U.S. equities finished mixed in choppy trading amid a host of data, events and cautious Fedspeak driving sentiment. Geopolitical tensions continue to run high, as Speaker Nancy Pelosi touched down in Taiwan despite warnings from the Chinese government that doing so would undermine relations with the U.S. Meanwhile, earnings continued in earnest, as Dow member Caterpillar fell despite beating earnings expectations in part due to supply chain issues and unfavorable currency movements. Shares of Uber jumped despite posting a large loss, as its revenues rose a whopping 105% from the year prior. In light economic news, job openings declined for the third-straight month, and the hiring rate dipped slightly. Treasuries finished noticeably lower as yields rose, and the U.S. dollar gained solid ground, while crude oil prices were also higher, but gold declined. Europe finished predominantly to the downside ahead of Thursday's Bank of England meeting, while markets in Asia were also mostly lower amid the U.S.-China frictions.
The Dow Jones Industrial Average declined 402 points (1.2%) to 32,396, the S&P 500 Index fell 27 points (0.7%) to 4,091, and the Nasdaq Composite decreased 20 points (0.2%) to 12,349. In moderate volume, 4.7 billion shares of NYSE-listed stocks were traded, and 4.6 billion shares changed hands on the Nasdaq. WTI crude oil increased $0.53 to $94.42 per barrel. Elsewhere, the gold spot price decreased $8.90 to $1,778.80 per ounce, while the Dollar Index increased 0.8% to 106.20.
Dow member Caterpillar Inc (CAT $184) reported adjusted Q2 earnings-per-share (EPS) of $3.18, topping the $3.01 FactSet estimate, as revenues rose 10.5% year-over-year (y/y) to $14.3 billion, roughly in line with the Street's forecast. The company noted favorable price realization and higher sales volume as drivers of the revenue growth, while unfavorable currency impacts partially offset those impacts. The company's operating margin dipped slightly to 13.6% from 13.9% a year ago. The Caterpillar CEO said, "Our team delivered another good quarter with double-digit top line and adjusted profit per share growth despite ongoing supply chain challenges. Our second-quarter results reflect healthy demand across most of our end markets." Shares fell.
Uber TechnologiesInc (UBER $29) reported a quarterly loss of $1.33 per share in Q2, but it was unclear if it was comparable to the FactSet estimate of a $0.27 loss. Revenues rose 105.5% y/y to $8.1 billion, north of the Street's forecast of $7.4 billion. The loss included a $1.7 billion headwind due primarily to revaluation of investments including Uber's Aurora, Grab, and Zomato stakes. The loss also includes $470 million in stock-based compensation expense. Gross bookings grew 33% y/y, trips grew 24%, and monthly active platform consumers grew 21%. Uber CFO Nelson Chai noted, "We became a free cash flow generator in Q2, as we continued to scale our asset-light platform, and we will continue to build on that momentum. This marks a new phase for Uber, self-funding future growth with disciplined capital allocation, while maximizing long-term returns for shareholders." Uber was solidly higher.