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Dow hits record, S&P 500, Nasdaq rise despite Nvidia share decline

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Dow hits record, S&P 500, Nasdaq rise despite Nvidia share decline

The Dow hit a new record high on Thursday, while other major averages also rose as investors weighed in on earnings from Nvidia (NVDA), which reported stronger-than-expected U.S. economic growth.

The Dow Jones Industrial Average (^DJI) rose more than 350 points to a new record. The tech-heavy Nasdaq Composite (^IXIC) rose more than 1%, while the S&P 500 (^GSPC) rose about 0.5% after losses for all three indicators.

Stocks appear to be turning positive after Wall Street took a bad look at Nvidia’s numbers. Nvidia’s stellar growth numbers have helped fuel the market’s rally this year.

While the AI ​​chipmaker’s quarterly profit and revenue forecasts topped estimates, the size of the beats fell short of high expectations, raising questions about whether the AI ​​boom had peaked. Wall Street remained bullish on the stock, but shares still fell as much as 3% during the session.

Elsewhere in earnings, shares of Salesforce ( CRM ) rose after a big profit win for the software maker. Shares of Best Buy ( BBY ) jumped 17% after the retailer posted better-than-expected results as sales stabilized. Meanwhile, shares of Dollar General ( DG ) fell 25% after the retail chain cut its full-year outlook and blamed weaker second-quarter sales on “financially constrained” customers.

The U.S. economy grew more than expected in the latest quarter, according to a reading of gross domestic product released Thursday. Second-quarter GDP rose at an annual pace of 3%, higher than a previous estimate of 2.8%.

The number of weekly jobless claims in the U.S. came in at 231,000, down from the previous week and below the 232,000 expected by economists.

Markets are closely watching economic data to determine how quickly and thoroughly the Federal Reserve will cut interest rates, now that Chairman Jerome Powell has made it clear that a cut is coming in September.

Live10 updates

  • Dow hits record, S&P 500, Nasdaq also rise despite Nvidia share decline

    The Dow Jones Industrial Average (^DJI) rose more than 350 points to a new record high in midday trading, while other major averages also rose.

    The tech-heavy Nasdaq Composite (^IXIC) outperformed, rising more than 1%, while the S&P 500 (^GSPC) rose 0.8%.

    Overall markets rose without the participation of AI chip heavyweight (NVDA). The stock failed to gain ground despite a strong quarterly print. Shares of Nvidia fell more than 3% on Thursday.

    However, the remaining stocks of the “Magnificent 7” rose during the session, as did stocks related to industrials (XLI) and energy (XLE).

  • Energy stocks rise as oil price jumps more than 2%

    Stocks in the energy sector rose Thursday, with the S&P 500 XLE (XLE) rising nearly 1% as oil prices rose.

    Ongoing geopolitical tensions and the halt to oil production in Libya saw crude oil futures prices rise more than 2% during the session.

    West Texas Intermediate (CL=F) rose to trade above $76 a barrel, while Brent (BZ=F), the international benchmark price, rose nearly 2% to trade around $79 a barrel.

  • Technology sector gains ground despite falling Nvidia shares

    The tech sector is experiencing a boom, but without the participation of Nvidia (NVDA).

    Shares of Nvidia fell as much as 3% during the session after the AI ​​chipmaker’s strong quarterly results failed to lift the stock.

    However, the remaining names in the “Magnificent 7” rose throughout the session, with the Nasdaq Composite (^IXIC) up about 1%.

    Nvidia was the only Mag 7 stock in the red on Thursday

  • Best Buy soars 17% after company reports beat-by-beat earnings, while sales decline stabilizes

    Shares of Best Buy (BBY) rose 17% on Thursday after the retailer reported better-than-expected results after a string of disappointing quarters.

    Yahoo Finance’s Brooke DiPalma reports:

    On Thursday, the electronics retailer reported revenue of $9.29 billion, compared with estimates of $9.24 billion. Adjusted earnings per share rose 10% year-over-year to $1.34, beating expectations of $1.16.

    CEO Corie Barry said in the press release that the numbers are the result of Best Buy’s focus on “sharpening” its customer experience and market positioning while “expanding our non-GAAP operating profit in the current environment.”

    She added that customers are “looking for value and sales events,” but are also “willing to spend money on higher-end products when necessary or when new, compelling technology is available.”

    Read more here.

  • Nvidia shares fall 2% as others in chip sector rise

    Shares of Nvidia (NVDA) fell 2% in early trading, while the rest of the semiconductor sector largely rose on Thursday, helping lift the Nasdaq.

    Nvidia’s quarter was strong, but it fell short of Wall Street’s exceptionally high expectations. Shares fell as much as 6% shortly after the company reported its quarterly results on Wednesday, but most of that drop was pared by the open.

    Many on Wall Street remained positive about Nvidia following the results, pointing to the strong quarter and dismissing the uncertainty surrounding the introduction of Nvidia’s next-generation Blackwell chip.

    “We’re watching the stock very, very closely. Blackwell is not a concern. It’s extremely bullish,” Beth Kindig, I/O Fund Lead Tech Analyst, told Yahoo Finance on Thursday morning.

    “Now, the valuation of a high flyer like Nvidia can sometimes be stretched. When we wrote the paper, we warned our members that this valuation looks a bit high,” she added.

    Nvidia was the semiconductor laggard on Thursday.

  • Dow, S&P 500, Nasdaq rise while Nvidia shares fall slightly

    U.S. stocks rose on Thursday, with the Dow leading the gains after strong quarterly results from Nvidia (NVDA) failed to convince investors and the latest GDP figures showed the U.S. economy grew more strongly than expected last quarter.

    The Dow Jones Industrial Average (^DJI) rose 0.7%, aiming for a return to record highs. The tech-heavy Nasdaq Composite (^IXIC) gained 0.5%, while the S&P 500 (^GSPC) rose about 0.3% after losses for all three indicators.

    Shares of Nvidia fell slightly after the AI ​​chip giant posted better-than-expected results, but investors were still unimpressed.

    Shares had fallen 6% in premarket but had recouped much of those losses by the open. Shares were down about 2% in early trading.

    Meanwhile, the U.S. economy grew more than expected in the second quarter, according to the latest gross domestic product print released Thursday morning. GDP rose 3% year-on-year for the three-month period, up from a previous reading of 2.8%

  • Dollar General drops 25% in premarket on lowered outlook, company cites ‘financially constrained’ customers

    Shares of Dollar General (DG) fell as much as 25% in premarket trading on Thursday after the budget retailer cut its full-year forecast and attributed lower second-quarter sales partly to “financially strapped” customers.

    Dollar General reported adjusted earnings per share of $1.70, compared with expectations of $1.79, and revenue of $10.21 billion, slightly below Wall Street’s $10.36 billion.

    The company is undergoing a “Back to Basics” improvement plan under CEO Todd Vasos, who returned to Dollar General last year.

    The latest quarterly figures show that there is pressure on consumers with lower incomes.

    “While we believe the weaker sales trends are partly due to a core customer feeling financially constrained, we know the importance of controlling what we can control,” the company said in its earnings report.

    “Given the changing retail and consumer market, we are taking decisive action to further enhance our value-added and convenience offering, and to improve the shopping experience for our employees and customers.”

  • HP posts another challenging quarter

    Mixed quarter at best for computer and printer giant HP Inc (HPQ).

    The company has continued to experience pressure in its print business, partly due to the ongoing work-from-home dynamic. Meanwhile, the AI ​​PC ramp has yet to gain traction and remains a hype.

    “HPQ results showed signs of recovery in the PC market amid strength in the Commercial PS segment, which was enough to offset weaker revenue performance in Consumer PS and Print and deliver modestly better revenue in F3Q. However, macro headwinds are driving weaker performance in the other segments, which in turn is impacting margins and leading to a modest moderation in the earnings outlook for F4Q and FY24 from previous expectations,” JP Morgan analyst Samik Chatterjee said in a client note.

    I spoke with HP CEO Enrique Lores last night. You can watch part of that conversation below. Note what Lores said about the spread and impact of AI. I think we’re going to see a lot of cost savings in Corporate America next year because of AI, and we’re already seeing signs of that (just look at the mass layoffs recently announced at TurboTax vendor Intuit (INTU)).

  • Nvidia quick look

    Shares of Nvidia (NVDA) are taking a hit in premarket trading after the quarter fell short of Wall Street’s lofty expectations.

    But the earnings call certainly did that, I think. There was no indication on the call that demand is slowing down, in fact it was the opposite. Everything Nvidia talked about suggested a further acceleration in demand for its powerful AI chips.

    That said, I see Street estimates being revised this morning amid higher costs associated with Blackwell chip production.

    Ruben Roy from Stifel has some good points here:

    “Blackwell production is scheduled to begin in F4Q, with expectations for multi-billion dollars in revenue in that quarter, followed by volume increases continuing through F2026. In the near term, higher operating costs and modestly lower gross margin (new product mix) will dampen EPS growth. In the bigger picture, the modernization of data center computing continues and in our view NVDA remains the primary beneficiary.”

  • Salesforce wants to better capitalize on AI

    Shares of Salesforce (CRM) are rising after a quarter that saw prices rise after the close.

    I spoke with Salesforce Chairman and CEO Benioff and became very interested in the company’s new “agents” that it will deploy within businesses. These will essentially be AI-driven robots that interact with humans to do things like close deals and upsell.

    Interestingly, Salesforce charges customers per call for the product, which can add up.

    Below is my full conversation with Benioff following his earnings call last night.

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