August Begins with Corporate Earnings Season

Stock futures are showing a slight decline on Tuesday as Wall Street enters the deep waters of corporate earnings season for August. The S&P 500 saw a strong closing on Monday, reaching a peak not seen in 16 months, and has shown consistent growth over the past five months.

Stocks to Watch

Here are the stocks expected to make moves on Tuesday:

Arista Networks (ANET)

Arista Networks, a provider of data center networking hardware, reported second-quarter earnings surpassing expectations. The company also projected third-quarter revenue between $1.45 billion and $1.5 billion, which is higher than analysts' forecasts of $1.39 billion. As a result, the stock experienced a significant jump of 14% in premarket trading.

ZoomInfo Technologies (ZI)

Shares of ZoomInfo Technologies, a provider of database information for corporate sales and marketing teams, took a hit with a 17% drop. The company revised its full-year revenue guidance, expecting revenue between $1.225 billion and $1.235 billion. This is lower than its previous forecast of $1.275 billion to $1.285 billion. Chief Financial Officer Cameron Hyzer acknowledged the challenges in the current macro environment, noting that further deterioration in buyer sentiment and behavior could potentially offset their improvements.

Harmonic (HLIT)

Harmonic, a manufacturer of fiber-optic and other telecommunications systems, witnessed a 12% decline as it provided an outlook for the third quarter and full year that fell below analysts' estimates.

Stay tuned as the corporate earnings season unfolds and more developments impact the market.

Avis Budget Group Exceeds Expectations in Q2

Avis Budget Group (CAR), a leading car-rental company, has reported higher-than-expected profit for the second quarter. CEO Joe Ferraro attributed this success to taking advantage of a robust and growing demand for travel. As a result, the company's stock rose by 1.6%.

CVS Health to Make Significant Job Cuts

CVS Health (CVS) experienced a dip in premarket trading following an announcement that it will be cutting 5,000 jobs. The decision, revealed in a staff memo reviewed by The Wall Street Journal, is part of CEO Karen Lynch's plan to position CVS as a pioneer in a once-in-a-generation transformation in healthcare.

BP Reports Decline in Q2 Net Income

U.S.-listed shares of BP (BP) saw a 0.7% increase after the British energy giant disclosed a decrease in second-quarter net income. Profits fell to $1.79 billion from $9.26 billion compared to the previous year. While underlying replacement-cost profit for the quarter amounted to $2.59 billion, down from $8.45 billion last year and lower than analysts' estimates, BP has taken steps to address this setback. The company plans to repurchase $1.5 billion worth of stock over the next three months and has raised its dividend by 10%.

Upcoming Earnings Reports

Tuesday will witness the release of earnings reports before the opening bell from Pfizer (PFE), Merck (MRK), Caterpillar (CAT), Uber Technologies (UBER), and Altria (MO). Later in the day, Advanced Micro Devices (AMD), Starbucks (SBUX), and Electronic Arts (EA) are scheduled to announce their reports after markets close.