Stock futures sink ahead of earnings, Pelosi trip
Stock futures were down early Tuesday as investors awaited another wave of corporate earnings and watched geopolitical tensions ahead of US House Speaker Nancy Pelosi’s trip to Taiwan.
By 6:30 a.m. ET, S&P 500 futures were down 0.9%, Dow futures were down 0.6%, and Nasdaq futures were down 1 .1%.
On Monday, major averages were lower, but little changed, as August kicked off with a lackluster start to trading after July saw the S&P 500 gain more than 9% for its best month since November 2020.
US equity futures took inspiration from international markets, with major European indices red across the board, Hong Kong’s Hang Seng falling 2.3% overnight and Shanghai stocks more than 2.2%. The Japanese Nikkei fell 1.4% overnight.
On the earnings front, shares of Uber (UBER) soared in premarket trading after the company reported a better-than-expected quarter across the board.
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.
Uber shares rose 9% before the bell on Tuesday.
The price of crude oil also fell early on Tuesday, down more than 1%, with WTI crude futures trading below $93 a barrel. 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 to return below $23,000. A broad decline in crypto markets was underway on 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) rose more than 18% in premarket trading after activist investor Elliott Management confirmed a stake in the social media company that makes it the main shareholder of Pinterest.
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.
Elsewhere on the earnings front, investors were awaiting results from Caterpillar (CAT) and DuPont (DD) among other companies expected to report results before the opening bell.
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