Here are five important things investors should know to start the trading day:
1. Rebound
Stocks went up a bit on Tuesday after falling for the previous three days. The Dow Jones Industrial Average rose by 0.76%, ending at 38,997.66. The S&P 500 saw a bigger gain of 1.04%, finishing at 5,240.03, and the Nasdaq Composite went up by 1.03%, ending at 16,366.85.
Also, Japan’s Nikkei 225 had its best day since October 2008 with a 10.2% increase. This was a turnaround from a 12.4% drop the day before, which was its worst day since Black Monday in 1987.
2. Uber’s Big Success
Uber had a great second quarter. The company earned 47 cents per share on $10.7 billion in revenue, beating Wall Street’s expectations of 31 cents per share and $10.57 billion in revenue. Uber also had 156 million monthly active users and handled 2.77 billion trips.
This is up from 137 million users and 2.28 billion trips a year ago. Additionally, revenue and gross bookings for delivery increased by 16%, and gross bookings for mobility went up by 23%.
3. War of Words
Microsoft, along with CrowdStrike, is responding to Delta Air Lines. Mark Cheffo, who represents Microsoft, recently sent a letter to Delta’s attorney, David Boies. In the letter, Cheffo stated that Microsoft had offered free assistance to Delta after the global IT outage caused many flight cancellations.
According to the letter, Microsoft staff offered help every day from July 19 to July 23, but Delta turned them down. Cheffo also criticized Delta for its slower recovery compared to other airlines, suggesting that Delta had not updated its IT systems for the benefit of customers, pilots, or flight attendants.
This response comes after Delta announced it plans to seek damages from Microsoft and CrowdStrike for the outage. CrowdStrike has denied responsibility, with lawyer Michael Carlinsky stating on Sunday that the company was not to blame for the cancellations.
4. Walz Joins the Team
Vice President Kamala Harris announced on Tuesday that she has chosen Minnesota Governor Tim Walz as her running mate for the November election. Harris praised Walz in a campaign message, calling him a proven leader with a strong record of achievements for Minnesota families.
She believes he will bring the same leadership to their campaign and to the vice presidency. Walz also confirmed his acceptance of the role on social media, saying he’s “all in.” After the announcement, they made their first joint appearance at a rally in Philadelphia. Walz expressed his excitement, saying, “I couldn’t be prouder to be on this ticket. Thank you for bringing back the joy.”
5. Price Hike
Disney is raising its streaming service prices. Starting in mid-October, most Disney+, Hulu, and ESPN+ plans will cost $1 to $2 more per month, according to a press release. Disney+ basic will be $9.99, and premium will be $15.99.
Hulu plans with ads will cost $9.99, while those without ads will be $18.99. Even Hulu’s most expensive plans with live TV channels will go up by $6 per month. ESPN+ will now cost $11.99 per month. These price increases are part of Disney’s effort to encourage customers to choose bundled options.
Summary
The stock market is recovering with gains in major indexes. Uber had a successful quarter with more users and revenue. Microsoft and CrowdStrike are responding to Delta’s claims about a recent outage. Kamala Harris has picked Tim Walz as her running mate, and Disney is raising streaming prices.
