The Dow Jones Industrial Average and other indices fell sharply as attention turned to the Jackson Hole speech by Federal Reserve Chairman Jerome Powell. nvidia (NVDA) lost almost all of its gains after its explosive profits. Tesla (TSLA) CEO Elon Musk issued Cybertruck a warning to employees.
Treasury yields rose. The yield on the 10-year note increased by 4 basis points to 4.24%, while the yield on the two-year note increased by 7 basis points to 5.03%. The yield curve has inverted further.
Powell’s speech looms large in the market
Stocks reversed lower as Powell prepared to deliver a much-anticipated speech at the economic symposium in Jackson Hole, Wyoming, on Friday.
Earlier Thursday, Labor Department data showed that first-time jobless claims unexpectedly fell to 230,000 from 240,000 in the previous week. Economists had expected the number to rise to 241,000.
Durable Goods Orders fell 5.2% in July, more than estimates for a 4% drop. Excluding transportation, durable goods orders rose 0.5%, above expectations.
“We seem to be getting constant reminders of how well this economy is doing and that keeps the risks of the Fed chair’s somewhat hawkish rhetoric on the table,” Edward Moya, senior market analyst at OANDA, told IBD. Today, we saw that jobless claims remain low and the Atlanta Fed continues to see the economy picking up in the third quarter.
Former hedge fund manager W IBD Live Contributor David Ryan also made a downward plea on social media.
“QQQ saw its highest level for the year on 7/19/23. NVDA’s earnings mark the latest move in tech. Raise cash and get defensive.” He said on Xformerly Twitter.
Futures: Powell’s speech rises after ugly market reversal
Nasdaq gains evaporate as bears bite into small-cap stocks
The tech-rich Nasdaq saw early gains evaporate, falling 1.9%. autodesk (ADSC) was a star here, closing 2.1% higher after its earnings report.
The Standard & Poor’s 500 Index fell 1.4%. dollar tree (DLTR) And Advanced Micro Devices (AMD) lagging behind declines of 12.9% and 7%, respectively. Dollar Tree beat its quarterly earnings views, but CEO Rick Drilling’s comments about the “challenging macro environment” unnerved investors.
All sectors of the S&P 500 index finished in negative territory. Technology, telecom services, and consumer estimates were the worst in the stock market today. The financial and real estate sectors suffered the least declines.
The bears capitalized heavily on smaller stocks, with the Russell 2000 losing 1.2%. Growth stocks also took a hit, with the Innovator IBD 50 ETF (FFTY) down 1.5%.
Dow Jones today: Boeing, Apple stock delays
The Dow Jones index also came under pressure on the close. It fell 374 points, or 1.1%.
apple (Camel) was among the worst sluggish companies on the index as it fell by 2.6%. regression of its 50-day moving average, MarketSmith’s analysis appears. Microsoft (MSFT) also suffered a decline of 2.2%.
Tesla shares decline; Elon Musk issues a warning about the Cybertruck
Tesla stock is down even though the much-hyped Cybertruck seems to be getting closer to reality.
On Wednesday, Musk shared a photo of himself in one of the vehicles on X, formerly Twitter. “I just drove the production candidate Cybertruck in a Tesla Giga Texas,” He said.
And it turned out on Thursday that he shared an email explaining how important precision is when building the SUV.
“Due to the nature of the Cybertruck, which is made of shiny metal with mostly straight edges, any difference in dimensions appears like a sore thumb,” he said in a note on Wednesday. leaked to the electrician.
Musk also said that “precision denotes perfection” and said that parts “must be designed and manufactured with an accuracy of less than 10 microns”. Final pricing and specifications have not yet been announced.
In addition, Reuters reported that investors who were negatively affected by Musk’s tweet in August 2018 about taking the company private soon will receive compensation. It will come from a fund set up as part of a settlement with the Securities and Exchange Commission.
Tesla stock is down 2.9% and is trading below the 50-day moving average. However, TSLA is still up nearly 113% for the year.
Nvidia stock gains fade despite explosive earnings
Nvidia had a strong opening before giving up almost all of its gains, to close up slightly by 0.1%.
The company reported its earnings and revenue far ahead of expectations. Adjusted earnings rose more than 400% to $2.70 a share. Revenue jumped 101% to $13.51 billion. Data center revenue doubled to $10.32 billion.
NVDA predicted sales of $16 billion in the current quarter, which exceeded expectations. This represents an increase of 170% over the same period last year.
Nvidia stock briefly hit an all-time high and is now up nearly 229% year-to-date. AI shares is a member of the prestigious IBD Leaderboard List of Top Stocks.
Outside the Dow: 3 stocks holding strength near entry points
With a stock market correction occurring, now is the time to build your watchlist. Here are some potential candidates who are showing strength.
The stock fund gave up just 0.3% as it remained close to entering the cup with a handle at 31.94, MarketSmith’s analysis appears.
The database software has a very good IBD composite rating of 89 out of 99. Earnings are a major strength here.
NOV Oil & Gas Industry Equipment fell 1% but is still close to the cup-by-handle buy point at 20.98. All-around performance is strong here. The RSI line has been looking strong lately.
Automatic Data Processing fell 0.5%, settling near a cup by handle, at entry point of 256.84. The RS line continues to show boldness.
The outsourcing and payroll services stock has a very good EPS rating of 93. It’s also in the top 23% of price-performing stocks over the past 12 months.
Please follow Michael Larkin on Twitter at @IBD_MLarkin For further analysis of growth stocks.
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