1. Stock futures in the red
Traders work at 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 House Speaker Nancy Pelosi’s expected visit to Taiwan. Bond yields also fell on Tuesday, with the benchmark 10-year note trading at 2.516%, as investors flocked to the perceived safety of US government debt. Shares in mainland China and Hong Kong also fell on Tuesday and the safe-haven yen strengthened further. On Monday, Wall Street’s main stock indexes ended in the red, snapping a three-day losing streak.
2. Chinese warplanes reportedly fly near Taiwan Strait demarcation line
An image of Speaker of the House Nancy Pelosi holds 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 briefed on 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 flew close to the median line in the Taiwan Strait, Reuters reported on 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 her expected visit to Taiwan has not been officially announced. Tensions between China and Taiwan have risen 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 rose on Tuesday after the food transportation and delivery company reported better-than-expected quarterly revenue. Uber’s second-quarter sales came in at $8.07 billion, well above the $7.39 billion analysts were expecting, according to Refinitiv. However, Uber posted a net loss of $2.6 billion for the quarter, which includes a $1.7 billion hit related to the revaluation of its investments in Grab Aurora and Zomato. Losses from operations in 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 increase dividends
A BP logo is 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 in history. 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 a 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 reported better-than-expected second-quarter results on the top and bottom lines, announced a 22% increase in its dividend payout. Using a fixed plus variable dividend strategy, Devon’s quarterly payout is now $1.55 per share, up from $1.27.
5. Pinterest jumps; The activist firm says it is the top shareholder
A banner for the 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 Getty Images | Getty Images Shares of Pinterest jumped about 18% in premarket trading on Tuesday, a day after the social media company’s quarterly profit and revenue fell short of Wall Street forecasts and guidance for the current quarter was weaker than expected. While Pinterest’s monthly active user decline wasn’t as bad as we feared, the company’s results nonetheless show the difficult operating environment for the social media name right now. Pinterest stock may be reacting to news that activist investor Elliott Management revealed on Monday that it is the company’s largest shareholder, touting the “value creation opportunity” it sees. — Join the CNBC Investing Club now to follow Jim Cramer’s every stock move. Follow the broader market action like a pro on CNBC Pro.
