#StockMarket #EconomicData #NvidiaEarnings
Market Insights for August 29, 2024
Today, the stock market witnessed a mixed performance as investors digested the earnings reports from major companies, particularly Nvidia (NVDA), and awaited key economic data releases. Futures on the Dow Jones Industrial Average (DJIA) were up 0.38% at 4:29 a.m. EST, while the Nasdaq 100 (NDX) and the S&P 500 (SPX) were down by about 0.12% and 0.03%, respectively.
Nvidia's Earnings Impact
Nvidia's fiscal second quarter results dominated the market's attention. Despite beating consensus estimates, the company's stock fell 7% in after-hours trading. This decline was attributed to a lower-than-expected sales forecast for the current quarter. Analysts noted that the earnings beat was smaller compared to previous quarters.
Other Key Earnings Reports
Salesforce (CRM) gained 4% in extended trading after it beat fiscal Q2 estimates and raised its full-year earnings outlook. On the other hand, CrowdStrike (CRWD) was down about 3% after the cybersecurity company revised its full-year outlook lower due to the July global outage.
Economic Data Releases
Today, the second estimate of Q2 2024 GDP growth is scheduled for release. Additionally, the Initial Jobless Claims data for the week ended August 23 will be made public. These reports will provide valuable insights into the state of the economy and potentially influence market sentiment.
Market Performance
Yesterday, the S&P 500, the Nasdaq Composite, and the Dow Jones declined 0.6%, 1.1%, and 0.4%, respectively. This sell-off was largely driven by investor anxiety ahead of Nvidia's earnings release, particularly affecting the tech sector.
Key Market Indices
- Dow Jones Industrial Average (DJIA): Futures were up 0.7%.
- S&P 500 (SPX): Futures gained 0.3%.
- Nasdaq 100 (NDX): Futures were up 0.2%.
Asia-Pacific Markets
Asia-Pacific indices traded mixed today, with major artificial intelligence stocks under pressure following Nvidia's earnings report. Hong Kong's Hang Seng, China's Shenzhen Component, and Japan's Topix indices gained 0.53%, 0.94%, and 0.03%, respectively. However, China's Shanghai Composite and Japan's Nikkei indices closed lower by 0.5% and 0.02%, respectively.
Key Stocks to Watch
- Carpenter Technology (CRS): This specialty alloy producer and distributor carries a Zacks Rank #1 (Strong Buy) and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11% over the last 60 days.
- Pilgrim's Pride (PPC): This chicken products company also carries a Zacks Rank #1 and has seen the Zacks Consensus Estimate for its current year earnings increasing 12.7% over the last 60 days.
- Interactive Brokers (IBKR): This automated global electronic market maker and broker carries a Zacks Rank #1 and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.9% over the last 60 days.
Economic Indicators
- U.S. 10-year Treasury Yield: Down at 3.825%.
- WTI Crude Oil Futures: Trending higher, hovering near $74.62 per barrel.
Market Outlook
As investors continue to monitor earnings reports and economic data releases, the market's performance will likely be shaped by these factors. The upcoming release of the Personal Consumption Expenditures index on Friday will be closely watched for clues on inflation and its potential impact on interest rates. Market participants are eagerly awaiting the Federal Reserve's decision on interest rates, with a 64% probability of a 25 bps rate reduction in the September meeting.
In conclusion, today's market was characterized by a mixed performance, driven by the digestion of earnings reports and anticipation of key economic data releases. As the market continues to navigate these factors, investors will be closely watching for signs of inflation and interest rate movements.
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