Market Watch: Wall Street is expected to trade in tight ranges on Thursday due to labor macro data, Vice President Kamala Harris’ speech, and the start of the Jackson Hole symposium.
Nvidia’s quarterly results
Nvidia reported adjusted earnings of $0.68 a share on revenue of $30.04 billion, beating estimates of $0.64 and $28.68 billion for the three months ended July 28. The stronger quarterly results were supported by a 154% surge in data center revenue to $26.27 billion from the same period a year earlier.
However, the stock dropped almost 7% in after-hours trading, losing $200 billion in market value after its revenue guidance missed some estimates and its gross margin outlook. Nvidia’s market capitalization soared above $3 trillion, briefly becoming the world’s most valuable company in June. The hefty drop in Nvidia shares could be another dip to buy the company.
Apple AI
Apple has ordered components for a higher number of iPhones than last year, suggesting a potential boost in sales due to artificial intelligence, with orders for between 88 and 90 million iPhones.
Apple is set to unveil its iPhone 16 in September, along with a range of artificial intelligence features, amid increasing orders, reflecting analyst forecasts that AI could boost iPhone sales, which have been declining over the past year.
Harris’s Interview
Kamala Harris and Tim Walz will have their first interview with CNN, marking their first since becoming the Democratic candidate in July. Harris has not held a one-on-one interview or press conference. The interview could provide an opportunity to flesh out her policy agendas.
US Republican Donald Trump and Democratic Kamala Harris are set to hold a presidential debate, providing 240 million US voters with a chance to hear their policies.
Economic Calendar
- 08:30 AM GDP Q2
- 08:30 AM International Trade in Goods (Advance)
- 08:30 AM Jobless Claims
- 08:30 AM Corporate Profits
- 08:30 AM Retail Inventories (Advance)
- 08:30 AM Wholesale Inventories (Advance)
- 10:00 AM Pending Home Sales Index
- 10:30 AM EIA Natural Gas Report
- 01:00 PM Results of $44B, 7-Year Note Auction
- 03:30 PM Fed’s Bostic Speech
- 04:30 PM Fed Balance Sheet
Must read book about investing – check here Market Watch Market Watch Market Watch
Recent data indicating a possible cooling in the U.S. economy have alleviated some persistent inflation concerns, fueling hopes that the Federal Reserve will start to bring interest rates down from more than two-decade highs as soon as September. Along with the Dow, the benchmark and tech-heavytouched record marks last week.
The durability of the strength on Wall Street will likely be tested by a fresh batch of corporate results this week, including quarterly returns from artificial intelligence darling Nvidia (see below). Durable goods and consumer sentiment data will also be in focus as markets hunt for more evidence that growth is moderating enough to give the Fed justification for rolling out rate cuts this year.
Recent data indicating a possible cooling in the U.S. economy have alleviated some persistent inflation concerns, fueling hopes that the Federal Reserve will start to bring interest rates down from more than two-decade highs as soon as September. Along with the Dow,
The durability of the strength on Wall Street will likely be tested by a fresh batch of corporate results this week, including quarterly returns from artificial intelligence darling Nvidia (see below). Durable goods and consumer sentiment data will also be in focus as markets hunt for more evidence that growth is moderating enough to give the Fed justification for rolling out rate cuts this year.
arket Watch MMarket Watcharket Watch
MFitch Ratings has downgraded China’s credit rating outlook to “Negative” from “Stable” due to concerns over growing public debt and slowing growth in the world’s second-largest economy. The agency affirmed China’s rating at A+, citing increasing risks to China’s public finance outlook. Concerns over slowing economic growth have grown in recent months, with Fitch expecting gross domestic product growth to fall to 4.5% in 2024.
arket WatchMarket WatchMarket WatchMarket Watch Market Watch Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting
U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.
Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.
U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.
Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.