To The Moon

Market closed with losses, but major indices climbed off session lows before the close. S&P 500 settled lower at -0.60%, NASDAQ closed lower at -1.1%. DJIA also lose -0.39%.

The indices decline seems to be inline with mega caps and semiconductor-related shares building on initial losses ahead of influential earnings news.

Economic Data On Thursday (29 Aug)

We have a couple of economic data coming up on Thursday (29 Aug), at 8.30am ET the second estimate for Q2 GDP will be reported with previous at 2.8%. The second estimate GDP deflator with previous 2.3% will be coming as well.

At same timing, we will be expecting Weekly Initial Claims where previous figure stands at 232,000. Continuing Claims with previous at 1.863 million would be next.

On the trade side, we will see the Advance July goods trade balance with previous at -$96.6 billion. Advance July Retail Inventories with previous figure at -$96.8 billion. Advance Retail Inventores with previous figure at 0.7% would be next. Advance Wholesale Inventories with previous 0.2% would be the final data at 8.30am ET.

At 10 am ET, we will be looking at July Pending Home Sales with consensus at 1.2% while previous stands at 4.8%. At 10.30 am, we will be expecting Weekly natural gas inventories with previous +35 bcf.

S&P 500 Financial and Healthcare Sector Only In The Green

S&P 500 financials sector managed to gain 0.30% boosted by many bank stocks, we also saw SPDR S&P Bank ETF (KBE) with a 0.80% gain, SPDR S&P Regional Banking ETF (KRE) was also 0.90% higher.

$Berkshire Hathaway(BRK.B)$ also contribute to the financials sector with a 0.90% gain while briefly topping a $1 trillion market cap.

Health Care Sector was also up by 0.12%. But we saw PHLX Semiconductor (SOX) declined with a 1.8% loss, Vanguard Mega Cap Growth ETF (MGK) also fell by 1.1%, Invesco S&P 500 Equal Weight ETF (RSP) was down modestly by 0.3%.

he price action in semiconductor shares and mega caps affected the information technology sector, which declined 1.30%.

Note Yield Mixed With Below Average NYSE Volume

Due to the market low participation ahead of Labor Day, the volume remained below average at NYSE. The 10-year note yield settled three basis point lower at 3.837% while 2-year note yield managed to settle two basis point higher at 3.875%.

Stocks To Watch

$NVIDIA Corp(NVDA)$ reported impressive fiscal second-quarter results with a 122% year-over-year revenue increase to $30 billion, surpassing expectations by $1.31 billion. The company's data center revenue reached a record $26.3 billion, up 16% from Q1 and 154% from the previous year. Nvidia's Q3 outlook also exceeded expectations, forecasting $32.5 billion in revenue. Despite these strong results, Nvidia shares fell 2% in extended trading.

In a notable influence on the broader market, Nvidia's (NVDA) earnings report had a significant impact on the S&P 500, with a one-day effect of 54 basis points. The company's market cap of $3.2 trillion and its 6.7% weight in the S&P 500 underscore its critical role in the AI chip market and overall market performance.

Investors are looking better growth and the outlook failed to impress growth-hungry investors. So we could be seeing more downside from NVDA, but is it a good time to buy?

Looking at the multi-timeframe, I would still be looking for a good entry price target as there is still potential uptrend for NVDA. I would think NVDA might go down to near $103 before making a move upside.

CrowdStrike (CRWD) saw its shares rise 3.4% in extended trading after reporting second-quarter results that exceeded expectations. The cybersecurity company earned $1.04 per share on an adjusted basis, with revenue hitting $963.9 million. Subscription revenue accounted for $918.3 million, while professional services contributed $45.6 million. The company slightly adjusted its full-year guidance, reflecting resilience despite last month's global outage.

$Salesforce.com(CRM)$ reported fiscal second-quarter results that topped expectations, with shares rising 1.6% in extended trading. The cloud computing giant earned an adjusted $2.56 per share, with revenue increasing 8.4% year-over-year to $9.33 billion. The company also announced a change in management and highlighted record-high operating margins.

We could be seeing a small dip later in today’s trading which might create a good entry at around $257.20, but we need to be careful that there might be some consolidation happening.

So I would think CRM for mid to short term trade.

$Affirm Holdings, Inc.(AFRM)$ reported a Q4 GAAP EPS of -$0.14, beating expectations by $0.30, and revenue of $659.18 million, a 47.9% year-over-year increase. The company provided a positive financial outlook for the next quarter, with revenue expected to range between $640 million to $670 million.

For AFRM, though we are seeing earnings beat, there might still be possibility of a price dip to around $30 before it make a upside move. I would be monitoring the price action before making an entry.

Super Micro Computer (SMCI) experienced a significant drop, losing 25% of its value after announcing it would not be able to file its annual 10-K report on time. The delay is due to the need for more time to complete the assessment of its internal controls over financial reporting.

HP (HPQ) missed its Q3 Non-GAAP EPS expectations by $0.03, reporting $0.83 per share, but beat revenue expectations with $13.52 billion, a 2.4% year-over-year increase. The company also increased its share repurchase authorization to $10 billion and provided a mixed outlook for Q4.

Summary

We might need to be cautious when trading the market today (29 August) as there would be impact on the tech stocks because investors are not feeling confident on Nvidia growth, but this might be a good time to look at some of the potential tech stocks.

It is time to look at some of the financials stocks like $Block(SQ)$ as they should be benefitting from the rate cuts as it nears.

Appreciate if you could share your thoughts in the comment section whether you think market would be in negative bias because of Nvidia downside move.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.