Dow rises, Nasdaq tumbles as Nvidia struggles ahead of earnings

VaselineAugust 26, 2024

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Dow rises, Nasdaq tumbles as Nvidia struggles ahead of earnings

U.S. stocks were mixed in choppy trading on Monday as investors weighed the imminent arrival of interest rate cuts and braced for a busy week dominated by Nvidia’s ( NVDA ) earnings report.

The Dow Jones Industrial Average (^DJI) added as much as 200 points to hit a fresh intraday high before slipping back to a 0.3% gain. The S&P 500 (^GSPC) fell 0.2%, while the Nasdaq Composite (^IXIC) fell 1% as Nvidia shares fell.

Shares of Tesla ( TSLA ) also fell 3%, contributing to losses in the Nasdaq and S&P 500.

Stocks are reeling from weekly gains after Chairman Jerome Powell made it clear the Fed is ready to pivot to cutting interest rates in September. The major indices gained more than 1% last week.

Markets quickly priced in 1 percent cuts through the end of 2024. But with just three Fed meetings left in the year — in September, November and December — and the August jobs report still to come, Wall Street wonders when and if a 0.5% reduction is likely.

Now, the focus is firmly on Nvidia’s earnings – the highlight of the week – which will likely determine whether the market’s mood remains upbeat. If the chipmaker’s results on Wednesday fail to meet soaring expectations, that could further hurt the AI trade that fueled the stock’s gains and, in turn, test the market’s recovery from August lows.

Also following Friday’s update on Fed policymakers’ preferred inflation gauge, the PCE print, is likely to feed into the rate calculations. Also on deck is a second-quarter GDP reading on Thursday.

Meanwhile, oil prices rose about 3 percent amid reports of production shutdowns in Libya and fears of escalating tensions in the Middle East after Israel and Hezbollah launched strikes. Global benchmark Brent crude futures (BZ=F) rose to $80.08 a barrel, while U.S. benchmark WTI crude futures (CL=F) changed hands at $77.19 a barrel barrel.

Live5 updates

Monday, August 26, 2024 at 17:30 GMT+2

McLaren CEO tries to follow Ferrari’s blueprint for success, but without ‘arrogance’

Pras Subramanian of Yahoo Finance reports:

CARMEL, Calif. — McLaren CEO Michael Leiters believes the British luxury supercar maker can pull off the same feat as Ferrari, but in a slightly different way.

“We have one element in our brand and that is ownership,” Leiters, who has been at the helm of McLaren for two years after eight years as Ferrari’s technical director, told Yahoo Finance in an interview at Monterey Auto Week. “We want people here. … We talk to everyone – without arrogance.”

This could be read as a not-so-veiled jab at Ferrari, given that the Italian luxury sports car maker is notorious for secrecy, invitation-only events and selling new vehicles only to current or favored customers.

Read more here.
Monday, August 26, 2024 at 16:49 GMT+2

Dow rises 200 points as Nasdaq falls, Nvidia falls 2%

Markets diverged on Monday as the Dow Jones Industrial Average (^DJI) surged more than 200 points to hit a new intraday high.

The S&P 500 (^GSPC) erased earlier gains to fall 0.3%, while the Nasdaq Composite (^IXIC) fell more than 1%, led by a drop in Nvidia (NVDA) shares.

The AI chip heavyweight will report quarterly results this Wednesday after the market closes.

EV giant Tesla ( TSLA ) also fell more than 3%, weighing on the S&P 500 and Nasdaq.
Monday, August 26, 2024 at 16:31 GMT+2

Dow gains 200 points, hits intraday record

The Dow Jones Industrial Average (^DJI) rose more than 200 points, or 0.5%, on Monday morning to hit a new intraday high of 41,394.10.

Energy and Materials led gains on Monday. Meanwhile, tech stocks lagged, with the tech-heavy Nasdaq Composite (^IXIC) slipping as much as 0.7%, while the S&P 500 (^GSPC) was slightly lower.
Monday, August 26, 2024 at 15:42 GMT+2

The S&P 500 is rising, within inches of a record high

The S&P 500 (^GSPC) rose 0.3% on Monday, nearing record highs since July. The index was less than 0.5% away from its July 16 record close of 5,667.20.

The Dow Jones Industrial Average (^DJI) rose 0.3% on Monday. The Nasdaq Composite (^IXIC) moved just above the flat line after opening slightly lower.
Monday, August 26, 2024 at 15:31 GMT+2

Stocks open mixed as investors focus on Nvidia’s earnings this week

Stocks traded mixed on Monday as investors turned their attention to a busy week led by Nvidia’s (NVDA) earnings report.

The S&P 500 (^GSPC) rose about 0.1%, while the Dow Jones Industrial Average (^DJI) rose about 0.2%. The tech-rich Nasdaq Composite (^IXIC) fell just below the flat line after the major indexes rose on Friday.

The focus this week is firmly on Nvidia’s earnings. Much is riding on these results as the heavy AI chip has been a major driver of the markets this year. Shares of Nvidia were little changed on Monday morning after a 4.5% gain on Friday.

Stocks neared new highs on Friday after Fed Chairman Jerome Powell made it clear the central bank is ready to move to cut interest rates in September. The benchmark S&P 500 is less than 1% away from breaking the closing high set in July.