FOX Business’ Madison Alworth talks to a New York restaurateur about the challenges facing the restaurant industry and the challenges facing business owners across the country.
Here are the highlights from Wednesday may affect trade.
PAYPAL: Shares rose more than 10% in premarket trading. The online payments company entered into 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 the end of the year. Currently, the search for his successor is underway.
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PayPal reported net income $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 had 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 down more than 7% in premarket trading after it issued a weaker-than-expected forecast that overshadowed otherwise strong results. The company reported revenue of $2.1 billion in the second quarter, up 58% year over year and up 73% from the second quarter of 2019. The figure 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 that it will buy back up to $2 billion in shares.
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A CVS Pharmacy sign is displayed in Mount Lebanon, Pa. (AP Photo/Gen J. Puskar/AP Newsroom)
EARNINGS: Another busy day for earnings comes with a big focus on health. CVS Health, AmerisourceBergen, Moderna and Regeneron Pharmaceuticals report ahead of the opening bell. Some major insurance companies, including Met Life and Allstate, will report in the afternoon. Also look at hotel and casino games MGM Resorts, online auctioneer Ebay and household products manufacturer Clorox.
Close-up of a woman working as a waitress in a restaurant and holding a notebook (iStock/iStock)
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ECONOMIC HISTORY: The Institute for Supply Management released non-manufacturing PMI for July. This key indicator of service sector activity is expected to fall to 53.5 for the fourth consecutive month, the lowest reading since May 2020. Recall that any indicator above 50 indicates that the service sector is expanding. Also, the Commerce Department is expected to say manufacturing orders rose 1.1% in June, following a 1.6% increase in May.
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INVENTORY REPORT: The Energy Information Administration will release its inventory report last week. Crude oil reserves are expected to decline It fell by more than 600,000 barrels, a sharper-than-expected decline of 4.523 million barrels the previous week. Note the rise in distillate stocks (heating fuel, diesel fuel) of just over a million barrels and gasoline stocks of over 1.6 million barrels.
