Are the markets heading even lower this week? This is on tap for the week ahead.
Week Ending August 2nd, 2024
Market Moves
Dow Jones - 39,737.26 (-1.51%)
Nasdaq - 16,776.16 (-2.43%)
S&P 500 - 5,346.56 (-1.84%)
Weekly Recap
The market pulled back. Equity markets closed sharply lower Friday following a softer-than-expected jobs report. For the week every major index closed lower. The S&P 500 and the NASDAQ fell for the third week in a row and the Dow snapped a four-week string of gains. The S&P 500 still managed to finish July with a 1.1% gain as the index posted its eighth positive month out of the past nine.
Disappointing job data. Investors saw the unemployment rate rise to its highest since 2021 while nonfarm employment grew by only 114,000 in July, well below expectations for 175,000. The unemployment rate rose to 4.3% from 4.1% the previous month.
Mortgage rates plunged to the lowest level in more than a year. The average rate on the popular 30-year fixed mortgage dropped 22 basis points to 6.4% Friday, according to Mortgage News Daily.
The Bond markets went higher on soft labor-market news. The 10-year Treasury yield declined nearly 20 basis points (0.2%) to around 3.8%, while the policy-rate-sensitive 2-year yield declined by nearly 30 basis points (0.3%) to 3.88%.
International markets headed lower. Asian markets were sharply lower overnight, with Japan's Nikkei shedding nearly 6%, while European markets sold off as well on U.S. growth concerns.
Earnings season continued this week. The biggest technology companies reported uneven results. Despite recent volatility, earnings at an index level have been strong for the second quarter. Roughly 75% of companies in the S&P 500 have reported second-quarter results and about 78% of those companies surpassed expectations.
The U.S. Federal Reserve held off on cutting interest rates. Fed Chair Jerome Powell said that an initial reduction could be on the table for its next meeting in mid-September if inflation continues to ease.
Gold futures hit record levels higher while gold hit the $2,500-per-ounce level on Friday for the first time ever. Gold's price was up4% for the week; year to date, the price was up about 20%.
Oil settles at 8-month low after disappointing US job numbers. Brent crude futures settled down $2.71, or 3.41%, to $76.81 a barrel. U.S. West Texas Intermediate crude futures settled down $2.79, or 3.66%, at $73.52.
Berkshire sold off a lot of Apple. It was revealed that Warren Buffett's Berkshire Hathaway sold nearly half its stake in Apple in the last quarter.
Most Active Stocks
Nvidia Corp. (NVDA)
Ford Motor (F)
Apple, Inc. (AAPL)
Tesla (TSLA)
Amazon (AMZN)
Biggest Gainers
Tandem Diabetes Care, Inc. (TNDM) +18.35%
Ultragenyx Pharmaceutical Inc. (RARE) +14.31%
Rocket Companies, Inc. (RKT) +12.30%
Twilio Inc. (TWLO) +11.71%
DoorDash, Inc. (DASH) +8.35%
Biggest Losers
Snap Inc. (SNAP) -26.93%
Intel Corp. (INTC) -26.06%
Universal Display Corporation (OLED) -18.99%
FormFactor, Inc. (FORM) -13.44%
Nomura Holdings, Inc. (NMR) -11.21%
Weekly Notables
Analyst Says Amazon is Still in Growth Mode
Amazon released its second-quarter results this week, missing out on revenue expectations but beating profit expectations. The company reported adjusted earnings of $1.26 per share versus an expected $1.04 per share. The company's third-quarter revenue and operating guidance also fell below expectations. According to Citizens JMP equity research analyst Nick Jones, who spoke to Market Domination, "Amazon still has global expansion opportunities. They continuously want to deliver things faster and faster. It's a really unique company too when you think about their advertising opportunity in combination with the retail." The analyst said that though the company is "massive" it is "still very much in growth mode. "Jones points out that AWS "outperformed" so the disappointing Q3 guidance was "a little bit of a surprise."
July is a Record for ETFs
State Street Global Advisors finds inflows into exchange-traded funds hit $127 billion. This was the best July ever and the firm's head of SPDR Americas research notes also confirmed it was the second largest monthly inflow ever. "Part of it is just the market," Matt Bartolini told CNBC's "ETF Edge" on Thursday. "We see investors deploy cash from the sidelines. A lot of cash was built up over the years. We started to see investors really make a concerted effort to continue to buy into this rally. We also saw sort of broadening in the market depth in terms of rotation take place."
\
Massive Job Cuts at Intel
Intel has revealed that the company is cutting 15% of its workforce, which translates to around 17,000 jobs. The news comes only months after the federal government gave Intel $8.5 billion in grants to help bring back chipmaking to the U.S., the company. "This is an incredibly hard day for Intel as we are making some of the most consequential changes in our company's history," Intel CEO Pat Gelsinger said in a note to employees this week. "Simply put, we must align our cost structure with our new operating model and fundamentally change the way we operate."
The Week Ahead
There isn't considerable economic data to deal with in the next week (other than Thursday's Initial and Continuing Claims reports). Investors should watch for any vulnerability linked to headlines that weigh on global uncertainty.
Data expected this week includes: The Institute for Supply Management's nonmanufacturing index on Monday. The Trade balance, U.S. Census Bureau on Tuesday. The Consumer credit, U.S. Federal Reserve on Wednesday. And weekly unemployment claims, U.S. Department of Labor on Thursday.
More earnings are on tap this week. Tyson Foods releases results on Monday, Caterpillar Inc., Uber Technologies, Airbnb, Amgen, and Devon Energy Corp. are scheduled to release on Tuesday. Wednesday will have results from Walt Disney Co., CVS Health Corp., Equinox Inc., and Occidental Petroleum Corp. Results scheduled for Thursday include Eli Lilly & Co., Expedia Group, Inc., and Gilead Sciences. Legend Biotech Corp. and Evergy Inc. will report on Friday.
Earnings Spotlight: Tyson Foods
This week Tyson Foods will be reporting results on Aug. 5. The company is expected to post third-quarter earnings per share of 61 cents, up 306% over the year-ago period ending June 30. Estimated net income will be $217 million in the fiscal quarter, up from a net loss of $417 million a year ago when Tyson incurred one-time charges of $448 million. Fiscal third-quarter revenue is forecast at $13.21 billion, down slightly from the $13.41 billion recorded a year ago. Analysts said Tyson is expected to benefit from 30% lower grain costs, and increased consumer demand for chicken and lower-priced meats than beef.
Disclaimer: We are engaged in the business of advertising and promoting companies. All content on our website is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. Neither the information presented nor any statement or expression of opinion, or any other matter herein, directly or indirectly constitutes a solicitation of the purchase or sale of any securities. Neither the owner of Trading Wire nor any of its members, officers, directors, contractors or employees are licensed broker-dealers, account representatives, market makers, investment bankers, investment advisers, analyst or underwriters. Investing in securities, including the securities of those companies profiled or discussed on this website is for individuals tolerant of high risks. Viewers should always consult with a licensed securities professional before purchasing or selling any securities of companies profiled or discussed on Trading Wire. It is possible that a viewer's entire investment may be lost or impaired due to the speculative nature of the companies profiled. Remember, never invest in any security of a company profiled or discussed on this website unless you can afford to lose your entire investment. Also, investing in micro-cap securities is highly speculative and carries an extremely high degree of risk. Trading Wire makes no recommendation that the securities of the companies profiled or discussed on this website should be purchased, sold or held by viewers that learn of the profiled companies through our website.
Some of the content on this website contains "forward-looking statements." Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential," or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which may be beyond a company's control, and cannot be predicted or quantified, and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. It is hereby noted that forward-looking statements contained herein may include everything other than historical information, involve risk and uncertainties that may affect a company's actual results of operation. A company's actual performance could greatly differ from those described in any forward-looking statements or announcements mentioned on this website or the websites contained within. Factors that should be considered that could cause actual results to differ include: the size and growth of the market for the company's products; the company's ability to fund its capital requirements in the near term and in the long term; pricing pressures; unforeseen and/or unexpected circumstances in happenings; etc. and the risk factors and other factors set forth in the company's filings with the Securities and Exchange Commission. However, a company's past performance does not guarantee future results.
Generally, the information regarding a company profiled or discussed on this website is provided from public sources tradingwire.com makes no representations, warranties or guarantees as to the accuracy or completeness of the information provided or discussed. Viewers should not rely solely on the information obtained through our website or in communications originating from our website. Viewers should use the information provided by us regarding the profiled companies as a starting point for additional independent research on the companies profiled or discussed in order to allow the viewer to form his or her own opinion regarding investing in the securities of such companies. Factual statements, or the similar, made by the profiled companies are made as of the date stated and are subject to change without notice and Trading Wire has no obligation to update any of the information provided. Trading Wire, its owners, officers, directors, contractors and employees are not responsible for errors and omissions.
From time to time certain content on this website is written and published by our employees or third parties. In addition to information about our profiled companies, from time to time, our website will contain the symbols of companies and/or news feeds about companies that are not being profiled by us but are merely illustrative of certain activity in the micro cap or penny stock market that we are highlighting. Viewers are advised that all analysis reports and news feeds are issued solely for informational purposes. Any opinions expressed are subject to change without notice. It is also possible that one or more of the companies discussed or profiled on this website may not have approved certain or any statements within the website. Trading Wire encourages viewers to supplement the information obtained from this website with independent research and other professional advice. The content on this website is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. Third Party Web Sites and Other Information This website may provide hyperlinks to third party websites or access to third party content.Trading Wire, its owners, officers, directors, contractors and employees are not responsible for errors and omissions nor does Trading Wire control, endorse, or guarantee any content found in such sites. Trading Wire does not control, endorse, or guarantee content found in such sites. By accessing, viewing, or using the website or communications originating from the website, you agree that Trading Wire, its owners, officers, directors, contractors and employees, are not responsible for any content, associated links, resources, or services associated with a third party website. You further agree that Trading Wire, its owners, officers, directors, contractors and employees shall not be liable for any loss or damage of any sort associated with your use of third party content. Links and access to these sites are provided for your convenience only. Trading Wire uses third parties to disseminate information to subscribers. Although we take precautions to prevent others from obtaining our subscriber list, there is a risk that our subscriber list, through no wrong doing on our part, could end up in the hands of an unauthorized party and that subscribers will receive communications from unauthorized third parties. We encourage viewers to invest carefully and read the investor issuer information available at the web sites of the United States Securities and Exchange Commission (SEC). The SEC has launched an investor-focused website to help you invest wisely and avoid fraud at www.investor.gov and filings made by public companies can be viewed at www.sec.gov and/or the Financial Industry Regulatory Authority (FINRA) at: www.finra.org. In addition, FINRA has published information at its website on how to invest carefully at www.finra.org/Investors/index.htm.
