August 19, 2022

5 things to know before stock markets open on Wednesday

Here are the most important news for investors to start their trading day:

1. Stocks look to shake off repeated losses

NEW YORK, NEW YORK – JULY 25: Traders work on the floor of the New York Stock Exchange (NYSE) on July 25, 2022 in New York City. Stocks were slightly higher in morning trade as investors weighed the upcoming Federal Reserve meeting on Wednesday. (Photo by Spencer Platt/Getty Images)

Spencer Platt | Getty Images News | Good pictures

2. Nancy Pelosi departs from Taiwan

Televisions broadcast news reports on US House Speaker Nancy Pelosi’s visit to Taiwan on Tuesday, August 2, 2022, in Taipei, Taiwan.

Lam Yik Fee | Bloomberg | Good pictures

Speaker of the House Nancy Pelosi It left Taiwan at 6 a.m. ET on Wednesday, marking the end of a brief but controversial stop on the self-ruled island, which China claims as its own territory. While there, the California Democratic Party He met President Tsai Ing-wen of Taiwan And signaled his support for Democratic Island. “Our [congressional] “The delegation is here to send a clear message: America stands with Taiwan,” Pelosi said, according to NBC News. After repeatedly warning Pelosi against going to Taiwan, Beijing banned the import of various Taiwanese products into China, including biscuits, grapefruit and frozen horse. It suspended exports of sand, and the country’s military also began conducting air and sea exercises around Taiwan.

3. CVS Health raises full-year forecast

A pedestrian walks through the parking lot of a CVS Health Corp store on August 2, 2019 in Oakland, California.

Michael Short | Bloomberg | Good pictures

Shares CVS Health After the company rose on Wednesday It raised its full-year profit outlook And topped Wall Street’s expectations with its second-quarter results. CVS now expects adjusted earnings of between $8.40 and $8.60 per share, up from its previous guidance of $8.20 to $8.40. The company, which also owns health insurer Aetna in addition to its drugstores, reported second-quarter sales that rose 11% year over year to $80.64 billion, compared to Refinitiv’s estimate of $76.37 billion. Adjusted earnings per share of $2.40 for the quarter beat analyst estimates of $2.17.

Before Wednesday’s opening hour, the owner of Taco Bell Yum Brands reported Mixed quarterly results.

4. Tuesday night earnings review

CEO and Airbnb Inc. during the New York Economic Club luncheon at the New York Stock Exchange (NYSE) on Monday, March 13, 2017. Brian Chesky, co-founder of

Michael Nagel | Bloomberg | Good pictures

Several notable companies reported quarterly numbers after Tuesday’s close. Here’s a quick breakdown of how they did it:

  • Airbnb Better-than-expected Q2 revenue and earnings nearly hit estimates, while delivering third-quarter guidance above Street estimates. Shares fell more than 7% in premarket trading. There’s CNBC’s Sophia Pitt Here’s a full review.
  • Advanced Micro DevicesSecond-quarter profit and sales topped analysts’ expectations, but the chip designer’s Q3 revenue forecast came in slightly below estimates. Its stock fell about 6% in premarket trade. Read CNBC tech reporter Kiff Leswing’s report Here’s the full story on earnings.
  • StarbucksQuarterly results beat top and bottom-line estimates, and interim CEO Howard Schultz pointed out that the coffee chain’s customers haven’t pulled back on their spending or traded down to cheaper goods despite persistently hot inflation. Shares rose nearly 2% in the premarket. CNBC’s Amelia Lucas Earnings are fully recovered here.
  • PayPal Second-quarter revenue rose 9% year over year to $6.81 billion, beating analysts’ forecasts. Shares of the fintech firm, which has entered into an information-sharing deal on value creation with activist Elliott Management, rose nearly 13% in pre-market trade. According to A full review of the quarter From CNBC’s Jordan Novette.

5. Mortgage applications rise for the first time in 5 weeks

Homes in Hercules, California, USA on Tuesday, May 31, 2022. With mortgage rates at their highest levels in more than a decade, homebuyers are facing an affordability crisis.

David Paul Morris | Bloomberg | Good pictures

Mortgage applications rose last week, according to the Mortgage Bankers Association, the first time since June 24 that rate increased week-to-week. Total mortgage demand rose 1.2%, helping the average 30-year fixed mortgage rate post its biggest weekly drop since 2020. Applications to buy a home rose 1% compared to the previous week, while refinancing applications rose 2%, MBA said. The latest mortgage data comes amid concerns about weakening consumer confidence and a slowing U.S. economy as the central bank tightens monetary policy in hopes of cooling the hottest inflation since the early 1980s.

— CNBC’s Su-Lin Tan, Melissa Repko and Lisa Rizzolo contributed to this report. NBC News also contributed.

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