Here are the main events taking place on Wednesday which may affect trade.
PAYPAL: Shares rose more than 10% in premarket trading. The online payment company has entered into an information sharing agreement with activist investor Elliott Investment Management to evaluate capital return options.
PayPal also appointed Blake Jorgensen as CFO. In addition, product manager Mark Britto will retire at the end of the year. A search is underway for his successor.
HOUSEHOLD CREDIT CARD DEBT INCREASES IN SECOND QUARTER, HIGHEST JUMP IN OVER 20 YEARS
PayPal reported net income of $6.8 billion, up 9% year over year in the second quarter and a net loss of $341[ads1] million, or 29 cents per diluted share. Last year, the company recorded net income of $1.18 billion, or $1.00 per diluted share.
AIRBNB: Shares of the vacation rental company were more than 7% lower in premarket trading after the company gave a weaker-than-expected outlook that overshadowed otherwise strong results. The company reported revenue of $2.1 billion in the second quarter, up 58% year-over-year and 73% higher than Q2 2019. The number was in line with Wall Street estimates. Airbnb expects third-quarter revenue of $2.78 billion to $2.88 billion, beating analysts’ estimates of $2.77 billion, according to Refinitiv IBES. The company also announced that it will buy back up to $2 billion of its stock.
AIRBNB SEES 30% MORE NIGHTS BOOKED FOR SUMMER TRAVEL COMPARED TO PRE-PANDEMIC
EARNINGS: Another busy day is in store for earnings, with a major focus on healthcare. CVS Health, AmerisourceBergen, Moderna and Regeneron Pharmaceuticals report ahead of the opening bell. Some major insurers will report in the afternoon, including Met Life and Allstate. Also look for hotel and casino gaming MGM Resorts, online auctioneer Ebay and household products maker Clorox to name a few.
NYC RESTAURANTS STRUGGLE TO BE PRE-PANDEMIC PROFITS
FINANCIAL DATA: The Institute for Supply Management releases its non-manufacturing PMI for July. This key gauge of services sector activity is expected to slip for the fourth month in a row to 53.5, the lowest since May 2020. Remember, any reading above 50 indicates an expanding services sector. The Commerce Department is also expected to say manufacturing orders rose 1.1% in June, following May’s 1.6% rise.
CLICK HERE TO READ MORE ABOUT FOX BUSINESS
STOCK REPORT: The Energy Information Administration will release its inventory report for last week. Crude oil inventories are expected to fall by more than 600,000 barrels, following a much steeper-than-expected decline of 4.523 million barrels last week. Look for a build of just over one million barrels in distillate supplies (fuel oil, diesel), and a draw of more than 1.6 million barrels in gasoline stocks.