Here are five key things that could impact Tuesday’s trading.
INSURER MOVES OUT: GEICO has reportedly closed all 38 of its agent offices in California, laid off hundreds of employees and will no longer sell insurance through telephone agents in the state.
Californians can still obtain GEICO policies in the state, but only through a computer or a mobile device, posing a challenge for those who are not technologically proficient.
The precise reasons for the closures in California and massive layoffs remain unclear. Fox Business has reached out to the company for more information.
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In a statement to the Sacramento Bee, a company spokesperson declined to elaborate on the changes, but clarified that GEICO was not leaving the Golden State.
“We continue to write policies in California, and we remain available through our direct channels for the more than 2.18 million California customers presently insured with us,” the company told the paper.
The California Department of Insurance, meanwhile, told Fox Business it is following the situation closely.
“We are monitoring to make sure consumers are protected,” CDI said in a statement.
UPFRONT FARES: Uber will allow drivers to see how much they could earn from a round trip and where they will drop the users off before they accept a ride request.
The company’s CEO, Dara Khosrowshahi, announced last week that the app would introduce “upfront fares” so drivers can know how much they will be paid before the trip while introducing more “flexible” options that let drivers see requests in other areas.
“With Upfront Fares, we’ve completely reimagined the way drivers accept rides,” Khosrowshahi said in a statement. “Our new trip request screen makes it easier for drivers to decide if a trip is worth their time and effort by providing all the details – including exactly how much they’ll earn and where they’re going – upfront.”
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The factors that will be calculated into the total shown to drivers before they accept the trip will be based on base fares, estimated time to complete the trip, distance from pickup, and price surges, according to Uber. Moreover, the fare will be adjusted in real-time if the rider changes their address or for increased traffic along the route.
Tips will not be factored into the total before the driver accepts an offer. The company began testing this feature in February, and this month will expand it to 30 different areas, according to Reuters.
“We partnered with Mastercard, Branch and Marqeta on a new Uber Pro debit card and checking account that will help drivers save on gas, fees, and more,” Khosrowshahi also announced last week.
JOLT FOR JOBS: The latest Job Openings and Labor Turnover (JOLT) Survey is scheduled for release at 10 am Tuesday.
The Labor Department is expected to say that there were 11 million job openings available at the end of June, down from a higher-than-expected 11.254 million in May, and down a third month from a record 11.855 million in March.
The number of jobs that need to be filled is nearly double the number of people looking for work (5.91 million in June per BLS).
This elevated level of openings signals an extremely tight labor market as employers struggle to fill positions amid supply shortages and a slowing economy.
2Q EARNINGS: Second-quarter earnings season continues Tuesday morning with investors parsing numbers from Dow member and heavy equipment maker Caterpillar, ride-hailing pioneer Uber Technologies, oil and gas refiner Marathon Petroleum, hospitality giant Marriott International and low-cost airline JetBlue to name a few.
|UBER||UBER TECHNOLOGIES INC.||24.60||+1.15||+ 4.90%|
|MPC||MARATHON PETROLEUM CORP.||90.32||-1.34||-1.46%|
|MAR||MARRIOTT INTERNATIONAL INC.||159.57||+0.75||+ 0.47%|
|JBLU||JETBLUE AIRWAYS CORP.||8.59||+0.17||+ 2.02%|
|SBUX||STARBUCKS CORP.||84.91||+0.13||+ 0.15%|
|PRU||PRUDENTIAL FINANCIAL INC.||99.65||-0.34||-0.34%|
|AMD||ADVANCED MICRO DEVICES INC.||96.78||+2.31||+ 2.45%|
|PYPL||PAYPAL HOLDINGS INC.||88.56||+2.04||+ 2.35%|
|ABNB||AIRBNB INC.||111.20||+0.22||+ 0.20%|
|EA||ELECTRONIC ARTS INC.||130.87||-0.36||-0.27%|
The afternoon will lead off with results from the world’s largest coffeehouse chain Starbucks, life and health insurer Prudential Financial, computer chip maker and Intel rival Advanced Micro Devices, digital payments pioneer PayPal, online lodging marketplace Airbnb, and video game maker Electronic Arts among many others.
Nearly three-fifths of the S&P 500 have reported April-through-June results, and the numbers are topping expectations.
TAKE A BREATH: US stocks closed slightly lower Monday to start a new month of trading after finishing July with their best month since 2020.
Major indexes spent much of Monday’s session flitting between gains and losses before falling in the afternoon.
The S&P 500 fell 11.66 points, or 0.3%, to 4118.63. The Dow Jones Industrial Average shed 46.73 points, or 0.1%, to finish at 32798.40. The technology-focused Nasdaq Composite Index lost 21.71, or 0.2%, is 12368.98.
US stocks mounted a furious recovery in recent weeks, boosted by positive signals from earnings and expectations that the Federal Reserve may not need to raise interest rates as aggressively as once thought, spurring a rally in government bonds alongside stocks.
Monday’s weakness in stock futures suggested investors are likely taking a breather after the S&P 500 finished Friday with a 9.1% gain for July. He added that traders are in “wait and see” mode ahead of Friday’s jobs report.
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Economists surveyed by The Wall Street Journal expect the US economy to have added 250,000 jobs in July, down from 372,000 in June. Strong employment is the remaining pillar propping up consumer sentiment and stopping the economy from seeing a “full-blown recession,” said Aoifinn Devitt, chief investment officer of Moneta.