U.S. stock futures fell Tuesday, as investors worried about inflamed geopolitical tensions between Beijing and Washington ahead of House Speaker Nancy Pelosi’s expected visit to Taiwan. Treasury yields also slid Tuesday, with the benchmark 10-year Treasury note trading as low as 2.516%, as investors flocked to the perceived safety of U.S. government debt. Equities in mainland China and Hong Kong tumbled Tuesday, too, and the yen, considered a safe haven currency, further strengthened. On Monday, the major Wall Street stock indexes finished in the red, breaking three-day losing streaks.
Chinese warplanes flew near the median line in the Taiwan Strait, Reuters reported Tuesday citing a source. Beijing has warned Pelosi against visiting Taiwan, a self-ruled island that China claims as its territory. Pelosi is on a tour of the region, but her expected visit to Taiwan has not been officially announced. Tensions between China and Taiwan have been on the rise in recent years.
Shares of Uber Technologies jumped Tuesday after the ride-hailing and food delivery company reported better-than-expected quarterly revenue. Uber’s second-quarter sales checked in at $8.07 billion, well ahead of the $7.39 billion analysts projected, according to Refinitiv. However, Uber posted a net loss of $2.6 billion for the quarter, which includes a $1.7 billion hit related to revaluation of its investments in Grab Aurora and Zomato. Losses from operations in the quarter ended June 30 totaled $713 million, but the company did report positive free cash flow of $382 million. In May, CEO Dara Khosrowshahi told employees in a memo that cash flow positivity was becoming an important near-term goal.
British oil giant BP and U.S. shale producer Devon Energy reported strong quarterly profits and raised their dividend payouts, as elevated crude prices this year helped the companies to boost their capital return programs. BP, which on Tuesday posted second-quarter profit of $8.5 billion, hiked its quarterly dividend by 10% to 6.006 cents per ordinary share. Devon Energy, which on Monday turned in better-than-expected Q2 results on the top and bottom lines, announced a 22% increase to its dividend payout. Using a fixed-plus-variable dividend strategy, Devon’s quarterly payout now stands at $1.55 per share, up from $1.27.
Pinterest shares soared around 18% in premarket trading Tuesday, a day after the social media company’s quarterly earnings and revenue came in below Wall Street forecasts, and current quarter guidance was weaker than expected. While Pinterest’s monthly active user decline wasn’t as bad as feared, the company’s results nonetheless show the challenging operating environment for social media name right now. Pinterest’s stock may be reacting to news that activist investor Elliott Management on Monday revealed it is the company’s largest shareholder, touting the “value-creation opportunity” it sees.