Significant slump warning
Nervous Wall Street awaits Nvidia numbers
08/22/2023 10:43 p.m
The mood on the US stock exchanges remains mixed. The Dow Jones and S&P 500 are down, the Nasdaq is slightly up. Most eyes are already on Wednesday. Then chip giant Nvidia presents its business figures – and reveals whether the AI hype was justified. Analysts warn.
On Wall Street, he has Dow Jones submitted on Tuesday. The leading US index closed 0.5 percent lower at 34,289 points. For the bigger one S&P 500 was down 0.3 percent. The tech-heavy one Nasdaq advanced 0.1 percent to 13,505.87 points.
Investors are increasingly focusing on the meeting of central bankers in Jackson Hole, which begins on Thursday. The stock market’s hopes rest on potentially easing statements at Friday’s meeting where US Federal Reserve Governor Jerome Powell will speak.
Everyone is waiting for Nvidia
At the bond market Yields on longer-dated securities fell somewhat after the sharp increase on the previous day, but continued to be at their highest levels for around 16 years. Market participants pointed to weaker-than-expected July existing home sales data. The US 10-year bond yield fell 1.0 basis point to 4.32 percent. Stock traders are hoping that the bond market has seen its medium-term bottom and yields have seen their current high.
The technology sector is currently also being viewed by the chip giant Nvidia determined, who will present business figures on Wednesday. Expectations are obviously very high here and investors are giving advance praise: The titles had gained 8.5 percent the day before, but now they have given way again by 2.8 percent.
In May, the company had generated tremendous excitement after a strong outlook that had pushed the stock to an all-time high. Since then, it has continued to rise with smaller dents: since the beginning of the year, the price has already increased by 207 percent.
Should the forthcoming business ID reveal, however, that the Hype about AI If this is not reflected in significantly increasing profits, the previous price driver could be dampened, it was also said with a view to the sector. “Nvidia had better meet its revenue guidance for the past quarter, otherwise there’s a chance we’ll see a significant downward revision,” warned Swissquote Bank analyst Ipek Ozkardeskaya.
Zoom with levies – retailers buckle
The share price of Zoom Video Communications lost 2.1 percent. The provider of software for video conferencing exceeded market expectations with its second quarter results, but the sales outlook for the current quarter was a tad below market estimates.
The papers from Faraday Future Intelligent Electric fell 9.8 percent. The electric-car startup trimmed its second-quarter loss, saying it’s entered the revenue-generation phase.
Lowe’s traded 3.7 percent higher. The retailer has reported second-quarter like-for-like sales down 1.6 percent, while analysts had feared a sharper 2.6 percent decline. The hardware store chain confirmed the forecast for the year as a whole.
With the department store operator Macy’s Another retail company presented better-than-expected second-quarter results. However, due to a very cautious outlook, the share price lost 14.1 percent. Dick’s Sporting Goods slumped 24.2 percent after the retailer lowered guidance and presented other weak earnings. Apparently the company suffers from theft, it was said in the trade.
dollars a little tighter
On the foreign exchange market, the dollar index was 0.3 percent firmer. The dollar should remain supported in the near term as long as solid US economic data left the possibility of another rate hike by the Federal Reserve open, said Niels Christensen, chief analyst at Nordea. “We have a slight short-term bias for a stronger dollar (…) at least to the point where we say there will be no further rate hikes by the Fed.”
The oil prices gave in a bit. Prices for WTI and Brent grades fell by up to 0.6 percent. Market participants referred to ongoing concerns about demand due to the weak economic development in China.
The gold price gained slightly. The price of the troy ounce rose by 0.2 percent.