Here are the most important news that investors need to start their trading day:
1. Stocks are looking to get rid of consecutive losses
Traders work on the floor of the New York Stock Exchange (NYSE) on July 25, 2022 in New York City. Stocks are slightly higher in morning trading as investors weigh the upcoming Federal Reserve meeting next Wednesday.
Spencer Platt | Getty Images News | Getty Images
2. Nancy Pelosi leaves Taiwan
Televisions broadcast news reports of US House Speaker Nancy Pelosi’s visit to Taiwan in Taipei, Taiwan, on Tuesday, August 3. 2, 2022.
Lam Yik Fai | Bloomberg | Getty Images
House Speaker Nancy Pelosi left Taiwan on Wednesday at about 6 a.m. ET, marking the end of a brief but controversial layover on the self-governing island that China claims as its territory. While there, the California Democrat met Taiwanese President Tsai Ing-wen and indicated her support for the Democratic island. “our [congressional] The delegation came here to send an unmistakable message: America stands with Taiwan, according to NBC News. After Pelosi repeatedly warned against visiting Taiwan, Beijing responded by banning various imports of Taiwanese goods to China including biscuits, grapefruit and frozen horse. China’s Ministry of Commerce has halted exports of natural sand to Taiwan, and the country’s military has also begun conducting air and sea exercises around Taiwan.
3. CVS Health raises full-year outlook
A pedestrian walks into a CVS Health Corp. parking lot. Store in Oakland, California, Aug. 2, 2019.
Michael Short | Bloomberg | Getty Images
Shares of CVS Health rose Wednesday after the company raised its full-year earnings forecast and beat Wall Street expectations for second-quarter results. CVS now expects adjusted earnings of between $8.40 and $8.60 per share this year, up from previous guidance of $8.20 to $8.40. The company, which in addition to its drug warehouse owns health insurer Aetna, saw second-quarter sales increase 11% year-over-year to $80.64 billion, beating Refinitiv’s estimate of $76.37 billion. Adjusted earnings per share for the quarter of $2.40 also beat analyst estimates of $2.17.
Also before the opening bell on Wednesday, owner of Taco Bell Yum Brands reported mixed quarterly results.
4. Tuesday Night Earnings Summary
Brian Chesky, CEO and co-founder of Airbnb Inc. , during the New York Economic Club luncheon at the New York Stock Exchange (NYSE) in New York, US, on Monday, March 13, 2017.
Michael Nagel | Bloomberg | Getty Images
A number of noteworthy companies announced quarterly numbers after Tuesday’s close. Here’s a quick breakdown of how they do it:
- Airbnb reported better-than-expected second-quarter earnings and returns that were nearly in line with estimates, while it issued guidance for the third quarter ahead of Street’s estimates. Shares are down more than 7% in pre-market trading. CNBC’s Sophia Peet has a full summary here.
- Advanced Micro Devices’ second-quarter earnings and sales beat analysts’ expectations, but the chip designer’s third-quarter revenue forecast came in slightly below estimates. Its stock is down about 6% in pre-market trading. Read CNBC’s full story on earnings here.
- Starbucks’ quarterly results beat estimates in the top and bottom rows, and interim CEO Howard Schultz noted that the coffee chain’s customers were not holding back on their spending or trading in cheaper goods despite persistent hyperinflation. Shares rose about 2% in the primary market. CNBC’s Amelia Lucas summarizes the earnings in full here.
- PayPal saw second-quarter revenue increase 9% year-over-year to $6.81 billion, topping analysts’ expectations, while adjusted earnings per share of 93 cents beat estimates by 7 cents. Shares of the fintech company, which also entered into an information-sharing agreement on value creation with activist Elliott Management, are up nearly 13% in pre-market trading. Read the full summary of the quarter from Jordan Novett on CNBC.
5. Mortgage applications rise for the first time in 5 weeks
Homes in Hercules, California, US, Tuesday, May 31, 2022. Home buyers face a deteriorating affordability situation with mortgage rates hovering around the highest levels in more than a decade.
David Paul Morris | Bloomberg | Getty Images
Mortgage applications rose last week, the first time since June 24 that volume increased on a weekly basis, according to the Mortgage Bankers Association. Total mortgage demand increased 1.2%, boosted by the 30-year average fixed mortgage rate posting its largest weekly decline since 2020. Home purchase orders increased 1% from the previous week, while requests for refinancing increased 2%, According to MBA. The latest mortgage data comes amid concerns about weak consumer confidence and a slowing US economy, as the Federal Reserve tightens monetary policy in hopes of calming the hottest inflation since the early 1980s.
– CNBC’s Su-Lin Tan, Melissa Rybko and Lisa Rizzolo contributed to this report. NBC News also contributed.
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