Stock Market Today 8/3: Stocks Rise as Investors Await Key Economic Data

Stock Market Today 8/3: Stocks Rise as Investors Await Key Economic Data ...

Following two consecutive trading days of losses, stocks were set for a moderately positive start on Wednesday as investors looked beyond House Speaker Nancy Pelosis' controversial visit to Taiwan and anticipated important economic data.

Futures tied to the Dow Jones Industrial Average were 0.4 percent, or 104 points higher, while S&P 500 futures were up 0.35%, and Nasdaq 100 futures were up 0.02 percent as investors reviewed Pelosis' controversial Asia trip and prepared for Friday's job report.

Oil prices fell about 1% in early trade on Wednesday, reversering gains from the previous session ahead of a meeting with OPEC+ producers that will determine how much global supply will be released throughout the fall.

On Wednesday, Pelosi met Taiwan president Tsai Ing-wen, who thanked Pelosi for her support for democratic values and said she was willing to work with the United States on security in the Taiwan Straits.

Beijing, which claims Taiwan as its territory, had warned Pelosi and the US administration not to travel there, with Chinese officials threatening unspecified military countermeasures in response to her visit.

Taiwan is a democratic self-ruled island that China perceives as a fledgling island, and Beijing has been vocal about its opposition to the Pelosis visit.

Investors this week are waiting for the July nonfarm payrolls report, which will be released on Friday, for further insights on the economy and the job market. Following the 372,000 increase in June, analysts expect 250,000 new jobs to be added to the economy.

Both data points will be critical for investors as they chart the decline in the US economy.

Robinhood (HOOD) - Get Robinhood Markets Inc. Reportshares were higher in premarket trading after the company announced that it would lay off nearly a quarter of its full-time employees for the second year this year.

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As a result of a major slowdown in trading activity, a new online brokerage that was once synonymous with meme stock trading and other high-risk retail bets on stocks has announced that it would reduce some 23% of its workforce.

In a statement, Robinhoods CEO Vlad Tenev said the previous round of layoffs in April did not help the business lower costs.

Starbucks (SBUX) - Get Starbucks Corporation Reportshares were also higher in premarket trading Wednesday after the coffee-chain giant said customer demand in the United States is still rising, despite increased labor expenditure and inflationary pressures weighing on costs.

Global same-store sales in the three months ended July 3 increased by 3% compared to the same period last year, while those in the chains in the China market fell by 44% as a result of renewed Covid-19 related shutdowns and other restrictions during the period.

Increased employee salaries and training as well as higher prices partially offset the costs, but Starbucks said prices are around 5% higher than they were a year ago.

Airbnb (ABNB) - Get Airbnb Inc. Reportshares, meanwhile, were down more than 6% as a weaker-than-expected outlook overshadowed otherwise good quarterly results.

As people continued to book suburban rentals despite hosts raising prices, the San Francisco-based company raised $2.1 billion in revenue in the three months ended June, compared to the same period last year.

Airbnb reported a profit of $379 million in the period, surpassing analyst expectations for a profit of $295 million compared to a loss in the year-earlier quarter.

CVS Health (CVS) - Get Yum! Brands Inc. Report, MGM Resorts (MGM) - Get MGM Resorts International Report, and eBay (EBAY) - Get eBay Inc. Report.

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