• Why did Nvidia's stock decline?
• What caused SMCI's stock to drop?
• What issues did Jake Sullivan raise during his visit to China?
MARKET MOVEMENTS
Dow Jones
S&P 500
Nasdaq
41,378.83(+0.70%)
5,608.40(+0.29%)
17,612.92(+0.32%)
Opening price as of 08/29/2024 compared to last close
IN THE HEADLINES
Nvidia Shares Fall Despite Beating Earnings Estimates
Nvidia’s shares fell over 1% despite exceeding Q2 earnings expectations, reporting $0.68 EPS and $30 billion in revenue, compared to forecasts of $0.64 EPS and $28.8 billion. The company also projected Q3 revenue of $32.5 billion, surpassing expectations. Although Nvidia’s data center business experienced a 154% revenue increase, the stock initially dropped by 6%. CEO Jensen Huang and CFO Colette Kress highlighted strong anticipation for the upcoming Blackwell chip and announced a $50 billion share buyback increase. Nvidia is also facing heightened competition from AMD. Read more
SMCI Stock Plunges as Super Micro Computer Delays 10-K Filing
SMCI stock plunged 19% on Wednesday after the company announced a delay in its annual report for the fiscal year ending June 30. Despite a significant surge earlier this year, Super Micro’s stock is now down over 60% from its March peak, although it remains up 50% year-to-date. Short sellers have gained over $840 million from the stock's decline. CFRA analysts have downgraded the stock, citing concerns about the delayed filing and potential reputational damage. Read more
U.S. Security Advisor Discusses Economic Curbs in Rare Trip to China
U.S. National Security Advisor Jake Sullivan addressed concerns about economic security with Chinese officials, including President Xi Jinping, during his visit to Beijing this week. Sullivan raised issues such as unclear data regulations and preferential treatment for local businesses that impact Western firms. Xi expressed hope that Washington would find a "right way" to engage with China, aiming for a stable bilateral relationship. The visit was part of efforts to manage rising tensions between the two largest economies, which have escalated over trade, finance, and technology. Read more
TradeUP TIDBITS
U.S. Economic Growth Revised Up to 3% Annual Rate for Last Quarter
The U.S. GDP growth for the last quarter has been revised up to a solid 3% annual rate. Bill Adams, chief economist at Comerica Bank, commented, “The GDP revisions show the U.S. economy was in good shape in mid-2024. Solid growth in consumer spending drove the economy forward in the second quarter, and the rise in consumer confidence in July suggests continued growth in the second half of the year.”
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