Stock futures fall after first trading day in August

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Oil giant BP raises dividend as quarterly profits soar on high commodity prices

British oil giant BP raised its dividend on Tuesday as it posted record profits in the second quarter, benefiting from a surge in commodity prices.

Underlying replacement cost gain in the second quarter, used as a proxy for net income, came in at $8.5 billion. The skyrocketing profit allowed BP to increase its quarterly shareholder dividend by 10%, raising it to 6,006 cents per common share.

European equities are retreating, following global risk-off sentiment

European markets retreated slightly on Tuesday, tracking risk-off sentiment globally as investors assess whether last month’s rally should continue.

The pan-European Stoxx 600 fell 0.7% in early trading, with base funds losing 1.8% to losses as nearly all sectors and major exchanges plunged into the red.

Earnings continue to be an important driver of individual price movements. BP, Ferrari, Maersk and Uniper were among the major European companies to report before the bell on Tuesday.

Chinese stocks plunge as tensions rise over Pelosi . visit

Stock futures open flat

Stock futures opened flat in overnight trading Monday.

Futures linked to the Dow Jones Industrial Average were up 0.06%, or 21 points. S&P 500 futures and Nasdaq 100 futures fell 0.06% and 0.01%, respectively.

— Samantha Subin

The benefit from here is limited in the coming months, says Truist’s Lerner

Investors overly focused on equities should consider using current market conditions to shorten their positions, as the advantage to equities going forward is limited, said Keith Lerner, Truist’s co-chief investment officer.

According to Lerner, the upside potential for the market in the coming months is likely to be limited in the 3% to 5% range, but the downside could exceed that amount.

“The market has undoubtedly been very resilient and maybe it will stay that way for a bit, but we don’t see the risk reward as compelling here,” he said.

This is by no means an indication of the top of the market and stocks could rise, but it is an opportunity to reassign exposure after last month’s strong market rally, Lerner added.

Samantha Subin

Pinterest shares 21% pop as Elliott Management reveals top investor position

Pinterest shares rose more than 21% after the company posted stronger-than-expected user numbers and Elliott Management revealed it is the largest shareholder in the image-sharing company.

Activist investor Elliott said in a statement it is “convinced of the ability to create value” at Pinterest, calling the social media company a “highly strategic company with significant growth potential.”

“As the market-leading platform at the intersection of social media, search and commerce, Pinterest occupies a unique position in the advertising and shopping ecosystems, and CEO Bill Ready is the right leader to oversee Pinterest’s next growth phase,” wrote Elliott.

Despite the stock move, Pinterest missed second-quarter estimates on the top and bottom lines. Monthly active users for the period exceeded estimates by 2 million.

— Samantha Subin

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