U.S. stocks kicked off August sharply lower after a round of economic data on Thursday spurred concerns the economy may be slowing faster than anticipated while the Federal Reserve maintains a restrictive monetary policy.
Market Snapshot
The Dow Jones Industrial Average fell 494.82 points, or 1.21%, to 40,347.97, the S&P 500 lost 75.62 points, or 1.37%, to 5,446.68 and the Nasdaq Composite lost 405.25 points, or 2.30%, to 17,194.15.
Market Movers
Apple — Shares of the iPhone maker inched higher, as the company beat analysts’ estimates on the top and bottom lines. Apple reported fiscal third-quarter earnings of $1.40 per share while analysts polled by LSEG called for $1.35 per share. Revenue clocked in at $85.78 billion, also surpassing the Street’s estimates.
Intel — The chip stock sank 19%. Intel said it would suspend its dividend in the fiscal fourth quarter, and it announced plans to lay off 15% of its workforce. The news coincided with worse-than-expected quarterly results. Intel also shared disappointing guidance for the current quarter.
Amazon — Shares of the e-commerce giant dropped 5% in extended trading. The company reported weaker-than-expected revenue for the second quarter and issued a disappointing forecast for the third quarter. Revenue in its cloud division increased 19% in the second quarter, beating analysts’ estimates, however.
DoorDash — Shares surged nearly 14% after the online food ordering company reported a revenue beat in the second quarter. DoorDash posted $2.63 billion in revenue while analysts polled by LSEG had estimated $2.54 billion. Management also raised the marketplace gross order value forecast for the third quarter.
Coinbase — The crypto exchange operator saw its shares rise nearly 5% in extended trading. In the second quarter, revenue came in at $1.45 billion, slightly above estimates of $1.40 billion, according to LSEG.
Block — The fintech company rallied more than 7% on better-than-expected adjusted earnings in the second quarter. Block reported adjusted earnings of 93 cents per share, coming above consensus calls for 84 cents per share, according to analysts surveyed by LSEG. Meanwhile, revenue of $6.16 billion missed analysts’ estimates for $6.28 billion.
Snap — The parent of the instant messaging app cratered 17%. Snap called for third-quarter adjusted earnings to range between $70 million and $100 million, falling short of the $110 million estimate from analysts polled by StreetAccount. Revenue for the latest quarter missed the Street’s forecasts.
Roku — Shares jumped more than 5% after Roku posted second-quarter results that exceeded expectations. The streaming device company posted a narrower-than-expected quarterly loss of 24 cents per share, better than the loss of 43 cents per share anticipated by analysts polled by LSEG. Revenue of $968 million topped the $938 million consensus estimate.
Clorox — The stock advanced 4%. Clorox issued fiscal full-year earnings guidance in a range between $6.55 and $6.80 per share, coming above analysts’ estimates of $6.45 in earnings per share, according to analysts polled by LSEG. Fiscal fourth-quarter adjusted earnings came in at $1.82 per share, while consensus estimates called for $1.56 per share.
Coterra Energy — Shares dipped 1.8% after Coterra Energy posted disappointing earnings results. Coterra reported adjusted second-quarter earnings of 37 cents per share, below the FactSet consensus estimate of 39 cents in earnings per share.
GoDaddy — Shares jumped 6% after the web hosting company raised its revenue guidance for the full year. GoDaddy issued full-year revenue guidance between $4.525 billion and $4.565 billion, while analysts polled by FactSet had expected $4.53 billion.
Atlassian — The software company sank more than 13% after the company’s forward outlook disappointed investors. Atlassian guided revenue in the current quarter between a range of $1.149 billion to $1.157 billion, while analysts surveyed by LSEG had expected $1.16 billion.
Booking Holdings – The online travel reservation company slumped 4%. Gross bookings for the second quarter came in at $41.4 billion, missing consensus estimates of $41.73 billion, per StreetAccount. The company beat on the top and bottom lines for the period.
Market News
US Justice Dept. is investigating Nvidia's acquisition of AI startup, Politico reports
The U.S. Department of Justice is investigating chip giant Nvidia's (NVDA.O), opens new tab buyout of AI startup Run:ai on antitrust grounds, Politico reported on Thursday, citing five people with direct knowledge of the matter.
Nvidia announced the acquisition of the Israeli firm in April for around $700 million according to a report by Tech Crunch.
Run:ai's technology allows developers and teams to manage and optimize their artificial intelligence infrastructure.
Wells Fargo faces government probe on anti-money laundering, sanctions
Wells Fargo is being investigated by government authorities over issues in its anti-money laundering and sanctions programs, the bank said on Thursday in a filing.
The company did not specify which government was inquiring about its practices, nor did it give details about the issues that were being probed.
Separately, Wells Fargo said it is in discussions with the U.S. Securities and Exchange Commission to resolve an investigation into the cash sweep options that the bank provides to investment advisory clients, according to the filing.