Here are the top news 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, June 30, 2022.
Brendan McDermid | Reuters
U.S. stock futures fell on Tuesday as investors worried about simmering geopolitical tensions between Beijing and Washington ahead of an expected visit to Taiwan by House Speaker Nancy Pelosi. Treasury yields also fell on Tuesday, with the benchmark 10-year Treasury bond trading as low as 2.516% as investors flocked to the perceived safety of U.S. government debt. Shares in mainland China and Hong Kong also fell on Tuesday, and the yen, considered a safe-haven currency, further strengthened. Wall Street’s major stock indexes ended in the red on Monday, snapping a three-day losing streak.
2. Chinese military aircraft are reported to be flying near the dividing line of the Taiwan Strait
Image of Speaker of the House Nancy Pelosi holding her weekly news conference on Capitol Hill Friday, July 29, 2022 in Washington, DC. US House Speaker Nancy Pelosi was expected to arrive in Taipei later on Tuesday, people with knowledge of the matter said, as several Chinese warplanes flew near the median line dividing the Taiwan Strait, a source told Reuters.
Kent Nishimura | Los Angeles Times | Getty Images
Chinese warplanes have flown close to the median line in the Taiwan Strait, Reuters reported on Tuesday, citing a source. Beijing warned Pelosi against visiting Taiwan, a self-governing 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 another big loss, but shares soar
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 jumped on Tuesday after the ride-hailing and food delivery company reported better-than-expected quarterly earnings. Uber’s second-quarter sales came in at $8.07 billion, well above analysts’ expectations of $7.39 billion, according to Refinitiv. However, Uber reported a net loss of $2.6 billion for the quarter, which included a $1.7 billion hit related to revaluation of its investments in Grab Aurora and Zomato. Losses from operations in the quarter ended June 30 totaled $713 million, but the company posted 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 increase dividends
BP logo, pictured in London on May 12, 2021. The International Energy Agency recently reported that in 2021, energy-related carbon dioxide emissions rose to their highest level on record.
Glyn Kirk | Afp | Getty Images
British oil giant BP and US shale producer Devon Energy reported strong quarterly earnings and raised their dividend payouts as higher crude prices this year helped the companies boost their capital return programs. BP, which on Tuesday reported second-quarter profit of $8.5 billion, raised its quarterly dividend by 10% to 6.006 cents per common share. Devon Energy, which on Monday posted better-than-expected second-quarter top- and bottom-line results, announced a 22% increase in its dividend payout. Using a fixed plus variable dividend strategy, Devon’s quarterly payout now stands at $1.55 per share, up from $1.27.
5. Pinterest jumps; the activist firm says it is the largest shareholder
Banner for online image board Pinterest Inc. hangs from the New York Stock Exchange (NYSE) on the morning of Pinterest’s initial public offering on April 18, 2019, in New York.
Spencer Platt | News from Getty Images | Getty Images
Shares of Pinterest rose about 18% in premarket trading on Tuesday, a day after the social media company’s quarterly earnings and revenue fell short of Wall Street estimates and guidance 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 still show the challenging operating environment for the social media name right now. Pinterest shares may be reacting to news that activist investor Elliott Management on Monday revealed it is the company’s largest shareholder, touting the “value creation opportunity” it sees.
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