uploaded image

Tech Turbulence: Nvidia Leads Market Retreat as Stocks Decline for Second Day

By:JJ Kinahan

Earnings season continues as Walmart's revenue surges and HSBC's misses its profit goals suffers a profit miss

  • Tech stocks are faltering, led by Nvidia, amid a broader market decline signaling potential volatility ahead.
  • Earnings season is seeing mixed results; Walmart's revenue surge contrasts with HSBC's profit miss.
  • Amazon's Dow inclusion, Bezos's stock sales and anticipation of Nvidia's earnings underscore market shifts.

Yesterday marked a second consecutive day of stock declines, with the S&P 500 slipping by 0.6% and the Nasdaq Composite dipping by nearly 1%. Notably, technology stocks bore the brunt, evidenced by a 4.4% drop for Nvidia (NVDA).

Among the famed magnificent 7 stocks, six closed lower, with Google parent Alphabet (GOOG) as the sole gainer, up 0.4%. Losses included Tesla (TSLA), down 3.1%, and Amazon (AMZN), which fell by 1.4%. Nvidia, though hit hardest, retains a robust year-to-date gain of nearly 40%, even after tripling in value last year. The company is set to report earnings after hours.

Earnings season continues

Earnings season remains in full swing. The revenue surge at Walmart (WMT), driven by increased foot traffic and not price hikes, hints at potential easing of inflation pressures or consumer shifts towards cost-effective shopping. The retail giant's $2.3 billion acquisition of TV maker Vizio (VZIO) aims to enhance direct consumer advertising opportunities.

Home Depot (HD) exceeded sales expectations despite a decline in revenue, resulting in a slight uptick in its stock. Conversely, HSBC (HSBC) missed profit forecasts, citing a $3 billion "valuation adjustment" linked to its stake in China's Bank of Communications.

Palo Alto Networks (PANW) beat revenue and profit estimates but lowered full-year guidance, causing a substantial premarket dip of 23%.

Fubo TV (FUBO) challenges ESPN, Warner Bros. Discovery (WBD) and Fox Sports' new sports streaming service, alleging forced broadcasting of unwanted content.

Other news

China's economic revival efforts include major bank cuts to the five-year loan prime rate, targeting the housing market's stability.

Amazon's addition to the Dow Jones Industrial Average, replacing Walgreens Boots Alliance (WBA), highlights its growing influence. Jeff Bezos's significant stock sales, totaling $2.4 billion, are sparking speculation, possibly driven by tax considerations amid looming fiscal policy changes.

Nvidia's impending earnings report, with analysts anticipating a 240% increase in revenue to $20.6 billion, underscores its market-moving potential. Future guidance will be crucial for investors navigating this volatile landscape.

JJ Kinahan is CEO of IG North America—which includes tastylive, tastytrade and IG's FX Business. Kinahan traded for 21 years at the Chicago Board Options Exchange. He serves on the CBOE Advisory Board and the SIFMA Options Committee. @thejjkinahan 

For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.

Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Related Posts

tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.  Options, futures, and futures options are not suitable for all investors.  Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.

tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.

tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.

tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.

© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved.  Applicable portions of the Terms of Use on tastylive.com apply.  Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.