Here are the most important information investors need to start their trading day:
1. Stocks seek to shed back-to-back losses
Traders work on the floor of the New York Stock Exchange (NYSE) on July 25, 2022 in New York City. Shares edged higher in morning trade as investors weigh in on the Federal Reserve’s upcoming meeting this coming Wednesday.
Spencer Platt | Getty Images News | Getty Images
2. Nancy Pelosi leaves Taiwan
Televisions broadcast reports of United States House Speaker Nancy Pelosi’s visit to Taiwan in Taipei, Taiwan on Tuesday, August 2, 2022.
Lam Yik Fei | Bloomberg | Getty Images
House Speaker Nancy Pelosi left Taiwan around 6 a.m. ET on Wednesday, marking the end of a brief but controversial stopover on the self-governing island that China claims as its own territory. While there, the California Democrat met with Taiwanese President Tsai Ing-wen and signaled her support for the Democratic Island. “Our [congressional] delegation came here to send an unequivocal message: America stands with Taiwan,” Pelosi said, according to NBC News. After repeatedly warning Pelosi against visiting Taiwan, Beijing responded by banning various imports of Taiwanese products into China, including cookies, grapefruit and frozen horse.China’s Ministry of Commerce has suspended exports of natural sand to Taiwan, and the country’s military has also started conducting air and sea exercises around from Taiwan.
3. CVS Health raises full-year guidance
A pedestrian crosses the parking lot of a CVS Health Corp store. in Oakland, Calif. on August 2, 2019.
Michael Short | Bloomberg | Getty Images
Shares of CVS Health rose on Wednesday after the company raised its full-year earnings outlook and beat Wall Street expectations with its second-quarter results. CVS now expects adjusted earnings between $8.40 and $8.60 per share this year, up from its previous guidance of $8.20 to $8.40. The company, which in addition to its pharmacies owns health insurer Aetna, saw second-quarter sales rise 11% year-over-year to $80.64 billion, beating Refinitiv’s estimate of $76.37 billion. Adjusted earnings per share for the quarter of $2.40 also beat analysts’ estimates of $2.17.
Also ahead of Wednesday’s opening bell, Taco Bell owner Yum Brands reported mixed quarterly results.
4. Tuesday Night Earnings Recap
Brian Chesky, CEO and co-founder of Airbnb Inc., speaks during an Economic Club of New York luncheon at the New York Stock Exchange (NYSE) in New York, United States, on Monday March 13, 2017.
Michael Nagle | Bloomberg | Getty Images
A number of noteworthy companies released quarterly numbers after Tuesday’s close. Here’s a quick breakdown of how they did it:
- Airbnb reported better-than-expected second-quarter earnings and revenue that nearly met estimates, while releasing third-quarter guidance ahead of Street’s estimates. The shares were down more than 7% in premarket trading. CNBC’s Sofia Pitt has a full recap here.
- Advanced Micro Devices’ second-quarter earnings and sales beat analysts’ expectations, but the chipmaker’s third-quarter revenue forecast came in slightly below estimates. Its stock fell about 6% in premarket trading. Read CNBC tech reporter Kif Leswing’s full story on earnings here.
- Starbucks’ quarterly results beat estimates on both highs and lows, and interim CEO Howard Schultz says the coffee chain’s customers haven’t cut spending or switched to cheaper items despite continued high inflation. Shares rose nearly 2% in premarket. CNBC’s Amelia Lucas recaps the earnings in full here.
- PayPal saw revenue rise 9% year-over-year in the second quarter to $6.81 billion, beating analysts’ forecasts, while adjusted earnings per share of 93 cents beat estimates for 7 cents. Shares of the fintech company, which also has a value-creation information-sharing agreement with activist Elliott Management, jumped nearly 13% in premarket trading. Read a full quarterly recap from CNBC’s Jordan Novet.
5. Mortgage applications increase for the first time in 5 weeks
Homes in Hercules, California, U.S., Tuesday, May 31, 2022. Home buyers face deteriorating affordability as mortgage rates hover around the highest levels in more than a decade.
David Paul Morris | Bloomberg | Getty Images
Mortgage applications rose last week, the first time since June 24 that volume increased week-over-week, according to the Mortgage Bankers Association. Total demand for mortgages rose 1.2%, helped by the average 30-year fixed mortgage rate posting its biggest weekly decline since 2020. Homebuying applications rose 1% from the previous week, while requests for refinancing increased by 2%, the MBA said. The latest mortgage data comes amid concerns about weakening consumer confidence and a slowing U.S. economy, as the Fed tightens monetary policy in hopes of easing inflation the higher since the early 1980s.
— CNBC’s Su-Lin Tan, Melissa Repko and Lisa Rizzolo contributed to this report. NBC News also contributed.
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