To The Moon

Market saw major indices put in a mixed performance Thursday as shares of Nvidia decline sharply despite a positive earnings but investors are looking for high growth outlook.

S&P 500 closed flat while NASDAQ fell by -0.23% with both indexes losing ground late in the day as the Nvidia selling intensified. Only DJIA managed to gain +0.59% to close at record high for the third time in four days.

Other mega-cap tech stocks were mostly higher on Thursday, with Meta Platforms (META), Microsoft (MSFT), $Apple(AAPL)$ and Amazon (AMZN) gaining ground while Alphabet (GOOGL) finished lower.

Economic Data

Weekly jobless claims figures released early Thursday came in as expected, while the latest revision to gross domestic product numbers showed that the economy grew slightly more than previously thought in the second quarter.

Market participants are eagerly awaiting Friday's release of the Personal Consumption Expenditures index, which is the Federal Reserve's preferred measure of inflation. Investors are watching economic indicators closely for clues on how they could affect the Fed's decision-making on interest rates. Fed Chair Jerome Powell last week signaled that rate cuts are coming, but noted that incoming data will drive the decisions on the pace and depth of the easing.

Note Yield Correlated to Market Expectation Around Interest Rates

The yield on 10-year Treasurys, which is correlated with market expectations around interest rates, moved to 3.865% Thursday from 3.84% yesterday.

The yield on 2-year treasurys was up by 2 basis point to close at 3.904%.

Gold Futures Up Slightly While BTC Little Changed

Gold futures were up slightly at around $2,550 per ounce, while bitcoin was little changed at around $59,500 after surging above $61,000 earlier in the day.

S&P 500 Energy Sector Led The Pack

Only four out of 11 S&P 500 ended in the red, with Energy leading the pack with +1.26% to Consumer Discretionary last of the green gainer at +0.20%.

Information Technology was last with -0.74% dragged down by Nvidia as it finished the session down 6.4% even though the company's quarterly results, released after the closing bell on Wednesday, exceeded analysts' estimates.

While revenue and profit more than doubled from a year ago, the performance during the quarter and the outlook provided by the company weren't as strong as the most optimistic investor expectations.

Stocks To Watch

Shares of $Salesforce.com(CRM)$ fell 0.7%, giving back earlier gains, after the enterprise software company reported results late Wednesday that beat expectations on both the top and bottom lines.

$CrowdStrike Holdings, Inc.(CRWD)$ , the cybersecurity company at the center of last month's global tech outage, rose 2.8% after reporting its results.

If we looked closely at the technical, CRWD MACD is converging and the KDJ is showing a downside decline, so the earnings might have help CRWD to gain 2.8% after its earnings, but we will need to see how CRWD might be trading next week.

The top daily performance in the S&P 500 belonged to shares of $Best Buy(BBY)$ , which surged 14.1% after the electronics retailer reported better-than-expected revenue and net income for the second quarter. Although comparable store sales slipped year over year, Best Buy highlighted sales growth in tablets and computers in the quarter. The company said it expects "uneven" consumer behavior to remain yet still boosted its full-year profit forecast.

I am expecting BBY to make another surprise surge today (30 Aug) as MACD is showing a nice upside move and KDJ is showing sign of a potential upside signal.

So I might be taking a position in BBY while I observe the price action on 30 August 2024.

Summary

Market did have an early rally during the trading session, but after some selling pressure in later session, we saw S&P 500 closing flat and NASDAQ losing due to NASDAQ.

We might see some investors planning to take some profits in some of the mega cap stocks while they assess whether there is potential of Nvidia despite a slowdown in pace of growth.

Appreciate if you could share your thoughts in the comment section whether you think market would suffer another mixed performance today (30 Aug).

@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.