Markets Murky as Geopolitical Tensions Bubble Up

House Speaker Nancy Pelosi's trip to Taiwan is ruffling feathers with China

Digital Content Manager
Aug 2, 2022 at 11:41 AM
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The stir that House Speaker Nancy Pelosi's scheduled visit to Taiwan has created shows little sign of quieting, as investors cycle out of equities for the second day in a row. The Dow Jones Industrial Average (DJI) was last seen down 194 points amid Caterpillar's (CAT) revenue miss, while the S&P 500 Index (SPX) is also sitting in the red at midday. Meanwhile, the Nasdaq is struggling for direction ahead of several big earnings reports out of the tech sector.

Elsewhere, a dramatic drop in the June Job Openings and Labor Turnover Survey (JOLTS) to 10.7 million is also weighing on market sentiment, as the number came in well below the expected 11.14 million. Wall Street's "fear gauge" -- the Cboe Volatility Index (VIX) -- is on the rise, last seen up 1.2% and on track for its second straight win.

Continue reading for more on today's market, including:

  • Acquisition buzz boosts this bank stock. 
  • How Pinterest stock is shaking off a lukewarm earnings report. 
  • Plus, UBER surging on revenue beat; why FFIE is climbing higher; and the pharma stock taking a nosedive. 

mmc stats aug 2

Uber Technologies Inc (NYSE:UBER) is seeing a surge in options activity today. So far, 160,000 calls and 58,000 puts have been exchanged, which is 10 times the intraday average. The most popular position in the weekly 8/5 30-strike call, followed by the 29-strike call in the same series, with positions being opened at both. UBER was last seen up 13.9% to trade at $28.02, after the ride share company posted better-than-expected revenue and a return to positive cash flow for its second quarter. The stock has shed more than 36% in the past 12 months, though today's pop has it pacing for its first close above the 100-day moving average since mid-January. 

uber aug 2

One of the best performing stocks on the Nasdaq today is Faraday Future Intelligent Electric Inc (NASDAQ:FFIE). The equity was last seen up 29% at $2.58 after major shareholder FF Top Holding and FFIE executed a non-binding term sheet for a proposed convertible loan facility of the later yesterday, Aug. 1. The term sheet consists of potential senior secured convertible notes in a potential principal amount worth up to $600 million. The security is still a long way from its mid-July peak just below the $8 level, and year-to-date, it's lost 50.2%. 

One of the worst stocks on the Nasdaq today is Phantom Pharmaceuticals Inc (NASDAQ:PHAT). The stock was last seen down 29.1% at $6.43 after the company posted a second-quarter loss of $1.33. The company also saw a widening net loss of $50.9 from last year's $36.6 million net loss. The stock is heading back toward its June 16 record low of $6.09, with pressure at the 80-day moving average keeping a tight lid on shares. 

 

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