PayPal rises, Airbnb falls and more: Wednesday’s 5 things to know

Latest / August 3, 2022 / Admin / 0

FOX Business’ Madison Alworth speaks with a restaurant manager in New York City about the challenges faced by the restaurant industry and the struggles faced by business owners across the country.

Here are the main events taking place on Wednesday this could have an impact on trade.

PAYPAL: Shares jumped more than 10% in premarket trading. The online payments company has entered into an information-sharing agreement with activist investor Elliott Investment Management to assess capital return alternatives.

PayPal has also named Blake Jorgensen as chief financial officer. Additionally, product manager Mark Britto will be retiring at the end of the year. A search is underway for his successor.

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PayPal reported net revenue of $6.8 billion, up 9% year-over-year in the second quarter, and a net loss of $341 million, or 29 cents per diluted share. Last year, the company posted net income of $1.18 billion, or $1.00 per diluted share.

Shares of PayPal Holdings are trading higher ahead of Wednesday’s session. (REUTERS/Amir Cohen/File Photo/Reuters Photos)

AIRBNB: Shares of the vacation rental company fell more than 7% in premarket trading after the company issued a weaker-than-expected outlook that overshadowed otherwise strong results. The company reported second-quarter revenue of $2.1 billion, up 58% year-over-year and 73% from the second quarter of 2019. That figure was in line with estimates of Wall Street. Airbnb expects third-quarter revenue of $2.78 billion to $2.88 billion, higher than analyst estimates of $2.77 billion, according to Refinitiv IBES. The company also announced that it would buy back up to $2 billion of its stock.

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CVS leads a large number of health-related companies reporting earnings

A CVS Pharmacy sign is displayed in Mount Lebanon, Pennsylvania. (AP Photo/Gene J. Puskar/AP Newsroom)

EARNINGS: Another busy day ahead for revenue, with a big focus on healthcare. CVS Health, AmerisourceBergen, Moderna and Regeneron Pharmaceuticals are reporting before the opening bell. Some major insurance companies will report in the afternoon, including Met Life and Allstate. Also keep an eye out for hotels and casinos MGM Resorts, online auctioneer Ebay and household products maker Clorox, to name a few.

Waitress working in the service industry

Close-up of a woman working in a restaurant as a waitress and holding a notepad (iStock/iStock)

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ECONOMIC DATA : The Institute for Supply Management releases its non-manufacturing PMI for July. This important indicator of service sector activity is expected to fall for a fourth consecutive month to 53.5, the lowest since May 2020. Recall that any reading above 50 indicates an expanding service sector. In addition, the Commerce Department is expected to report that manufacturing orders jumped 1.1% in June, after rising 1.6% in May.

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INVENTORY REPORT: The Energy Information Administration will release its inventory report for last week. Crude inventories are expected to fall more than 600,000 barrels, following a much steeper-than-expected decline of 4.523 million barrels the previous week. Watch for a buildup of just over 1 million barrels in distillate supplies (heating oil, diesel fuel) and a drawdown of over 1.6 million barrels in gasoline inventories.