Market Update: Stocks Mixed as Investors Digest Nvidia Earnings and Await Economic Data
As of August 29, 2024, U.S. stock futures are showing mixed performance in premarket trading, with investors processing Nvidia’s (NVDA) recent earnings report and anticipating key economic data releases.
Market Index Performance
The Dow Jones Industrial Average futures are leading the way, up 0.38% as of early morning trading. However, the tech-heavy Nasdaq 100 and the broader S&P 500 futures are slightly down, declining 0.12% and 0.03% respectively. This mixed performance follows Wednesday’s session, where all three major indexes closed lower, with the Nasdaq Composite experiencing the largest decline of 1.1%.
Nvidia Earnings Impact
Nvidia, a bellwether for the AI industry, reported strong second-quarter results after Wednesday’s closing bell. Despite beating consensus estimates, the company’s stock fell 7% in after-hours trading. Investors appear to have been underwhelmed by Nvidia’s sales forecast for the current quarter, suggesting that the market’s lofty expectations for AI-related growth may be tempering.
Upcoming Economic Data
Investors are eagerly awaiting several important economic reports scheduled for release on Thursday:
- The second estimate of Q2 2024 GDP growth
- Initial Jobless Claims data for the week ended August 23
These reports could provide crucial insights into the health of the U.S. economy and potentially influence Federal Reserve policy decisions.
Corporate Earnings and News
Several major companies are set to report earnings on Thursday, including Marvell Technology (MRVL), Autodesk (ADSK), Lululemon (LULU), Ulta Beauty (ULTA), Best Buy (BBY), Dollar General (DG), and Dell Technologies (DELL) .
In other corporate news:
- Salesforce (CRM) gained 4% in extended trading after beating fiscal Q2 estimates and raising its full-year earnings outlook.
- CrowdStrike (CRWD) saw its stock decline about 3% after revising its full-year outlook lower due to a July global outage.
As the market navigates these developments, investors will be closely watching how AI-related stocks respond to Nvidia’s earnings and awaiting the upcoming economic data for further direction.