August 27th Market Overview

August 27th Market Overview (no fluff)

Author

J.L. Bernstein
August 27, 2024


Happy Tuesday everyone, this market “stability” is a treat in comparison to the last few weeks of volatility. Not to much going on today, I think everyone is anxious to see market reactions to NVDA’s earnings tomorrow.

Lets dig in…

Executive Summary

  • S&P 500 and Nasdaq close slightly higher, buoyed by Nvidia’s 1.5% gain

  • Consumer confidence strengthens in August, inflation outlook improves

  • Housing prices rose in June, but pace of increase eases

Market Overview

We’re seeing a cautiously optimistic market today. The S&P 500 rose 0.16%, while the Nasdaq crept up 0.16%. The Dow added 9.98 points, or 0.02%, closing at a new record high. The market is eagerly anticipating Nvidia’s earnings report, due after Wednesday’s closing bell.

Key Market Drivers

  1. Nvidia Earnings: The market is holding its breath for Nvidia’s Q2 results, which will gauge the health of the AI trade.

  2. Consumer Confidence: The Conference Board’s monthly survey showed the confidence index rising to 103.3, up 1.4 points from July.

  3. Housing Market: The S&P CoreLogic Case-Shiller 20-city composite index showed a 6.5% annual gain in June, down from 6.9% in May.

Stock Spotlight

  1. Hain Celestial Group (HAIN): Shares are up over 23% after beating fiscal Q4 earnings expectations.

  2. Trip.com (TCOM): U.S. shares popped 9% following better-than-expected Q2 revenue.

  3. Eli Lilly (LLY): Stock rose nearly 1% after launching a cheaper version of its weight loss drug.

  4. Hanesbrands (HBI): Jumped 6% on UBS analyst’s suggestion of a potential turnaround.

  5. Energizer Holdings (ENR): Gained more than 6% following a Truist Securities upgrade to buy.

Other Magnificent 7 Updates

  • Nvidia (NVDA): Shares advanced about 1.5% ahead of its crucial earnings report.

Other Notable Company News

  • Paramount Global (PARA): Stock dropped nearly 5% after Edgar Bronfman Jr. withdrew his bid for the company.

  • Cava Group: Fell more than 8% following insider selling disclosures.

  • JD.com: Climbed about 3% after announcing a $5 billion buyback program.

  • Super Micro Computer (SMCI): Shares down over 4% following a Hindenburg Research short-seller report.

Sector Watch

Sector

Symbol

% Change

Consumer Discretionary

XLY

-0.47%

Consumer Staples

XLP

+0.22%

Energy

XLE

-0.93%

Financials

XLF

+0.48%

Healthcare

XLV

+0.10%

Industrials

XLI

+0.01%

Materials

XLB

-0.01%

Real Estate

XLRE

+0.25%

Technology

XLK

+0.63%

Communication Services

XLC

-0.44%

Utilities

XLU

-0.74%

Bond Market

The 12-month inflation expectation dipped to 4.9%, the lowest since March 2020, according to The Conference Board’s monthly survey.

Policy Watch

Federal Reserve Chair Jerome Powell signaled on Friday that the central bank’s next move will be to cut benchmark interest rates, though he didn’t specify when or by how much.

P.S. Any “clicks” to our sponsor allows me to drink good coffee in the morning.

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- JB

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