Here are the key news, trends, and analysis investors need to start their trading day:
1. Wall Street collapses after closing another day of record highs
Traders operate on the floor of the New York Stock Exchange (NYSE) on July 21, 2021.
Brendan McDermid | Reuters
US futures were under pressure on Tuesday, a day after the Dow Jones Industrial Average, with the S&P 500 and Nasdaq posting a fifth straight session in profits and another day with record highs. The Federal Reserve will hold its two-day July meeting on Tuesday and Wednesday with the future for interest rates, bond purchases and inflation on the agenda. Big Tech’s earnings are expected to arrive after the bell on Tuesday. The reporting season in the second quarter was stronger than expected. According to FactSet, 88% of the S&P 500 companies have so far had a positive EPS surprise. If this is the final record, it would be the highest since FactSet started tracking the metric in 2008.
2. Big tech wins start after the closing bell
Tim Cook, CEO of Apple (L), Satya Nadella, CEO of Microsoft (C) and Sundar Pichai, CEO of Google.
3. Tesla tops $ 1 billion in quarterly net income for the first time
SpaceX founder and Tesla CEO Elon Musk looks on when he visits the construction site of Tesla’s Gigafactory in Grünheide near Berlin on May 17, 2021.
Michele Tantussi | AFP
Tesla stock rose about 1.5% in the premarket on Tuesday, the morning after the electric automaker reported earnings of $ 1.45 per share on sales of $ 11.96 billion. Both exceeded expectations. Tesla has topped quarterly net income of $ 1 billion for the first time, ten times more than the same period last year. The company also reported a $ 23 million impairment loss related to the bitcoin it holds on its balance sheet. The world’s largest cryptocurrency collapsed more than 40% in the second quarter, leaving Tesla’s holdings worth much less than the nearly $ 2.5 billion at the end of the first quarter. During Tesla’s post-earnings conference call, CEO Elon Musk said he likely won’t appear on future calls unless he has “something really important” to communicate.
4. GE, UPS top estimates for earnings and sales
Larry Culp, CEO, General Electric
Scott Mlyn | CNBC
General Electric’s shares rose more than 3.5% in pre-trading hours after the troubled conglomerate’s earnings and sales beat estimates in the second quarter. GE also said Tuesday that it expects free cash flow of $ 3.5 billion to $ 5 billion in 2021, up from its previous forecast of $ 2.5 billion to $ 4.5 billion. Free cash flow is closely monitored by investors as a sign of the health of GE’s business and ability to pay off debt.
UPS CEO Carol Tome meets with workers
United Parcel Service shares fell about 2% in the premarket after the delivery giant announced second-quarter earnings and revenue on Tuesday that beat estimates. Under its CEO Carol Tome, UPS has curbed costs and focused on high-margin packages as part of its “better not bigger” strategy.
5. House Selection Board to Attack Capitol Building to hold first hearing
U.S. Representative Liz Cheney (R-WY) with Chairman Bennie Thompson (D-MS) and members of the Special Committee to Investigate the Jan. 6 attack on the U.S. Capitol speak after meeting House Speaker Nancy Pelosi ( D-CA) with reporters on July 1, 2021 at the Capitol in Washington, USA.
Jonathan Ernst | Reuters
The House of Representatives special committee investigating the deadly pro-Trump invasion of the U.S. Capitol will hold its first hearing on Tuesday. The panel will hear directly from four law enforcement officers about their struggles in defense of the Capitol from the mob. Wyoming Representative Liz Cheney, who was ousted from GOP leadership after refusing to criticize Donald Trump for falsely claiming the 2020 elections were rigged, is one of two Republicans appointed to the committee to date . The other Republican is Rep. Adam Kinzinger of Illinois. House spokeswoman Nancy Pelosi previously turned down two of GOP leaders Kevin McCarthy for the committee.
– Reuters contributed to this report. Follow all market activity like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.