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Stocks Rise Despite Nvidia's Disappointing Earnings
Today, the stock market saw a surprising upswing despite Nvidia's shares falling by 6% in after-hours trading following its quarterly report. The chip manufacturer's impressive 150% year-over-year growth was overshadowed by investors' high expectations, which the company failed to meet. Nvidia's revenue and earnings surpassed projections, but its future guidance was not as robust as anticipated.
Ryan Detrick, chief market strategist at Carson Group, noted that Nvidia's earnings surprise was significantly smaller than in previous quarters. "This is a fantastic company that continues to grow its revenue at 122%, but it seems the expectations were set slightly too high for this earnings season," he said.
On the other hand, Salesforce shares surged by 3% after the enterprise software leader surpassed fiscal second-quarter forecasts in both revenue and earnings, while also raising its profit outlook for the entire year. CrowdStrike experienced a 3.5% increase following its own earnings and revenue success, although it did lower its full-year guidance due to a global outage in July.
The market's reaction underscores Nvidia's increasing importance, as its stock now represents around 7% of the S&P 500. The corporate earnings season will continue with several prominent consumer brands set to report, including Dollar General, Ulta Beauty, and Lululemon Athletica, alongside Campbell Soup and Best Buy.
Original Article: https://www.cnbc.com/2024/08/28/stock-market-today-live-updates-.html
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