Uber Scores, Pelosi Touches Down | The Daily Peel | 8/3/22

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Market Snapshot

Stonks led off the day lower on recession fears and rising China tensions amidst Speaker Pelosi’s rumored trip to Taiwan. The 10-year yield moved significantly higher yesterday, up around 2.75%. Bill Ackman is grumbling again, but this time for the Children. WTI Crude closed just shy of $95 as gas prices continue to slide at one of the fastest rates in decades.

At the closing bell, markets were at session lows, with all sectors in the negative; the Dow was down 1.22%, the Nasdaq lost just 0.16%, and the S&P lost 0.66%.

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What's Ripe

Uber ($UBER) — Finally, Uber has pivoted towards the environment that is the reality in which we live. Their free cash flow numbers are finally at a level that the Street absolutely loved after their earnings call.

Revenues also beat analysts’ estimates, a sign of a return towards normal operations following basically a pandemic packed with anti-ride sharing sentiments.

On earnings news, $UBER ripped higher by 18.90%.

Pinterest ($PINS) — Shares of the online platform soared on Tuesday, even after top and bottom line misses on Aug 1st.

The reason: user numbers are through the roof, and activist hedge fund Elliot Management has pledged its love for the brand and its new CEO.

Shares of $PINS ripped yesterday, closing up 11.56%.

What's Rotten

Molson Coors ($TAP) — Molson Coors declared its quarterly earnings, and the news was not well received by investors.

Sure, sales were down half a percent compared to last quarter, but that’s not the reason why the stock cratered yesterday.

The brewer is having its lunch eaten by smaller, craft breweries and rising commodity costs. These challenges chopped their bottom line number by 88%.

On poor earnings, shares of $TAP fell 10.46%.

Caterpillar Inc ($CAT) — Shares of $CAT fell 5.86% yesterday, and as a Dow component, this weighed heavily on the overall index.

Caterpillar makes machinery and engines that are used in construction all over the world. This is by nature cyclical, and as the economy slows, so will $CAT’s business. While they did experience consistent North American demand, they did note that the rest of the world appears to be slowing down.

The numbers actually weren’t that bad this quarter; they barely missed on revenues and actually beat bottom line expectations. However, a softening global economy and associated guidance saying just that sent shares lower.

Thought Banana

The Dog Days of Summer — Here we are, smack dab in the Dog Days of Summer.

For those of you unfamiliar with this terminology, the dog days run from early July until about mid-August. This year, the star system Sirius’ rising runs from Jul 3rd until Aug 11th. These dog days were typically linked with hot, sultry weather.

This is also typically a slower time of year in the office. Many people take vacation days in July and early August, trying to sneak in that bender on a trip to Mykonos or get some downtime on a weekender in Napa.

This is a good time of year for families, as school is typically still out of session for summer break and demands on parents at work are less stringent.

Think about stonks. There is at least an inkling of a feeling that equities markets are less volatile in the summer. Fridays during the dog days tend to have some of the lowest trading volumes compared to any other time of the year.

While some of us are in coast mode, others are still out there hustling. If you’re an entrepreneur, you don’t get a chance to take time off often. The summer is hard because people you’re trying to contact to conduct business are unavailable… because they’re out enjoying the summer on their vacations.

If you’re a student, this time of year is when your summer away from the classroom is wrapping up. It’s a great time to relax before really hitting the books.

If you’re an intern, your time at your internship is wrapping up; it’s time to prep to return to everyday life and hope that you impressed enough people to garner a return offer.

Labor Day weekend, the unofficial end of summer, is right around the corner. As we get closer, it’s a good time to ask ourselves: are we ready to pick up the pace?

Wise Investor Says