Stock futures sink ahead of earnings, Pelosi trip

Stocks ended lower on Tuesday after a volatile trading session that saw the Nasdaq gain more than 1% at its highs and the Dow eventually lose more than 1%.

[Click here to read what’s moving markets on Wednesday, August 3]

When the closing bell rang on Tuesday, the S&P 500 was down 0.66%, the Dow Jones 1.22% and the Nasdaq 0.16%.

Stocks opened Tuesday’s session lower, with traders citing rising US-China tensions amid House Speaker Nancy Pelosi’s trip to Taiwan as a source of tension in the market.

Shares around the world were down on Tuesday night ahead of the trip, with major European indexes red across the board, Hong Kong’s Hang Seng falling 2.3% and Shanghai stocks more than 2.2%. The Japanese Nikkei fell 1.4% overnight.

Economic data released Tuesday on the labor market showed a slowdown in the number of job openings from June, with the latest survey of job openings and labor turnover showing that 10.7 million jobs were available at the start of the summer. This is the lowest number of jobs open since September 2021.

Over the past few months, Federal Reserve officials have talked about slowing the pace of job creation as a way to cool demand in the job market and the broader economy without causing unemployment to rise.

On the earnings front, shares of Uber (UBER) rallied after the company reported a better-than-expected quarter across the board. Shares earned up to xxxx

The company reported revenue of $8.1 billion on gross bookings of $29.1 billion. Revenue was expected to reach $7.4 billion. Adjusted EBITDA also beat estimates, totaling $364 million versus expectations of $266 million. Uber also said it recorded $382 million in free cash flow in the second quarter.

Also on the earnings side, shares of Caterpillar (CAT) fell more than 5% on Tuesday after the industrial giant reported quarterly earnings slightly below Wall Street estimates.

From the market oddity department, shares of Chinese technology company AMTD IDEA Group (AMTD) rose 300% on Tuesday, while shares of AMTD Digital (HKD), a subsidiary of AMTD IDEA, rose 250%. % and have gained more than 15,000% since its IPO last month.

In a statement released early Tuesday, AMTD Digital said: “During the period since our IPO, the Company has seen significant volatility in our ADS price and has also seen very active trading volume. To our knowledge , there are no material circumstances, events or other matters relating to the business and operational activities of our company since the date of the IPO.”

Tuesday’s Nasdaq rally was also fueled by several heavily beaten high flyers who have been market leaders in some of the recent rallies since mid-June lows.

Names like Peloton (PTON), Coinbase (COIN), Roku (ROKU), Palantir (PLTR) and Virgin Galactic (SPCE) were all trading higher on Tuesday, with Peloton leading this group, gaining as much as 12, 5% without news. .

On Monday, Bloomberg reported that a clerical error by Barclays bankers could allow some holders of Peloton Notes to earn a return of more than 1,000% on investments that had essentially gone bankrupt.

The price of crude oil ended Tuesday little changed at $94.25 a barrel as the price of gas in the United States has now fallen 17% since peaking in mid-June at less than $4.17 a gallon.

Patrick de Haan at GasBuddy said gas prices on Monday will likely fall below $4/gallon nationwide in the next 10 days.

In the crypto markets, bitcoin (BTC-USD) fell more than 2% early Tuesday, but stood near $23,000 when the closing bell rang on Wall Street. A broad decline in crypto markets hit early Tuesday morning amid risky sentiment in financial markets.

Crypto markets were also under pressure following a Monday night hack of the Nomad protocol, which lost almost all of its funds for a total of around $200 million.

In individual stock news, shares of Pinterest (PINS) gained more than 11% after activist investor Elliott Management confirmed a stake in the social media company that makes it Pinterest’s largest shareholder.

Elliott also backed Pinterest’s new CEO, Bill Ready, calling Ready “the right leader to oversee Pinterest’s next phase of growth.”

The news eclipsed a quarterly report from Pinterest that showed a drop in user numbers as social media players continue to struggle in a changing digital advertising market. Shares of Pinterest had gained up to 19% in premarket trading.

The Pinterest logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., October 20, 2021. REUTERS/Brendan McDermid

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