FOX Business’ Madison Alworth talks to a NYC restaurant director on difficulties facing the restaurant industry and what business owners are facing throughout the country.
Here are the key events taking place on Wednesday that could impact trading.
PAYPAL: Shares were surging more than 10% in premarket trading. The online payments company has entered an information sharing agreement with activist investor Elliott Investment Management to evaluate capital return alternatives.
PayPal also appointed Blake Jorgensen as chief financial officer. Additionally, chief product officer Mark Britto will retire at year-end. A search is underway for his successor.
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PayPal reported net revenues 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 recorded net income of $1.18 billion, or $1.00 per diluted share.
PayPal Holdings shares are trading higher ahead of Wednesday’s session. (REUTERS/Amir Cohen/File Photo / Reuters Photos)
AIRBNB: Shares of the vacation rental company were more than 7% lower in premarket trading after the company issued 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, higher than analysts’ estimates of $2.77 billion, according to Refinitiv IBES. The company also announced it will repurchase up to $2 billion of its shares.
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A CVS Pharmacy sign is shown in Mount Lebanon, Pa. (AP Photo/Gene J. Puskar / AP Newsroom)
EARNINGS: Another busy day coming up for earnings, with a big focus on health care. CVS Health, AmerisourceBergen, Moderna, and Regeneron Pharmaceuticals report ahead of the opening bell. Some big insurance companies will report in the afternoon, including Met Life and Allstate. Also watch for hotel and casino play MGM Resorts, online auctioneer Ebay, and household products maker Clorox to name a few.
Close-up on a woman working at 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 gauge of services sector activity is expected to slip for a fourth straight month to 53.5, the lowest since May 2020. Recall that any reading above 50 indicates an expanding services sector. Also, the Commerce Department is expected to say manufacturing orders jumped 1.1% in June, trailing May’s 1.6% increase.
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INVENTORY REPORT: The Energy Information Administration will release its inventory report for last week. Crude stockpiles are expected to fall by more than 600,000 barrels, following a much steeper-than-expected decline of 4.523 million barrels the previous week. Watch for a build of just over one million barrels in distillate supplies (heating oil, diesel fuel), and a draw of more than 1.6 million barrels in gasoline inventories.
