Nvidia's Stock Performance: A Mixed Bag for Markets

CNBC Daily Open: It's not completely bad news that Nvidia fell

Markets try to shrug off Nvidia U.S. markets were mixed Thursday. The Dow Jones Industrial Average hit a new closing high, but the other two major indexes didn't fare as well. Asia-Pacific markets bucked the trend, climbing Friday. Hong Kong's Hang Seng index was the top performer, rising 1.8%. Separately, Tokyo's August inflation rose to 2.6%, the highest since March. Outsized expectations Nvidia shares lost around 6% Thursday despite the chipmaker posting quarterly revenue that was more than two times the figure a year earlier and the company announcing a $50 billion stock buyback, which usually pushes up share prices. That shows just how high investors' expectations for Nvidia were. Intel's no longer inside Intel, once the dominant semiconductor company, has been struggling in the wake of Nvidia's artificial intelligence-driven surge - its stock is down almost 60% this year. No surprise, then, that Intel executives are working with advisors from Morgan Stanley and other banks to come up with a turnaround strategy for the company. Price vs. spending July's consumer price index may have been a pleasant surprise, coming in at 2.9% for the year - lower than forecast and the slowest pace since March 2021. But the U.S. Federal Reserve pays more attention to the personal consumption expenditures price index, which comes out Friday. Here's what to expect. [PRO] Utilities as an AI play For investors who want to buy into the AI boom but missed the initial spike, utilities are a natural second option. AI data centers suck up huge amounts of energy, which means energy companies will benefit too. Unfortunately, it seems too late to buy utilities too, according to Morningstar - except for two stocks.

CNBC Daily Open: Nvidia beat expectations - as expected?

Nvidia: Great is not good enough Nvidia's numbers continue to dazzle. The chipmaker beat earnings per share and revenue expectations: net income, at $16.6 billion, more than doubled compared with a year ago, while revenue surged 122%. Alongside its earnings, Nvidia also announced a $50 billion stock buyback. Still, its shares fell around 7% in extended trading. Choppy stocks Major US indexes fell Wednesday, dragged down by Nvidia as investors were on edge ahead of its earnings. Super Micro Computer was also a big drag, with its shares plunging 19% after the company said it'd not file its annual report on time, and Hindenburg Research disclosed a short position on it. On the other hand, European markets mostly closed higher. The ride's not over Stocks took investors on a bumpy ride this August. Spooked by worse-than-expected U.S. economic data, seeing a sharp sell-off at the start of the month. Even though the S&P 500 has recovered its losses, Goldman Sach's Christian Mueller-Glissmann sees it as a cause for concern. People aren't interested in the thrill of a roller-coaster ride anymore. Big non-tech Berkshire Hathaway, Warren Buffett's conglomerate, hit $1 trillion in market capitalization on Wednesday. It's the first U.S. non-technology company to reach that milestone. Berkshire has climbed more than 28% this year, far outpacing the S&P 500's 18% rise. This might be the best birthday present for Buffett, who turns 94 on Friday. [PRO] Nvidia's market hold What moves markets? In recent years, thanks to inflation, the US consumer price index; the personal consumption expenditures price index; the nonfarm payrolls report. And now, thanks to the artificial intelligence explosion, Nvidia's earnings reports. Here's how the S&P, over the past year, has shifted after Nvidia reports earnings.

Nasdaq 100 futures fall after Nvidia posts quarterly earnings: Live updates

Nvidia shares dropped 6% in extended trading. In its fiscal second quarter, the AI chipmaker exceeded expectations on the top and bottom lines, and issued a rosy current-quarter sales outlook, but failed to impress traders anticipating a stronger beat. "Death, taxes, and NVDA beats on earnings are three things you can bank on. Here's the issue, the size of the beat this time was much smaller than we've been seeing. Even future guidance was raised, but again not by the tune from previous quarters," wrote Ryan Detrick, chief market strategist at Carson Group. "This is a great company that is still growing revenue at 122%, but it appears the bar was just set a tad too high this earnings season," Detrick added. Salesforce shares popped 3% after the business software giant beat fiscal second-quarter estimates on the top and bottom lines, and raised its full-year profit outlook. CrowdStrike also gained 3.5% on the back of an earnings and revenue beat, though it lowered its full-year outlook following the global outage in July. Wall Street is coming off a losing session after a slump in Nvidia shares ahead of the company's earnings results weighed on the major averages. The tech-heavy Nasdaq Composite dropped 1.12%, while the S&P 500 fell 0.6%. The 30-stock Dow slid about 159 points, or 0.39%. Those moves highlight the growing significance of Nvidia to the broader market, as the stock now accounts for roughly 7% of the S&P 500. Corporate earnings season continues Thursday with some notable consumer names including Dollar General, Ulta Beauty and Lululemon Athletica. Campbell Soup and Best Buy are also on deck. The July personal consumption expenditures price index is set to release on Friday.

Stocks Rebound on Nvidia's 'Pretty Good' Results: Markets Wrap

(Bloomberg) -- Tech stocks bounced back from the knee-jerk selling of Nvidia Corp. as traders said the company's results, which showed that revenue doubled in the quarter, reinforced the earnings power of artificial intelligence. Nasdaq 100 Index futures added 0.3% after earlier sliding as much 1.4%. S&P 500 contracts also rose and Germany's DAX Index hit a new record. Nvidia, which had tumbled sharply in trading after the close of US exchanges, was down only 2% in pre-market trading. Intel Corp., Apple Inc. and Microsoft Corp. all posted small gains. Subscribe to the Bloomberg Daybreak podcast on Apple, Spotify or anywhere you listen. Nvidia, a stock that's powered the bull market this year with a rally of more 150%, delivered a mixed picture to investors. Expectations on the stock have been lofty after its string of blowout results, and the company met or beat analysts' estimates on nearly every measure. Revenue soared to $30 billion in the fiscal second quarter. The company said third-quarter revenue will be about $32.5 billion. While analysts had predicted $31.9 billion on average, estimates ranged as high as $37.9 billion. "Fundamentally, market participants are reflecting on those Nvidia results and saying: they were actually pretty good," said Michael Brown, a senior strategist at Pepperstone Group Ltd. "The bar for a beat was impossibly high, so the results don't derail the bull case for the chipmakers or the equity market more broadly." The moves in US markets signaled a comeback from late Wednesday, when tech got hit after Nvidia's sales forecast underwhelmed and it signaled that it was working through production snags with its new Blackwell chip. A $286 billion exchange-traded fund tracking the Nasdaq 100 lost 1% after the close of regular trading. With the earnings season at an end, the focus is turning back to the macro landscape. Money markets are wagering on about one percentage point of rate cuts by year-end from the Federal Reserve, but uncertainty remains whether policy will be eased by a quarter-point next month or by 50 basis points. The Fed's preferred inflation gauge may firm up bets on how much and how quickly the central bank will ease policy, with the annual and month-on-month core PCE readings due Friday. Treasury 10-year yields and the dollar was steady. West Texas Intermediate crude traded near $74. "What investors are looking for now is further confirmation that if economic momentum is weakening, the Federal Reserve are going to ride to the rescue and provide a series of substantial cuts," said Brian O'Reilly, head of market strategy at Mediolanum International Funds. In European markets, sentiment was boosted by Spanish inflation figures that reinforced expectations for a European Central Bank rate cut in September. Bond yields slid across the board. Germany's DAX gained as much as 0.7%, reaching 18,912.47 points and topping its previous peak of May 15. This story was produced with the assistance of Bloomberg Automation. --With assistance from Abhishek Vishnoi and Winnie Hsu. (An earlier version corrected the date of PCE report.)

Stock Market Today: Stocks edge higher as markets move past Nvidia

Check back for updates throughout the trading day U.S. equity futures bumped higher Thursday, paired with a modest pullback in Treasury bond yields, as investors cleared the end-of-summer hurdle of Nvidia earnings and looked to growth and inflation data to consolidate the market's August rally. Nvidia's (NVDA) highly-anticipated July-quarter earnings report included record data center revenues, a solid near-term demand outlook and solid profit margins, but hints to delays for its new Blackline processors and slowing overall revenue growth rates clipped the stock in after-hours trading. The broader market optimism in the AI investment story, however, remains largely unchanged, and should support markets heading into the final trading days of the summer and next week's Labor Day holiday. Related: Nvidia earnings top forecast, but Blackwell delay signal hits stock Focus in today's session is now likely to shift to the Federal Reserve's rate path, which is inexorably tied to the pace of inflation pressures and a cooling labor market heading into the central bank's September policy meeting in Washington. Traders have locked-in around 100 basis points of rate cuts between now and the end of the year, and put the odds of a 50 basis point cut next month at around 36.5%, according to data from the CME Group's FedWatch. That could change today, however, with the release of an advanced reading for second quarter GDP growth, which will include detailed inflation data, as well as the Labor Department's tally of weekly jobless claims, both of which are slated for 8:30 am Eastern time. Bond markets were steady heading into the data releases, with 2-year notes trading at 3.861% and benchmark 10-year notes easing to 3.822% at the start of the New York session. The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.15% higher at 101.241 as it continues to rebound from the 13-month low it hit earlier this week. On Wall Street, futures contracts tied to the S&P 500, which is up 1.3% for the month and is just 1.4% from its July all-time peak, suggest a 10 point opening bell gain for the bluechip benchmark. The Dow Jones Industrial Average, meanwhile, is called 185 points higher with the tech-focused Nasdaq priced for a more modest 35 point advance. Nvidia shares were marked 2% lower, and indicating an opening bell price of $123.24 each, with more than 4.3 million shares changing hands in premarket trading. Salesforce (CRM) shares were also active, rising 5.07% to $272.02 each after the client software group topped the Street's second quarter earnings forecasts and boosted its full-year profit forecast on improved cloud spending prospects. More Economic Analysis: In Europe, Germany's DAX performance index hit a fresh all-time high of 18,892.92 points in early Frankfurt trading, while the regional Stoxx 600 benchmark added to recent gains with a 0.68% advance. Overnight in Asia, markets were largely muted in the wake of Nvidia's earnings report, with the Nikkei 225 ending 0.02% lower in Tokyo and the MSCI ex-Japan benchmark falling 0.17% into the close of trading. Related: Veteran fund manager sees world of pain coming for stocks

Nasdaq, S&P, Dow futures reverse, move higher as Nvidia trims post-earnings loss

Stock index futures erased overnight losses Thursday as some buying appetite came in for Nvidia (NVDA) following the initial selloff after its results. S&P futures (SPX) +0.3%, Nasdaq 100 futures (US100:IND) +0.4% and Dow futures (INDU) +0.5% rose. The VIX (VIX) -6% was lower following a 10% pop overnight. Nvidia was off 2% after being down as much as 7% overnight despite beating forecasts and issuing solid guidance. Rates were little changed. The 10-year Treasury yield (US10Y) fell 1 basis point to 3.83%. The 2-year yield (US2Y) was flat at 3.87%. The "10yr (Secured Overnight Financing Rate), now at 3.4%, is already overshooting to the downside," ING said. "It can get as low as 3% as the rate cutting gets going. But there is little relative value sense to it breaking below 3%, as the Fed itself is not discounted to break below 3%." "If or when the 10yr gets to that type of level, we expect it to spark a journey back up to 4%. That journey should begin around the turn of the year, at the very latest." On the economic front, Q2 GDP revisions arrive before the bell. Weekly jobless claims hit at the same time, with economists expecting no change at 232K. Any GDP revisions "would add to the uncertainty when it comes to tomorrow's core PCE print for July, so that could have implications for the 25bps vs 50bps debate depending how that looks," Deutsche Bank's Jim Reid said. "As of this morning, futures are placing a 35% probability on a 50bp rate cut in September, so the view remains that 25 is more likely. But it's far from a done deal, and we've still got both the jobs report and CPI release for August before that meeting, so plenty of time for that to shift around still." More on the markets SPX: AI Fantasy Is About To Meet Economic Reality Corrective Forces Weigh On G10 Currencies, With The Euro Threatening Its Largest Loss In 2 Months Goldman Sachs raises 12-month recession likelihood to 25%