These are the main events that take place on Wednesday that may affect trade.
PAYPAL: Shares rose more than 10% in premarket trading. The online payment company has entered into an information-sharing agreement with activist investor Elliott Investment Management to evaluate capital return alternatives.
PayPal has also appointed Blake Jorgensen as its Chief Financial Officer. In addition, chief product officer Mark Britto will retire at the end of the year. A search is underway for his successor.
HOUSEHOLD CREDIT CARD DEBT RISES IN SECOND QUARTER, LARGEST JUMP IN OVER 20 YEARS
PayPal reported net sales of $6.8 billion, up 9% year over year in the second quarter and a net loss of $341 million, or 29 cents per diluted share. Last year, the company posted net income of $1.18 billion, or $1.00 per diluted share.
AIRBNB: Shares of the vacation rental company were down more than 7% in premarket trading after the company issued a weaker-than-expected outlook that overshadowed otherwise strong results. The company reported revenue of $2.1 billion in the second quarter, up 58% year over year and 73% higher than in the second quarter of 2019. The number was in line with Wall Street estimates. Airbnb expects third-quarter revenue of $2.78 billion to $2.88 billion, ahead of analyst estimates of $2.77 billion, according to Refinitiv IBES. The company also announced that it will repurchase up to $2 billion of its shares.
AIRBNB SEES 30% MORE NIGHTS BOOKED FOR SUMMER TRIP COMPARED TO PRE-PANDEMIC
REVENUE: Another busy day ahead for earnings, with a big focus on healthcare. CVS Health, AmerisourceBergen, Moderna and Regeneron Pharmaceuticals report ahead of the opening bell. Several major insurance companies will report in the afternoon, including Met Life and Allstate. Also check out hotel and casino game MGM Resorts, online auctioneer Ebay and household products maker Clorox to name a few.
NYC RESTAURANTS COMPETE TO RISE TO PRE-PANDEMIC PROFIT
ECONOMIC DATA: The Institute for Supply Management publishes its non-manufacturing PMI for July. This key gauge of service activity is expected to fall for the fourth straight month to 53.5, its lowest level since May 2020. Remember, any reading above 50 indicates a growing services sector. The Commerce Department is also expected to say production orders rose 1.1% in June, after rising 1.6% in May.
CLICK HERE TO READ MORE ABOUT FOX BUSINESS
INVENTORY REPORT: The Energy Information Administration will release its inventory report for last week. Crude inventories are expected to fall by more than 600,000 barrels, following a much stronger-than-expected drop of 4,523 million barrels the previous week. Watch for an increase of just over a million barrels of distillate stocks (heating oil, diesel fuel) and a draw of more than 1.6 million barrels of gasoline stocks.