Wall Street's three major averages closed lower on Tuesday with the Dow leading declines as Treasury yields rose along with oil prices and investors assessed prospects for the Federal Reserve's interest rate path. Saudi Arabia and Russia earlier announced a fresh extension to their voluntary supply cuts.
Market Snapshot
The Dow Jones Industrial Average fell 195.74 points, or 0.56%, to 34,641.97, the S&P 500 lost 18.94 points, or 0.42%, at 4,496.83 and the Nasdaq Composite dropped 10.86 points, or 0.08%, to 14,020.95.
Market Movers
Zscaler — The cloud security stock slipped 1% even after a better-than-expected report for its fiscal fourth quarter and strong current-quarter guidance. Zscaler reported adjusted earnings of 64 cents per share while analysts polled by LSEG, formerly known as Refinitiv, expected 49 cents. Revenue also topped consensus by $25 million, coming in at $455 million. Additionally, the company said earnings and revenue should come in ahead of what analysts anticipate for the current quarter.
GitLab — The technology platform jumped 4% following a strong second-quarter report and current-quarter guidance. GitLab posted adjusted earnings of 1 cent per share on $140 million in revenue. Meanwhile, analysts polled by LSEG anticipated a loss of 3 cents per share and revenue of $130 million. The company’s current-quarter revenue outlook was also better than analysts’ forecast.
Gogo — The broadband stock advanced 3.5% after the company announced the approval of a share repurchase program of up to $50 million.
Asana — The work management stock slipped 2.8% despite a strong report and outlook. Asana posted a loss of 4 cents per share on revenue of $162 million, while analysts polled by LSEG anticipated a loss of 11 cents per share and $158 million in revenue.
AeroVironment — Shares added nearly 12% after the maker of unmanned aircraft systems beat analysts’ expectations in its fiscal first quarter. AeroVironment posted adjusted earnings of $1 per share on revenue of $152 million. Analysts polled by LSEG called for earnings of 26 cents per share and revenue of $129 million.United Airlines closed off 2.5% after falling as much as 4.7% earlier in the day with a system-wide information technology issue forcing an hour-long aircraft ground stop.
Shares of Airbnb rallied 7% while Blackstone added 3.6% on news that their stocks would join the S&P 500 index. Oracle shares rose 2.5% after Barclays upgraded the software company to "overweight" from "equal weight."
Market News
Arm Targets More Than $52 Billion Valuation in Largest IPO of the Year
British chip designer Arm Ltd. is targeting a valuation of more than $52 billion from what is expected to be the largest initial public offering this year, according to the company’s latest regulatory filing.
SoftBank Group 9984 0.11%increase; green up pointing triangle, Arm’s owner, plans to sell roughly 10% of the total shares outstanding, setting a share sale price of between $47 and $51 apiece. The Securities and Exchange Commission filing comes as Arm’s management hits the road starting Tuesday to meet with prospective investors to solicit support for the offering.
FTC Antitrust Suit Against Amazon Set for Later This Month After Meeting Fails to Resolve Impasse
Amazon.com AMZN -0.62%decrease; red down pointing triangle officials haven’t offered concessions to the Federal Trade Commission in pursuit of a settlement over antitrust claims, paving the way for the regulator to file a lawsuit later this month, according to people familiar with the matter.
Top members of Amazon’s legal team had a video call with FTC officials on Aug. 15. The so-called last-rites meeting, which is often a final step before a court battle, was a chance for the technology giant to make its case to the regulator to head off a possible lawsuit that officials have been working on for many months.
The AI market will be worth $600 billion, Nvidia exec says
Speaking to a standing-room-only crowd at the Goldman Sachs Communacopia and Tech Conference on Tuesday, Nvidia (NVDA) exec Manuvir Das outlined some startling numbers on the market for artificial intelligence.
According to Das, the total addressable market for AI will consist of $300 billion in chips and systems, $150 billion in generative AI software, and $150 billion in omniverse enterprise software. These figures represent growth over the "long term," Das said, though he did not specify a target date.
Grayscale urges U.S. SEC to approve spot bitcoin ETF following court victory
Grayscale Investments on Tuesday urged the U.S. Securities and Exchange Commission (SEC) to quickly approve its proposed exchange-traded fund that would track bitcoin, following the crypto asset manager's court victory against the agency.
A three-judge panel of the District of Columbia Court of Appeals in Washington last week ruled that the SEC was wrong to reject Grayscale's proposed bitcoin ETF without explaining its reasoning, in a case that has been closely watched by the industry and which briefly boosted the price of bitcoin nearly 7%.
