Here are the most important information 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
U.S. stock futures fell on Tuesday as investors worried about heated geopolitical tensions between Beijing and Washington ahead of House Speaker Nancy Pelosi’s scheduled visit to Taiwan. Treasury yields also slipped on Tuesday, with the benchmark 10-year Treasury note trading as low as 2.516%, as investors flocked to the perceived safety of US government debt. Stocks in mainland China and Hong Kong also fell on Tuesday, and the yen, considered a safe-haven currency, strengthened further. On Monday, Wall Street’s major stock indexes ended in the red, snapping three-day losing streaks.
2. Chinese warplanes are reportedly flying near the Taiwan Strait demarcation line
An image of Speaker of the House Nancy Pelosi holding her weekly press conference on Capitol Hill Friday, July 29, 2022 in Washington, DC. US House of Representatives Speaker Nancy Pelosi was due to arrive in Taipei later on Tuesday, sources briefed on the matter said, as several Chinese warplanes flew near the center line dividing the Taiwan Strait. , a source told Reuters.
Kent Nishimura | Los Angeles Times | Getty Images
Chinese warplanes flew near the center line in the Taiwan Strait, Reuters reported Tuesday citing a source. Beijing has warned Pelosi against visiting Taiwan, a self-governing island that China claims as its territory. Pelosi is touring the region, but his planned visit to Taiwan has not been officially announced. Tensions between China and Taiwan have increased in recent years.
3. Uber reports another big loss, but stocks soar
Uber CEO Dara Khosrowshahi speaks during a product launch event in San Francisco, California on September 26, 2019.
Philippe Pacheco | AFP via Getty Images
Shares of Uber Technologies jumped on Tuesday after the transportation and food delivery company reported better-than-expected quarterly earnings. Uber’s second-quarter sales came in at $8.07 billion, well ahead of analysts’ forecast of $7.39 billion, according to Refinitiv. However, Uber posted a net loss of $2.6 billion for the quarter, which includes a $1.7 billion loss 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 an important near-term goal.
4. Oil companies are increasing their dividends
A BP logo pictured in London May 12, 2021. The International Energy Agency recently reported that in 2021 energy-related carbon dioxide emissions reached their highest level in history.
Glyn Kirk | AFP | Getty Images
British oil giant BP and U.S. shale producer Devon Energy posted strong quarterly profits and increased dividend payouts as strong crude prices this year helped companies bolster their capital return programs. BP, which posted second-quarter profit of $8.5 billion on Tuesday, raised its quarterly dividend 10% to 6.006 cents per common share. Devon Energy, which published better-than-expected second quarter results on Monday in terms of turnover and profit, announced a 22% increase in its dividend. Using a fixed and variable dividend strategy, Devon’s quarterly payout is now $1.55 per share, down from $1.27 previously.
5. Pinterest jumps; an activist company claims to be its main shareholder
A banner for online image board Pinterest Inc. hangs on the New York Stock Exchange (NYSE) the morning of Pinterest’s IPO on April 18, 2019 in New York City.
Spencer Platt | Getty Images News | Getty Images
Shares of Pinterest soared about 18% in premarket trading on Tuesday, a day after the social media company’s quarterly earnings and revenue fell short of Wall Street forecasts, and the current quarter’s forecast was up. lower than expected. While Pinterest’s monthly decline in active users hasn’t been as severe as feared, the company’s results nonetheless show the tough operating environment for the social media name at the moment. Pinterest shares may react to news that activist investor Elliott Management revealed on Monday that it is the company’s largest shareholder, touting the “opportunities for value creation” it sees.
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