Marketbites: Nvidia Crushes Earnings
MARKET PERFORMANCE:
Portfolio Manager Commentary:
Stocks ended higher on Wednesday as Wall Street awaited the latest quarterly figures from Nvidia, the high-flying chipmaker that’s been bolstered by the artificial intelligence craze on Wall Street. A decline in yields also buoyed sentiment among investors. “I think almost nothing matters right now to market direction over the short term outside of these Nvidia earnings because, obviously, the whole narrative with weakening manufacturing and still a somewhat puzzlingly strong consumer doesn’t necessarily jive with market direction at the moment because multiples have expanded,” said Todd Jones, chief investment officer at Gratus Capital.
Nvidia reported strong earnings after market close and subsequently rose 8% in extended trading. The chipmaker beat estimates and issued optimistic guidance. Revenue in the second quarter doubled from $6.7 billion a year earlier and increased 88% from the prior period. Nvidia also said it expects third-quarter revenue of about $16 billion, higher than the $12.61 billion forecast by Refinitiv. Nvidia’s guidance suggests sales will grow 170% on an annual basis.
Meanwhile, Nike fell for a 10th straight day, its longest slide on record, losing 2.7%. Foot Locker shares plunged 28.3% after reporting shrinking sales and lowering its forecast for the second time this year. Those moves come a day after Dick’s Sporting Goods suffered its worst day ever.
Chart of the Day:
The U.S. has at least 600 fewer nursing homes than it did six years ago, according to a Wall Street Journal analysis of federal data, even as the American population 65 and older is expected to increase to 81 million by 2040 from 56 million in 2020. The pandemic led to an increased preference for at-home elderly care, as many families avoided nursing homes. This, coupled with a pre-existing shortage of staff in the sector, further reduced the workforce.
Source: WSJ
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