Wall Street Today | Nvidia Crushes Earnings. Stock Soars After CEO Says the ‘Race Is On’ for AI
![Wall Street Today | Nvidia Crushes Earnings. Stock Soars After CEO Says the ‘Race Is On’ for AI](https://ussnsimg.moomoo.com/feed_image/77777011/95ebe71a1e6b30d6aefc34f1a473269e.webp/bigmoojpg)
MACRO
Powell Is Using Jackson Hole as Final Push in Inflation Fight
Federal Reserve Chair Jerome Powell is expected to map out final steps in the US central bank’s campaign to tame inflation, and reinforce its commitment to finishing the job, when he speaks Friday in Jackson Hole, Wyoming.
Powell will likely use his platform this week to outline how the Fed will assess whether rates should go higher and determine when it’s time to start cutting them.
![Source: Bloomberg](https://ussnsimg.moomoo.com/77777011/editor_image/6290b3c5e3c8312d985a4922fddab77f.jpg/bigmoo)
Quant Stock Trades Are Breaking Away From Bonds
Even as 10-year Treasury yields surge toward 2007 highs, the tech-stuffed Nasdaq 100 has returned more than double than the S&P 500 so far in 2023. Gains from value investing have disappointed compared to what might be expected. The correlation between each investing style and how bonds move on any given day has slumped.
![Source: Bloomberg](https://ussnsimg.moomoo.com/77777011/editor_image/14d970921be6310cbed0df573b2a9f9a.jpg/bigmoo)
US Home Purchase Applications Hit Lowest Since 1995 on Rate Rise
US mortgage applications for home purchases dropped last week to an almost three-decade low, indicating residential real estate is reeling from the recent spike in borrowing costs.
The Mortgage Bankers Association index of home-purchase applications fell 5% to 142, the lowest level since 1995. The Wednesday data also showed that the contract rate on a 30-year fixed mortgage increased 15 basis points to 7.31% in the week ended Aug. 18 — the highest since late 2000.
![Source: Bloomberg](https://ussnsimg.moomoo.com/77777011/editor_image/5ea0ac93af7b38009aa838fcdfd137dd.jpg/bigmoo)
SECTORS
WTI Falls Below $79 a Barrel to Lowest Close Since July
West Texas Intermediate fell below $79 to the lowest closing price in more than a month. Capping crude’s losses was a bullish stockpile report showing that supplies remain tight despite concerns about a potential slowdown in demand.
US inventories dwindled to the lowest since December 2022 while stockpiles in the nation’s biggest storage hub in Cushing, Oklahoma, slid the most since October 2021.
![Source: Bloomberg](https://ussnsimg.moomoo.com/77777011/editor_image/980e367edc8b33828f63b2036eaea508.jpg/bigmoo)
COMPANY
Nvidia Crushes Earnings. Stock Soars After CEO Says the ‘Race Is On’ to Adopt AI
$NVIDIA (NVDA.US)$ shares spiked on Wednesday after the company reported strong quarterly earnings and provided a revenue forecast for its current October quarter that was well above expectations. The company’s CEO credited a dramatic shift towards AI adoption for the robust results.
Nvidia said adjusted earnings for the July quarter were $2.70 per share, compared to Wall Street’s consensus estimate of $2.08, according to FactSet. Revenue came in at $13.5 billion—up 101% year-over-year, which was better than analysts’ expectations of $11.2 billion.
The big news was the outlook. For the current quarter, Nvidia provided a revenue forecast range with a midpoint of $16 billion, above the analyst consensus of $12.6 billion.
Snowflake Gives Restrained Outlook on Slower Software Demand
$Snowflake (SNOW.US)$ gave a sales outlook for the current quarter in line with expectations, suggesting that companies are still cautious about expanding their cloud software budgets.
Product revenue will increase about 29% to as much as $675 million in the period ending in October, the company said Wednesday in a statement.
SpaceX Reportedly Working With Cloudflare to Boost Starlink
SpaceX s reportedly working with content delivery company $Cloudflare (NET.US)$ in an effort to boost Starlink, its satellite internet service.
The companies are looking at ways to boost Starlink's network of data centers across the globe, The Information reported, citing a person with knowledge of the project.
Foot Locker Stock Plunges, Hits New 52-Week Low
Foot Locker’s second-quarter earnings met Wall Street estimates, but sales missed, falling nearly 10%. The retailer attributed the shortfall to “consumer softness,” markdowns and shoplifting problems.
The stock hit a new 52-week low during intraday trading Wednesday, closing down 28%.
Peloton Stock Plunges 20% as It Warns of Continued Losses
Peloton Interactive shares plunged roughly 20% Wednesday to record lows after the company reported another decline in paying subscribers and said the costs of an equipment recall was denting its profit.
Source: Bloomberg, Dow Jones, CNBC, Financial Times
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment