U.S. Stocks Fall for a Second Day As Investors Weigh Geopolitical Tensions, New Batch of Earnings

Tiger Newspress2022-08-02

U.S. Stock futures fell Tuesday morning as Geopolitical tensions.

Futures tied to the Dow Jones Industrial Average were 196 points lower, or 0.52%. S&P 500 futures slid 0.71%, and Nasdaq 100 futures dropped 0.96%. Shares of Caterpillar are weighing on Dow futures after the company reported earnings that missed revenue expectations, sending the stock down more than 3% before the bell.

Traders are also awaiting another raft of earnings from companies such as Starbucks, PayPal and Advanced Micro Devices.

Tuesday’s moves came after the major averages fell on the first day of August. The S&P 500 shed 0.28% to end at 4,118.63 while the Nasdaq Composite inched 0.18% lower and closed at 12,368.98. The Dow Jones Industrial Average slipped 46.73 points, or 0.14%, to end at 32,798.40. Last month, the major averages posted their biggest one-month gains since 2020.

“I think for sure it remains a bear market bounce,” Kevin Simpson of Capital Wealth Planning told on Monday. ”... I think it was awesome the way the markets traded in July, but I think we’re not through any type of capitulation. The headwinds are just too rampant.

On the economic data front, investors this week are awaiting the July nonfarm payrolls report slated for release Friday for further clues into the state of the economy and the job market.

The economy has reached peak inflation, as shown by the recent drop in oil prices, according to a Tuesday tweet from Jim Cramer.

“The speed of the decline in oil i think puts the lie to the notion, again, that we have not had peak inflation,” Cramer wrote. “The inflationist as simply refuse to believe it could have peaked regardless of the evidence.”

Data pointing to a global manufacturing downturn caused oil prices to slip further from their highs this week, though they recovered somewhat since.

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    2022-08-03
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  • PearlynCSY
    2022-08-03
    PearlynCSY
    Stocks fall a second day on U.S.-China tensions, hawkish comments from Fed leaders. Stocks slumped on Tuesday as investors weighed increased tensions between the U.S. and China with House Speaker Nancy Pelosi’s Taiwan visit and reacted to comments from Federal Reserve presidents about the central bank’s path forward. Stocks wavered early in the afternoon, reacting to multiple comments from regional Fed presidents who all threw cold water on the idea that the central bank will be done raising rates or move them lower anytime soon.In political news, Pelosi is expected to spend the night in Taiwan, Reuters reported. Leading up to the trip, Chinese officials threatened to act if Pelosi moved forward with the visit. Pelosi is the most senior U.S. official to meet with Taiwan leaders o
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