Stocks continue their big rebound

By CNN Business

Updated 11:55 a.m. ET, July 22, 2021
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12:43 p.m. ET, July 21, 2021

United doesn't see any slowdown in travel due to Delta variant 

From CNN Business' Chris Isidore

United Airlines CEO Scott Kirby said he doesn't see any signs that rising Covid cases are putting the brakes on the recovery of US air travel.

"We don’t see anything in our bookings data," Kirby said in an interview on CNBC early Wednesday. "Every day our bookings get stronger and stronger. I think the most likely and logical outcome is we continue largely unabated." United reported another quarterly loss after the bell Tuesday but said it expects to be profitable in the final two quarters of this year.

"We’re a confident as we can be," the CEO said about the company's return to profitability. "There’s certainly more uncertainty than normal given Covid and the Delta variant. We think by far the most likely outcome is we continue on this demand recovery."

One thing that would help United and other major US airlines is if European travelers could come to the US again. US travelers can go to Europe, but there are restrictions on Europeans coming here. Although Kirby said he understands the desire to put safety first, he said that data and science suggests it would not increase risks to Americans if travel resumed.

"We’re not going to prevent the Delta variant from coming to United States by closing those borders because it’s already here," he said. "I think the logic dictates we should be getting that open."

Shares of United were up about 2% in premarket trading.

8:36 a.m. ET, July 21, 2021

People are loving Chipotle's new quesadillas

From CNN Business' Jordan Valinsky

Cauliflower rice and quesadillas are proving to be a success for Chipotle (CMG).

The recently added menu items helped the chain boost its bottom line, with its second-quarter sales soaring nearly 40%. Chipotle said in its earnings call Tuesday that sales at stores open at least a year grew 31% thanks in part to people coming in for lunch.

CEO Brian Niccol said on the earnings call that quesadilla sales, which is only available on its app, "appears in about 10% of our transactions." Cauiflower rice was also "successful bringing in new guests," he said.

Chipotle shares soared more than 5% in premarket trading.

7:05 a.m. ET, July 21, 2021

Jamie Dimon awarded hundreds of millions of dollars to stay at JPMorgan

From CNN Business' Rob McLean

JPMorgan Chase (JPM) really, really wants CEO Jamie Dimon to stick around.

The investment bank awarded Dimon 1.5 million stock options on July 20 — priced at the average price of JPMorgan's stock on Tuesday, according to a filing with the Securities and Exchange Commission. Today, that's an award worth more than $220 million.

But here's the catch: Dimon won't be able to exercise the options. They'll start to vest on July 20, 2026, and he must hold the shares until July 20, 2031. By then, the shares could be worth much more -- especially if it has a few more years like this one. JPMorgan's stock is up nearly 18% in 2021.

Read more here.

6:43 a.m. ET, July 21, 2021

Inflation is here. The Delta variant could make it worse

From CNN Business' Matt Egan

The biggest question facing the US economy is when skyrocketing consumer prices will come back to earth. The emergence of the Delta variant only deepens that inflation mystery.

The hope is that inflation will cool off as the economy fully reopens, allowing supply to catch up with increasing demand.

But the summer surge in Covid-19 cases is complicating that thinking. That's because the Delta variant threatens to both ease pricing pressures in the short term -- and worsen them in the long run.

Read more here.

6:22 a.m. ET, July 21, 2021

US stocks poised to open higher

Stocks are continuing their rally Wednesday after closing higher Tuesday. They rebounded from a miserable trading session at the start of the week when the Dow logged its worst day since October.

Here's where things stand as of 6:00 am ET:

6:05 a.m. ET, July 21, 2021

Netflix falls short on subscriber growth and confirms plans to get into gaming

Netflix (NFLX) posted sluggish subscriber growth when it reported earnings Tuesday, and forecast bigger gains ahead. But Wall Street isn't satisfied.

The streaming service said it has 209 million subscribers globally after adding a little more than a million subscribers in the second quarter of 2021. That beat the company's own expectations for the quarter, even though it was a mostly low bar.

Yet Netflix's stock took an immediate hit in after-hours trading with its forecast for the third quarter coming in softer than the 5.5 million subscribers analysts were expecting. 

Netflix said its projecting a growth of 3.5 million for the next quarter.

Read more here.

6:07 a.m. ET, July 21, 2021

Robinhood targets July 29 debut as a public company

From CNN Business' Matt Egan

Robinhood is planning to make its big debut as a public company next week.

The trading app is expected to start trading on the Nasdaq Stock Market on July 29, a person familiar with the matter told CNN Business. The timing of the debut could still change, the person cautioned.

Robinhood is aiming to raise up to $2.3 billion in an initial public offering that could value the controversial company at $35 billion. That means the IPO could make Robinhood more valuable than about two-thirds of the companies in the S&P 500.

Read more here.