Finance

A sign is posted outside of the PayPal headquarters in San Jose, California.
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Check out the companies making headlines in extended trading.
Match Group — Shares of the dating app operator tumbled as much as 23% after the company reported revenue of $795 million for the second quarter, compared with FactSet estimates of $803.9 million. Match also issued weak guidance around adjusted operating income and revenue for the current quarter.

Solaredge Technologies – The solar-power stock tanked nearly 13% in after-hours trading following disappointing quarterly results. Solaredge reported an EPS of 95 cents, below analysts’ expectation of 88 cents per share, according to FactSet. Revenue also came in shy of estimates.
PayPal — The payments giant’s shares soared 11% after hours following stronger-than-expected second-quarter results and an increase in its forecast. PayPal also revealed it has entered into an information-sharing agreement with Elliott Management.
SoFi — Shares climbed more than 7% after the personal finance company reported a beat on the top and bottom lines. “While the political, fiscal, and economic landscapes continue to shift around us, we have maintained strong and consistent momentum in our business,” SoFi CEO Anthony Noto said in a statement.
Airbnb — Shares of Airbnb fell about 10% in extended trading after the vacation home rental company posted weaker-than-expected revenue for the second quarter. The company also reported more than 103 million booked nights and experiences, the largest quarterly number ever for the company but short of StreetAccount estimates of 106.4 million.
Advanced Micro Devices — AMD’s shares fell nearly 5% despite reporting strong quarterly earnings and revenue, after the chipmaker issued a weaker-than-anticipated third-quarter forecast. The chipmaker said it expected $6.7 billion in revenue during the current quarter, plus or minus $200 million. Analysts expected $6.83 billion.

Caesars Entertainment — The casino company lost about 2% after it reported a quarterly loss of 57 cents per share, which was 74 cents lower than analysts had expected. It also reported a Caesars Digital loss of $69 million, compared with $2 million for the comparable prior-year period.
Robinhood — Robinhood slid about 2% after reporting it will cut its headcount by some 23%, after previously laying off 9% in April, and posting a decline in monthly active users and assets under custody for the second quarter. The investing app operator released its results a day ahead of schedule.
Starbucks — The coffee chain saw shares edge higher by more than 2% after it reported better-than-expected quarterly results, despite lockdowns in China weighing on its performance. Within the U.S., however, net sales rose 9% to $8.15 billion and same-store sales grew 3%.
— CNBC’s Sarah Min and Yun Li contributed reporting.

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An Uber banner on the New York Stock Exchange on the day of Uber’s IPO, May 10, 2019.
Source: NYSE

Check out the companies making headlines in midday trading Tuesday.
Uber Technologies — Uber shares popped 18.9% after the ride-hailing giant reported a quarterly revenue that beat analyst expectations. The company’s revenue came in at $8.07 billion, topping a Refinitiv consensus forecast of $7.39 billion. Still, Uber also reported a big loss per share.

Pinterest — Shares of the image-sharing company surged 11.5% on the back of better-than-expected user numbers. Activist investor Elliott Management also confirmed separately that it’s Pinterest’s top investor and said it has “conviction in the value-creation opportunity” at the company. All that said, Pinterest’s earnings and revenue missed estimates for the second quarter, and the company gave weak guidance for the third quarter.
Marathon Petroleum — Shares advanced 3.7% after the refining company reported second-quarter earnings that exceeded profit and revenue estimates, boosted by the surge in oil prices.
Gartner — Shares of the research and consulting company gained 7.7% after Gartner topped earnings and revenue estimates for the previous quarter. Wells Fargo also initiated coverage of Gartner with an overweight rating.
Caterpillar — Caterpillar shares slipped 5.8% after the company missed revenue expectations in the second quarter. The industrial giant said its top line was hurt by its exit from Russia and supply chain issues.
Cowen – The brokerage’s stock jumped 8.4% after TD Bank announced a deal to buy Cowen for $39 per share, or roughly $1.3 billion. TD said the all-cash deal should close in the first quarter of 2023. The U.S.-traded shares of TD dipped by less than 1%.

Molson Coors — Shares of the beverage company slid more than 10% after Molson Coors released its latest quarterly results. The company’s earnings were in line with analyst expectations, according to Refinitiv, while earnings were roughly in line with estimates. Molson Coors said that many beer-drinking customers are trading down to cheaper options.
Avis Budget — The vehicle rental company’s stock slipped 4.7% despite a better-than-anticipated quarter. Avis Budget reported earnings of $15.94 per share excluding items on revenues of $3.24 billion. Analysts polled by Refinitiv expected a profit of $3.17 billion.
ZoomInfo Technologies — ZoomInfo jumped 11.2% after reporting better-than-expected quarterly results. The company also raised its guidance for the full year.
— CNBC’s Jesse Pound, Sarah Min and Yun Li contributed reporting

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COVID-19 WAS never going to be good for the poor. At first, however, the disease was not associated with rising inequality. Richer economies tended to suffer larger declines in GDP per person than many poor ones in 2020—and within those countries hefty stimulus packages protected the poorest from penury. As the pandemic wore on, though, its effects on global inequality shifted. Richer countries enjoyed better access to vaccines than poorer ones, and were more able to sustain spending on programmes to support incomes and bolster recoveries. The net effect of the pandemic has been to raise inequality between countries, back to the levels of the early 2010s on some measures. Thus the long decline in global inequality that began around 1990 has come to an end—and gaps between rich and poor now look likely to widen, as poor countries take longer to recover from covid. Yet the causes of inequality’s resurgence are not universally bleak. Paradoxically, part of the explanation lies in increasing incomes among the formerly impoverished.To understand why, consider the two different forms of inequality researchers look at: gaps that occur within a country and those between countries. From the 1980s through the 2000s, inequality rose within most countries (including many in the emerging world) as rich Americans, Britons, Chinese and so on did better than their poorer compatriots. The contribution of this within-country dynamic was swamped, however, by the diverging fortunes of rich and poor countries as a whole. Because poorer countries were growing faster than richer ones—and massive ones like China and India were doing especially well—the net effect of changes across the world economy was a sharp decline in global inequality.Progress then ground to a halt in the decade before the pandemic. Shifts to the distribution of income within countries ceased to push inequality higher (indeed, in some recent years within-country shifts served to reduce global inequality on net). But this generally welcome trend occurred alongside much more halting progress in the closing of income gaps between countries. In the 2000s, for example, an economy at the 30th percentile of the global income distribution grew two percentage points faster on an average annual basis than did America, in terms of GDP per person. In the 2010s, by contrast, GDP per person at the 30th percentile grew slightly slower than in America. As a consequence, measures of global inequality showed very little improvement, if any, from about 2014 until the eve of the pandemic.During the pandemic, vaccines and more generous rich-world stimulus widened the gap between countries. Worse still, reckons the World Bank, the burden of income losses in poorer countries fell disproportionately on those at the bottom of the income spectrum. As a result, the increase in global inequality reflected both the widening gap between rich and poor countries as well as increased inequality within poor economies. Developing countries now face gloomier economic prospects. Scarring effects of the pandemic, including forgone schooling and investment, stand to constrain growth, as do heavy debt burdens and the challenges posed by Russia’s war in Ukraine. The IMF reckons that by 2024, output across the emerging world will probably remain more than 5% below the pre-pandemic trend, while that in rich economies will be less than 1% below trend (and output in America will be above it).Yet higher global inequality is also the outcome of a happier development. Recent work by Ravi Kanbur of Cornell University and Eduardo Ortiz-Juarez and Andy Sumner of King’s College London suggests that measured global inequality may rise in steady fashion in the years ahead for much the same reason it fell in recent decades. While the emerging world as a whole has gained ground on rich countries since the 1980s, the lion’s share of the reduction in global inequality over that time was attributable to the rapid economic growth of China and India. GDP per person in China now stands at roughly the global average—a milestone India may reach in the 2030s. As incomes in those countries cross that threshold, their continued growth will become a source of increasing, rather than decreasing, inequality. The enrichment of two countries that are home to more than a third of the world’s population is undoubtedly one of the big economic success stories of the past four decades. It has the unfortunate effect, however, of making the disappointing progress of those at the lower end of the income distribution more apparent.■All our stories relating to the pandemic can be found on our coronavirus hub. More

The typical worker who changed jobs between April 2021 and March 2022 saw earnings jump by 9.7% from a year earlier, after accounting for inflation, according to the Pew Research Center.
Meanwhile, the typical worker who stayed saw wages fall 1.7% after inflation.
U.S. Department of Labor data issued Tuesday suggests worker bargaining power may be cooling though it remains strong.

Morsa Images | DigitalVision | Getty Images

Many workers who changed jobs recently saw raises from their new paychecks outpace inflation by a wide margin — by nearly 10% or more, according to a new study by the Pew Research Center.
The typical American who changed employers in the year from April 2021 to March 2022 got a 9.7% bump in their “real” wages over a year earlier, according to Pew, a nonpartisan research organization, which analyzed federal labor data.

“Real” wages measure the change in a worker’s pay after accounting for inflation, which in June was at its highest level in more than 40 years.
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The figure cited by Pew represents the median, meaning half of workers who switched jobs got a net pay increase of 9.7% or more. The other half of job switchers got a smaller net raise or saw their net earnings decline.
Workers have been leaving their jobs at elevated rates since early 2021 in a trend known as the Great Resignation. Demand for workers boomed as the U.S. economy reopened broadly from its pandemic-era hibernation, leading businesses to compete by raising pay.
Workers who switched jobs reaped more of a financial benefit than those who stayed with their employer, Pew found. The median worker who remained at the same job from April 2021 to March 2022 saw their earnings fall by 1.7% after accounting for inflation, according to the study.

The dynamic of higher wage growth for job switchers relative to other workers was typical even before the Covid pandemic, but it’s likely stronger in the current labor market given how rapidly wages are rising, according to Daniel Zhao, senior economist at the career site Glassdoor.
“Workers have the most leverage when they go out and switch jobs and find another employer willing to reset their pay to the market level,” Zhao said.
Employers don’t have as much incentive to give big raises to employees who remain in their current roles, because they’re implying a willingness to stay put for their current pay, Zhao said. And employers generally give raises just once a year; someone who finds new employment essentially get an extra raise, he said.

Job market, still hot for now, may cool

A restaurant in Arlington, Virginia, was hiring as of June 3, 2022.
Olivier Douliery | AFP | Getty Images

However, U.S. Department of Labor data issued Tuesday suggests a slowdown in the labor market is underway — meaning workers’ bargaining power may wane, too.
Job openings, an indicator of employer demand for workers, fell to 10.7 million in June, a decrease of about 605,000 relative to May, the agency reported. It was the third consecutive month of declines since March, when there were almost 11.9 million job openings, a record — meaning there may be fewer opportunities to hop to a new job.
The Federal Reserve is raising borrowing costs in a bid to cool the economy and labor market to tame stubbornly high inflation. While it generally takes time for that monetary policy to work its way through certain sectors of the economy, employers may be pulling back on hiring plans in anticipation of a slowdown, Zhao said.
“It does seem like worker power during the last two years was likely strongest at the end of last year or beginning of this year,” Zhao said. “If the job market continues to cool, we should expect to see worker power cool, as well.”

Despite that relative cooldown, the labor market still appears to be tilted in workers’ favor. Job openings remain well elevated from historical levels despite the significant drop in June. Layoffs also declined, meaning employers are hanging onto their existing workers.
The level of voluntary departures (quits) — another barometer of worker power — declined slightly from May to June, though as with the level of job openings it is still high in historical terms. However, departures in two sectors — finance and real estate — fell back to pre-pandemic levels in June, suggesting the Great Resignation in those industries has come to an end, Zhao said.
“At this point in the labor market recovery, a decline in job openings isn’t concerning,” according to Nick Bunker, an economist at job site Indeed. “A pullback in hiring intentions absent a significant decline in actual hiring is a sign of a cooling labor market, but not one where the temperature is plummeting.
“The labor market remains hot,” he added. “A continued slow cooldown would be more than manageable.”

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Billionaire hedge fund manager Bill Ackman is taking a vocal stance against Visa, saying the credit card giant has the power to pressure Pornhub to remove child pornography from its site.
“My interest comes from the fact that I have four daughters,” Ackman said Tuesday on CNBC’s “Squawk Box.” “When you think about the worst harm — economic, physical, mental harm you can impact upon a human being — it’s having a child trafficked … video of the rape appear. I find it hard to talk about it.”

A federal judge in California on Friday denied Visa’s motion to dismiss a lawsuit by a woman who accuses the payment processor of knowingly facilitating the distribution of child pornography on Pornhub and other sites operated by parent company MindGeek.
The woman is suing Visa and MindGeek over a sexually explicit video her boyfriend filmed of her when she was 13. U.S. District Judge Cormac Carney in California denied parts of Visa’s motion to be dismissed from her claims.
“It is simple,” Carney said in his ruling. “Visa made the decision to continue to recognize MindGeek as a merchant, despite its alleged knowledge that MindGeek monetized child porn. MindGeek made the decision to continue monetizing child porn, and there are enough facts pled to suggest that the latter decision depended on the former.”
The Pershing Square CEO had called on Visa and Mastercard in late 2020 to temporarily withhold payments to Pornhub after a New York Times column by Nicholas Kristof brought the issue to light.
“Remarkably, the company, despite being entirely aware that there’s child pornography on these sites, they continue to provide payment services, until the Kristoff article, and then they shut down the sites overnight which would have bankrupted them,” Ackman said Tuesday. “Within a matter of weeks they re-authorized the merchants and started accepting payments again and the crime continues.”

Ackman said he has no economic stake in Visa, Mastercard or any payments company. He said he offered to help finance lawsuits philanthropically against Visa.
The hedge fund manager said he believes that this is one of the most egregious corporate governance failures he has witnessed and the company and its board could be faced with huge liabilities.
“It’s an extreme measure when Visa or Mastercard shuts down a merchant, but a merchant’s business is fundamentally illegal,” Ackman said. “There’s traditional breach of fiduciary duty when a company has a product or service that can cause harm.”
A Visa spokesperson told CNBC that the payments giant condemns sex trafficking, sexual exploitation, and child sexual abuse materials.
“This pre-trial ruling is disappointing and mischaracterizes Visa’s role and its policies and practices. Visa will not tolerate the use of our network for illegal activity,” the spokesperson said. “We continue to believe that Visa is an improper defendant in this case.” 

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Take a look at some of the biggest movers in the premarket:
Caterpillar (CAT) – The heavy equipment maker’s stock fell 3.7% in the premarket after its quarterly earnings beat forecasts but revenue was slightly short of consensus. Caterpillar’s sales were hurt by its exit from Russia as well as supply chain issues, and it also saw elevated costs during the quarter.

Uber Technologies (UBER) – Uber reported a quarterly loss of $1.33 per share, including the impact of a $1.7 billion headwind from a drop in the value of its investments. The ride-hailing company’s revenue did come in better than expected, and it turned cash flow positive for the first time. Its shares rallied 10.8% in premarket action.
Pinterest (PINS) – Pinterest shares soared 18.6% in premarket trading following its quarterly results and the news that activist investor Elliott Management is now the image-sharing site’s largest shareholder. Pinterest reported lower-than-expected earnings, but revenue was only slightly below forecasts and user numbers were somewhat better than expected.
Royal Caribbean (RCL) – Royal Caribbean fell 1.2% in premarket action after it announced the pricing of an upsized $1 billion debt offering. The cruise line operator will use the proceeds to refinance existing convertible notes.
Simon Property Group (SPG) – The shopping mall operator reported better-than-expected quarterly earnings, although its revenue was slightly below Street forecasts. Simon CEO David Simon said mall sales are doing well despite inflation concerns and that the company is positioned to do well in a potential recession. Simon shares added 2.2% in the premarket.
Cowen Group (COWN) – The financial services firm’s shares rallied 7.5% on news that it agreed to be acquired by TD Bank (TD) for $39 per share or $1.3 billion in cash.

Avis Budget (CAR) – The rental car company’s stock jumped 4% in premarket trading after it reported better-than-expected quarterly results. Avis Budget said it benefited from strong demand and “stringent” cost controls.
Arista Networks (ANET) – The cybersecurity firm reported better-than-expected profit and revenue for its most recent quarter and gave upbeat revenue guidance for the current period. Arista’s results got a boost from strong demand from cloud and data center customers, and its stock gained 5.4% in premarket action.
ZoomInfo Technologies (ZI) – The business software company’s stock surged 11.3% in the premarket after it reported better-than-expected quarterly results and raised its full-year guidance.

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Hackers yanked almost $200 million in crypto from Nomad, a so-called blockchain bridge.
Blockchain bridges allow users to transfer tokens from one network to another.
They’ve become a prime target for hackers seeking to swindle investors out of millions.

Billions of dollars of value have been wiped off the cryptocurrency market in recent months. Companies in the industry are feeling the pain. Lending and trading firms are facing a liquidity crisis and many firms have announced layoffs.
Yu Chun Christopher Wong | S3studio | Getty Images

Hackers drained almost $200 million in cryptocurrency from Nomad, a tool that lets users swap tokens from one blockchain to another, in yet another attack highlighting weaknesses in the decentralized finance space.
Nomad acknowledged the exploit in a tweet late Monday.

“We are aware of the incident involving the Nomad token bridge,” the startup said. “We are currently investigating and will provide updates when we have them.”
It’s not entirely clear how the attack was orchestrated, or if Nomad plans to reimburse users who lost tokens in the attack. The company, which markets itself as a “secure cross-chain messaging” service, wasn’t immediately available for comment when contacted by CNBC.
Blockchain security experts described the exploit as a “free-for-all.” Anyone with knowledge of the exploit and how it worked could seize on the flaw and withdraw an amount of tokens from Nomad — sort of like a cash machine spewing out money at the tap of a button.
It started with an upgrade to Nomad’s code. One part of the code was marked as valid whenever users decided to initiate a transfer, which allowed thieves to withdraw more assets than were deposited into the platform. Once other attackers cottoned on to what was going on, they deployed armies of bots to carry out copycat attacks.
“Without prior programming experience, any user could simply copy the original attackers’ transaction call data and substitute the address with theirs to exploit the protocol,” said Victor Young, founder and chief architect of crypto startup Analog.

“Unlike previous attacks, the Nomad hack became a free-for-all where multiple users started to drain the network by simply replaying the original attackers’ transaction call data.”
Sam Sun, research partner at crypto-focused investment firm Paradigm, described the exploit as “one of the most chaotic hacks that Web3 has ever seen” — Web3 being a hypothetical future iteration of the internet built around blockchain technology.
Nomad is what’s known as a “bridge,” a tool that lets users exchange tokens and information between different crypto networks. They’re used as an alternative to making transactions directly on a blockchain like Ethereum, which can charge users high processing fees when there’s lots of activity happening at once.
Instances of vulnerabilities and poor design have made bridges a prime target for hackers seeking to swindle investors out of millions. More than $1 billion in crypto assets has been stolen through bridge exploits so far in 2022, according to a report from crypto compliance firm Elliptic.
In April, a blockchain bridge called Ronin was exploited in a $600 million crypto heist, which U.S. officials have since attributed to the North Korean state. Some months later, Harmony, another bridge, was drained of $100 million in a similar attack.
Like Ronin and Harmony, Nomad was targeted through a flaw in its code — but there were a few differences. With those attacks, hackers were able to retrieve the private keys needed to gain control over the network and start moving out tokens. In Nomad’s case, it was much simpler than that. A routine update to the bridge enabled users to forge transactions and make off with millions’ worth of crypto.

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Source: NYSE

Check out the companies making headlines after the bell: 
Pinterest — Shares of the image-sharing company popped more than 19% despite a miss on the top and bottom lines as activist investor Elliott Management revealed it is now the largest investor. The company also beat monthly active user estimates.

Simon Property Group — Simon Property’s stock rose more than 1% in extended training despite a revenue miss. The REIT beat earnings estimates by 8 cents and shared earnings guidance for the full year that topped expectations.
Arista Networks — The cloud computing stock added 4.6% after hours following a beat on the top and bottom lines in the latest quarter. Arista Networks reported adjusted earnings of $1.08 per share on revenues of $1.05 billion and posted strong revenue guidance for the current quarter.
Avis Budget — The rental vehicle company gained 6% in extended trading on the back of a better-than-expected quarter. Avis Budget posted adjusted earnings per share of $15.94 per share on $3.24 billion in revenue. Analysts anticipated earnings of $11.48 a share on revenue of $3.17 billion.
ZoomInfo — Shares of ZoomInfo jumped 12% postmarket after topping earnings and revenue estimates for the most recent quarter. The company reported adjusted earnings of 21 cents per share on $267 million in revenue and lifted its guidance for the full year.

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