(New York) The New York Stock Exchange was trading in the green on Wednesday, with brokers watching Nvidia’s results after the close, before focusing on Thursday on the Jackson Hole meeting and what the Fed will say.
The Dow Jones Index was up 0.21%, the tech-heavy NASDAQ gained 1.16% and the S
The day before, the indices had ended mixed, the Dow Jones down 0.51% to 34,288.83 points, the NASDAQ up slightly (0.06%) to 13,505.87 points and the broader index down by 0.28% to 4387.55 points.
“Megacap stocks are going to ride or sink as soon as we hear the results from Nvidia and their reaction will affect the market for the rest of the week,” warned Patrick O’Hare of Briefing.com.
Shares of Nvidia (1.48%), a maker of graphics processors at the heart of the artificial intelligence hype, fell 2.77% to $456.68 on Tuesday. It had soared the day before by more than 8%.
The stock price has inflated 345% since its low almost a year ago, and 200% since the start of the year.
Analysts expect the chipmaker’s second-quarter revenue of $11.9 billion, up 67% year-on-year. They expect a profit of 4.73 billion dollars against 656 million last year.
“Brokers are bracing for a roughly 10% stock move following the earnings announcement,” said Art Hogan of B. Riley Wealth Management.
In terms of macroeconomic news, the new home sales index for July surprised by climbing a good 4.4% with 714,000 sales.
This data – much higher than expected – was collected before the new surge in mortgage rates to more than 7% which followed the tension in bond rates.
The market was also “awaiting Fed Chairman Jerome Powell’s speech” Friday at 10 a.m. EST in Jackson Hole, Wyoming, Spartan Capital’s Peter Cardillo recalled.
“He should play down the tactical question of whether the Fed will raise interest rates again next month and should instead focus on the central bank’s determination to keep rates high for as long as needed to truly defeat inflation. commented Art Hogan.
In the bond market, yields eased significantly, with the 10-year rate slipping to 4.20% after hitting 4.32% the day before, close to its 16-year highs that had been hanging for a week.
On the stock side, the tech megacaps rebounded: Alphabet, Netflix and Meta gained more than 2%, Apple and Microsoft more than 1%.
Foot Locker, the athletic shoe chain, plunged 34% to $15.30 after reporting second-quarter profit in line with guidance, but revenue ($1.86 billion, -9, 9%) lower than projected and above all lower sales forecasts (-9% over the year). The chain has also suspended the payment of a quarterly dividend.
Management pointed the finger at a “price sensitive” consumer.
Also in the retail sector, connected bike and treadmill specialist Peloton was down 19% at $5.61, a record low for the stock. Peloton saw sales fall 5.4% in the fourth quarter and its subscribers declined by 29,000. The brand also blamed the cost of its recall in May of 2.2 million bikes that had seat problems. .
