Updated from 5:57 a.m. ET
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Here are five things you must know for Tuesday, July 11:
1. -- U.S. stock futures traded lower on Tuesday, July 11, as Wall Street traded cautiously ahead of testimony later in the week from Federal Reserve Chair Janet Yellen, earnings from big U.S. banks, and economic data on U.S. inflation and retail sales.
European stocks traded mixed on Tuesday while Asian shares finished the session mostly higher.
Oil prices in the U.S. early Tuesday fell 0.8% to $44.05 a barrel.
The economic calendar in the U.S. on Tuesday includes the Job Openings and Labor Turnover Survey for May at 10 a.m. ET, and Wholesale Trade for May at 10 a.m.
Federal Reserve Gov. Lael Brainard will be the keynote speaker at the Conference on Normalizing Central Banks' Balance Sheets in New York at 12:30 p.m., while Minneapolis Fed President Neel Kashkari will be speaking at a moderated Q&A at the Minnesota Women's Economic Roundtable event in Minneapolis at 1:20 p.m.
PepsiCo Inc. ( PEP - Get Report)  , the soda and snacks giant, reported second-quarter earnings of $1.50 a share on revenue of $15.7 billion. Analysts expected earnings of $1.40 a share on revenue of $15.6 billion.
The stock rose 1.5% in premarket trading on Tuesday.
Pepsi is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells PEP? Learn more now.
2. -- Donald Trump nominated former Treasury official Randal Quarles as Federal Reserve Board vice chair of supervision, in charge of regulating big banks.
Quarles will have a voice in the Federal Open Market Committee's decisions on interest rates. The position also gives him a key role in the Trump administration's efforts to loosen the banking regulations imposed by the Dodd-Frank legislation that Congress passed in 2010.
U.S. banking giants such as Citigroup Inc. ( C - Get Report) , Bank of America Corp. ( BAC - Get Report) and Wells Fargo & Co. ( WFC - Get Report) are likely pleased by the decision since Quarles, the former Bush administration Treasury official, has publicly opined against "arbitrarily taking an ax to big banks and irreparably damaging the economy."

Quarles' nomination, which was widely expected, requires approval from the Senate.

Citigroup and Wells Fargo are holdings in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells C or WFC? Learn more now.

3. -- Shares of Snap Inc. (SNAP - Get Report) fell 2.9% to $16.50 in premarket trading on Tuesday, putting the stock further below its initial public offering price of $17. On Monday, the stock declined 1.1% to $16.99, finishing the session below the March IPO price for the first time.

The stock decline came after Credit Suisse analyst Stephen Ju maintained his outperform rating on Snap, but lowered his price target to $25 from $30. Ju cited his concerns over monetization rates.
TheStreet's founder Jim Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, said on CNBC that there's also the share lock-up expiration to consider. 

About 711 million shares could come unlocked later this summer and if they do the influx of supply could weigh on the stock price. Investors should wait for the lock-up period to pass before considering a position, Cramer said on CNBC's "Stop Trading" segment. 

More of What's Trending on TheStreet

4. -- Pearson PLC  ( PSO)  said Tuesday it will sell a 22% stake in Penguin Random House as part of the company's effort to trim its balance sheet and return cash to shareholders.

The deal will see the educational publisher raise about $968 million from the sale of the Penguin Random House stake to its venture partner, Bertelsmann SE & Co. About £300 million ($386 million) of the proceeds will be redirected to shareholders through a buyback program. 

"Combining Penguin with Random House has proved to be a great publishing success, as well as enabling some big cost savings. This has benefited readers, authors, and shareholders," said CEO John Fallon. "Today's deal enables Pearson to realize a significant amount of the value we've helped to create while continuing to be part of the world's biggest and best trade publisher. We will use the proceeds to maintain our strong balance sheet, invest in our business and return £300 million to shareholders."

Pearson shares were down more than 6% in London trading.

5. -- Rent-A-Center (RCII - Get Report) shares jumped more than 19% in after-hours trading on Monday following a Reuters report that said private-equity firm Vintage Capital had offered about $800 million to buy the rent-to-own company.

In an emailed statement to Reuters, Rent-A-Center said Vintage Capital's proposal "significantly undervalues the company" and its strategic plan.