Stock futures rise as Wall Street tries to bounce back from repeated losing sessions

OPEC+ is set to increase oil production marginally

OPEC and its allies agreed on Wednesday to raise oil production by a small amount, 100,000 barrels a day, in response to President Joe Biden’s visit to Saudi Arabia last month. During the visit, Biden aimed to persuade the group’s leader to pump more oil to help the U.S. economy and global supply. A small rise is seen as a rejection.

– Carmen Reinicke

Starbucks shares rise after earnings release

Shares Starbucks The coffee chain gained nearly 2% in pre-market trading after reporting quarterly earnings on Tuesday after the bell. The company beat expectations on revenue and earnings as demand for US soft drinks grew even amid high inflation.

“We actually had record customer numbers and record average weekly sales,” Starbucks Chief Financial Officer Rachel Ruggeri said on CNBC’s “Squawk Box” last quarter.

– Carmen Reinicke

Moderna rises above revenue expectations

Shares Modern After the maker of the Covid-19 vaccine rose nearly 4% in pre-market trade Published quarterly results It beat Wall Street’s expectations for both profit and revenue. Additionally, the company announced a $3 billion share buyback, and maintained its full-year outlook.

– Carmen Reinicke

Potential earnings revisions are a risk in the second half, says RBC’s Galvacina

This earnings season, results have generally come in above Wall Street’s expectations, showing that companies are weathering current economic conditions better than analysts expected, RBC head of U.S. equity strategy Lori Calvasina wrote in a note Wednesday.

“The good news for the U.S. stock market is that there continues to be evidence of a rebound in corporate earnings,” Galvacina said. “The bad news for US equities is that further downward earnings revisions are at risk as we move deeper into the 2nd half of the year.”

So far, estimates for revenue and earnings for the second half of 2022 and the full year of 2023 have declined.

However, Galvacina says the strength of corporate earnings this quarter means any coming economic downturn will be short and shallow. That’s good for stocks right now, but could set them up for further volatility.

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“This has been supportive of share prices over the past few weeks, but going forward, it also tells us that the rally in stocks remains weak as further downward earnings revisions are possible as 2023 comes into view,” he said.

– Carmen Reinicke

Profit on CVS income

Shares CVS Health The company rose more than 3% in premarket trading after the announcement Better-than-expected quarterly earnings Before the start time. The company also raised its earnings outlook for the year, saying health services will help boost sales.

– Carmen Reinicke

Pelosi leaves Taiwan

House Speaker Nancy Pelosi departed Taiwan on Wednesday, raising tensions with China and unsettling financial markets.

Hair He met Taiwan President Tsai Ing-wen on Wednesday. China, which claims the disputed island as part of its territory, has stepped up military exercises in the Taiwan Strait between its visits. The S&P 500 fell 1% this week as traders worried about the implications of Pelosi’s trip for China relations. But the market was set for a relief rally on Wednesday following her exit.

– John Mellay

AMD shares fall on weak earnings guidance

Shares of AMD fell 5% in premarket trading after the chipmaker posted third-quarter earnings. The guidance was below analyst expectations.

AMD said it expects third-quarter revenue of $6.7 billion, below Refinitiv’s forecast of $6.82 billion.

The disappointing guidance overshadowed better-than-expected revenue and earnings in the second quarter.

Fred Imbert

A sense of caution lingers in European markets; Avast grew by 42%

European shares Wednesday was mixed, continuing the cautious regional trend this week.

Pan-European Stoxx 600 In early trade, they fell 0.2%, autos fell 1.5%, and technology stocks gained 1.2%.

It was a busy day in Europe with Commerzbank, SocGen, BMW, Banco BPM, Siemens Healthineers, Veolia and Wolters Kluwer among the companies reporting before the bell.

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Shares of Czech cyber security firm Avast surged 42% after Britain’s competition regulator provisionally cleared its $8.6 billion sale to its US counterpart. NortonLifeLock.

Don’t focus on what Fed speakers say, focus on the data, says Art Hogan

Despite the “parade of Fed speakers”, B. According to Art Hogan, chief market strategist at Relay Financial, investors don’t have to worry about that.

“I think investors should pay more attention to what the data is telling us than what each individual Fed speaker, whether they’re a voter or not, is saying about what our expectations should be,” Hogan said on CNBC’s “Squawk Box. Asia.”

However, Fed officials said they were able to change expectations about where central bank policy was headed.

St. Louis Federal Reserve President James Bullard said on Tuesday that the central bank should raise rates, And the Fed funds rate should be 3.75%-4% by the end of 2022. “We still have a long way to go” in fighting inflation, San Francisco Fed President Mary Daly said. Chicago Fed President Charles Evans said another big rate hike is possible, something he believes can be avoided.

After last week’s meeting, some had expected the Fed to reach 3.25%-3.5% before targeting 2023, Hogan said.

“I think the parade of Fed speakers this week has done a good job of pulling it back and tempering those expectations,” he said.

– Off Abigail

If inflation peaks, these stocks are poised for a rebound, Jeffries says

A recession may be on the horizon, and future earnings are predicted to decline. If inflation also peaks, as some analysts expect, a combination of factors could favor one category of stocks, Jeffries says.

Based on a list of metrics that include high profitability, fair valuations and good cash flow, Jefferies prepared a screen of such stocks that investors could buy. Pro subscribers can read the story here.

– Weissen Don

PayPal Rises in Earnings, Share Buyback Announcement

PayPal shares rose more than 11% after hours. Paying agency Beat analysts’ revenue and earnings estimates For the second quarter and provided upbeat full-year guidance. PayPal also announced a $15 billion share buyback plan.

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Share buybacks provide a way for companies to increase their return on equity and increase the value of the stock. Especially when the market is experiencing steep price declines this year. The company launched the $10 billion project four years ago.

Elliott Management said it has a $2 billion stake in the payments company. PayPal announced it has entered into an information sharing agreement on value creation with an activist investor.

– Tanaya Machil

Despite Fedspeak about fighting inflation, a ‘frustration cycle’ is developing, says Luthold’s Jim Paulson

Jim Paulson, chief investment strategist at the Leuthold Group, said despite the Federal Reserve’s “lip service to fight inflation” by tightening monetary policy, there are several factors that could cause the market to enter an “evolving easing cycle.”

Bond yields have reached a significant rate cut, the dollar is finally rolling and junk spreads have retreated, he said in a note to investors late Tuesday.

“The media, policymakers and investors are primarily focused on the battle against inflation and how aggressively the Fed should raise rates,” Paulson said. “Yet, with real economic growth already crawling and evidence of inflation easing building, the case for the central bank to tighten further at its September meeting is falling fast.”

“Investors should place appropriate weight on the leading nature of economic policies,” he added. “Tightening today means lower real and nominal growth tomorrow.”

– Tanaya Machil

MatchGroup shares fall after hours

Shares of dating app operator Competition team The company fell as much as 23% after reporting revenue of $795 million Second quarter, compared to FactSet estimates of $803.9 million. The competition also provided weak guidance on adjusted operating income and revenue for the current quarter.

– Tanaya Machil

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