Here are the key news, trends, and analysis investors need to start their trading day:
1. Wall Street is falling after another day of record high closings
Traders operate on the floor of the New York Stock Exchange (NYSE) on July 21, 2021.
Brendan McDermid | Reuters
2. Big tech earnings 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 shares 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 plunged 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-revenue 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 a company’s business and ability to repay 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 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 with House Speaker Nancy Pelosi ( D-CA) with reporters on July 1, 2021 at the Capitol in Washington, USA.
Jonathan Ernst | Reuters
The House 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 Rep 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. The other Republican is Rep. Adam Kinzinger of Illinois. House spokeswoman Nancy Pelosi previously turned down two of GOP leader Kevin McCarthy’s recommendations for the committee – militant Trump supporters Jim Jordan from Ohio and Jim Banks from Indiana.
– 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.