinterest shares rose about 18% in premarket trading Tuesday, a day after the social media company’s quarterly results and revenue came below Wall Street’s forecasts, and the outlook for the current quarter was weaker than expected. While Pinterest’s monthly decline in active users wasn’t as bad as feared, the company’s results nonetheless show the challenging work environment for the social media name right now. Pinterest’s stock may be reacting to news that activist investor Elliott Management revealed Monday it is the company’s largest shareholder, citing the “value creation opportunity” it sees.
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