Stock futures sink ahead of earnings, Pelosi trip


Stock futures were lower early Tuesday as investors awaited another rush of corporate earnings and monitored geopolitical tensions ahead of U.S. House Speaker Nancy Pelosi’s trip to Taiwan.

Near 6:30 a.m. ET, S&P 500 futures were down 0.9%, Dow futures were off 0.6%, and Nasdaq futures were off 1.1%.

On Monday, the major averages were lower, but little-changed, as August kicked off with a lackluster start to trading after July saw the S&P 500 gain over 9% for its best month since November 2020.

U.S. stock futures were taking their cues from international markets, with Europe’s major indexes red across the board as Hong Kong’s Hang Seng fell 2.3% overnight and stocks in Shanghai lost over 2.2%. Japan’s Nikkei fell 1.4% overnight.

On the earnings front, Uber (UBER) shares were soaring in pre-market trade after the company reported a better-than-expected quarter across the board.

The company reported revenue of $8.1 billion on gross bookings of $29.1 billion. Revenue had been expected to come in at $7.4 billion. Adjusted EBITDA also beat estimates, totaling $364 million against expectations for $266 million. Uber also said it recorded $382 million in free cash flow during the second quarter.

Uber shares were up as much as 9% before the bell on Tuesday.

The price of crude oil was also lower early Tuesday, down over 1% with WTI crude futures trading below $93 a barrel. The price of gas in the U.S. has now fallen 17% since its mid-June peak to below $4.17 a gallon.

Patrick de Haan at GasBuddy said Monday the price of gas will likely fall below $4/gallon nationally within the next 10 days.

In crypto markets, bitcoin (BTC-USD) was down over 2% early Tuesday to trade back below $23,000. A broad move lower in crypto markets was underway Tuesday morning amid the risk off sentiment in financial markets.

Crypto markets were also under pressure following a late Monday hack of the Nomad protocol, which lost nearly all of its funds totaling about $200 million.

In individual stock news, shares of Pinterest (PINS) were up over 18% in pre-market trading after activist investor Elliott Management confirmed a stake in the social media company that makes it Pinterest’s largest shareholder.

Elliott also backed Pinterest’s new CEO Bill Ready, calling Ready “the right leader to oversee Pinterest’s next phase of growth.”

This news overshadowed a quarterly report from Pinterest that showed a decline in users as social media players continue to struggle in a shifting digital ad market.

The Pinterest logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 20, 2021. REUTERS/Brendan McDermid

Elsewhere on the earnings front, investors were awaiting results from Caterpillar (CAT) and DuPont (DD) among other companies set to report results before the opening bell.

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