Pre-markets down on US-China tension
US stock futures fell in today’s pre-market following tensions between the US and China. Market participants will also be watching Q2 2022 results closely, as 270 companies are expected to release their quarterly figures.
Speaker of the United States House of Representatives Nancy Pelosi is expected to arrive in Taiwan today and spend the night there. China has expressed strong reservations against Pelosi’s visit to Taiwan.
Chinese authorities say Taiwan is part of its territorial integrity while the US government has responded that the Biden administration will not bow to the Chinese threat. Reuters reported that Chinese fighter jets flew and warships remained close to the line dividing the Taiwan Strait.
Pelosi would become the first House Speaker to visit Taiwan since Newt Gingrich in 1997. Following the US-China geopolitical dispute, the benchmark’s return 10-year US treasury bond fell around 2.54% as investors opted for safe-haven government bonds.
On the M&A front, Canada Toronto-Dominion Bank TD decided to buy a US-based investment bank Cowen inc. COWN in an all-cash, $1.3 billion deal. Canada’s banking sector is dominated by six big brothers who control almost 90% of the market share. The acquisition of Cowen is an effort by The Toronto-Dominion Bank to expand its business in the high-growth US market.
A plethora of companies will release their results today. Oil refining and marketing bigwig Marathon Petroleum Corp. MPC posted quarterly earnings of $10.61 per share, beating Zacks consensus estimate of $9.17 per share. The company posted revenue of $54.24 billion, beating Zacks’ consensus estimate of 63.08%.
Caterpillar inc.CAT reported quarterly earnings of $3.18 per share, beating Zacks consensus estimate of $3 per share. The heavy equipment maker posted revenue of $14.25 billion, missing Zacks’ consensus estimate by 0.34%. The company said rising material and freight costs were partially offset by higher prices and increased sales.
Global luxury hotel chain giant Marriott International Inc.’MAR’s quarterly earnings of $1.80 per share beat the Zacks consensus estimate of $1.59 per share. Marriott posted revenue of $5.34 for the quarter ended June 2022, beating Zacks’ consensus estimate of 7.41%.
Major electronics manufacturing Eaton Corporation plc ETN reported quarterly earnings of $1.87 per share, beating Zacks consensus estimate of $1.82 per share. The company posted revenue of $5.21 billion, missing Zacks’ consensus estimate by 0.29%.
The big companies reporting after the closing bell today are restaurant retailers Starbucks Corp. SBUX, microchip developer Advanced Micro Devices Inc. AMD, internet-based payment platform PayPal Holdings Inc. PYPL and crude oil producer Occidental Petroleum Corp. OXY.
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Advanced Micro Devices, Inc. (AMD): Free Inventory Analysis Report
Caterpillar Inc. (CAT): Free Inventory Analysis Report
Marriott International, Inc. (MAR): Free Inventory Analysis Report
Starbucks Corporation (SBUX): Free Inventory Analysis Report
Eaton Corporation, PLC (ETN): Free Stock Analysis Report
Occidental Petroleum Corporation (OXY): Free Stock Analysis Report
Toronto Dominion Bank The (TD): Free Stock Analysis Report
Marathon Petroleum Corporation (MPC): Free Stock Analysis Report
Cowen Group, Inc. (COWN): Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
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