#StockMarket #NvidiaEarnings #MarketTrends
Dow Jones Today: S&P 500, Nasdaq Slide as Nvidia, Other Chip Stocks Fall Sharply
The S&P 500 and Nasdaq Composite were down in afternoon trading Monday as AI investor darling Nvidia and other chip stocks fell sharply. Stock futures tied to major indexes were fluctuating near unchanged Monday, as investors prepare for highly anticipated earnings reports and economic data later in the week. Futures tied to the Dow Jones Industrial Average and S&P 500 were up 0.1%, while those linked to the Nasdaq 100 were down 0.1%. Major indexes closed sharply higher on Friday after Federal Reserve Chair Jerome Powell indicated during a highly anticipated speech that the central bank is poised to lower its benchmark interest rate soon.
Market Highlights
- Dow Jones Industrial Average: Futures up 0.1%.
- S&P 500: Futures up 0.1%.
- Nasdaq 100: Futures down 0.1%.
- Nvidia (NVDA): Shares down sharply ahead of earnings report.
- 10-Year Treasury Yield: Holding steady around 3.81%.
- Gold Prices: Up slightly at around $2,560, trading near record highs.
- Bitcoin: Down slightly at just under $64,000.
Economic Data and Earnings Calendar
The economic data and earnings calendars are light on Monday but pick up significantly in the next few days. The big event this week comes Wednesday, when Nvidia (NVDA) is scheduled to release its quarterly earnings report, amid expectations that AI investor darling will once again report blockbuster results. Market participants will also be paying close attention to Friday's release of the Fed's preferred measure of inflation.
Indian Markets
In India, the 30-share BSE Sensex jumped 611.90 points or 0.75% to settle at 81,698.11. During the day, it surged 738.06 points or 0.91% to 81,824.27. The NSE Nifty soared 187.45 points or 0.76% to 25,010.60. Traders said foreign fund inflows and buying in frontline stocks HDFC Bank and Reliance Industries also drove the markets higher.
Currency Market
The rupee pared its initial gains and settled for the day on a flat note, rising just 1 paisa to 83.89 (provisional) against the American currency on Monday, weighed down by a surge in crude oil prices. Forex traders said the Indian rupee gained in morning trade on rise in domestic markets and a weak US Dollar. However, a surge in crude oil prices capped sharp gains for the local unit.
Market Strategy
Oppenheimer's market strategy highlights that Fed Chairman Powell's remarks all but confirmed that the Fed will cut rates at its September 18 meeting. We still think 25 basis points is most likely. With 477 or 95% of the firms in the S&P 500 index having reported, earnings are up 9.4% from Q2:2023 on revenue growth of 4.7%. Nine of the 11 sectors show positive earnings growth with four at double-digit rates. Just two sectors show earnings declining from a year earlier.
Futures and Global Markets
U.S. futures were higher on Monday morning, extending the Wall Street rally from the previous trading session. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up by about 0.25%, 0.19%, and 0.11%, respectively, at 4:30 a.m. EST, August 26. On Friday, the three major indices surged and ended the week with gains for the second consecutive week. The S&P 500, the Nasdaq Composite, and the Dow Jones added 1.2%, 1.5%, and 1.1%, respectively.
Best Growth Stocks to Buy
Three stocks that are currently rated as 'buy' and exhibit robust growth potential for investors to consider as of August 26th are:
- Pilgrim's Pride (PPC): This firm specializes in the processing, production, marketing, and distribution of frozen, fresh, and value-added chicken products. It holds a Zacks Rank of #1 (Strong Buy) and has seen the Zacks Consensus Estimate for its earnings this year rise by 12.7% over the past two months.
- KT (KT): Operating in the telecommunications sector, this company offers mobile telecom services, traditional phone services, as well as fixed-line and VoIP communication options. It also carries a Zacks Rank of #1, with Zacksensus Estimate its current earnings increasing by 3.9% in the last 60 days.
- Daktronics (DAKT): Renowned for its leadership in the market, Daktronics is one of the largest global suppliers of electronic scoreboards, programmable displays, and large-scale video displays along with control systems. It features a Zacks Rank of #1 and has experienced a remarkable 34.5% increase in the Zacks Consensus Estimate for its earnings this year over the last two months.
Conclusion
Today's market saw a mixed performance, with the S&P 500 and Nasdaq Composite down in afternoon trading while the Dow Jones Industrial Average futures were up. The anticipation of Nvidia's earnings report and the Fed's preferred measure of inflation later in the week will continue to influence market sentiment. The Indian markets saw a significant surge, driven by foreign fund inflows and buying in frontline stocks. The best growth stocks to buy, including Pilgrim's Pride, KT, and Daktronics, offer promising opportunities for investors.
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