The stock market weakened but still posted gains by early afternoon trading amid nervousness over the Fed's annual meeting in Jackson Hole, Wyo. In a tale of two software companies, Salesforce plunged while Snowflake soared on earnings in the stock market today.
The Nasdaq composite gained 1% and the S&P 500 added 0.7%. The small-cap Russell 2000 index outperformed as well, lifting 1%. The Dow Jones Industrial Average lagged but still eked out a gain of 0.2%.
Volume rose on the Nasdaq and the NYSE vs. the same time on Wednesday.
Stock Market Gains As All Eyes On Powell Speech
Today starts the annual three-day Jackson Hole Symposium, with all eyes on Fed Chairman Jerome Powell's speech on Friday morning. Investors hope to glean some insight into the Fed's next rate hike. Markets now see a 60.5% chance of a 75-basis-point hike in September, vs. a 39.5% likelihood the Fed will boost rates by 50 basis points.
Revised second-quarter GDP came in at a decline of 0.6% vs. the consensus of a 0.9% drop. The Annualized Personal Consumption Expenditures rate rose 1.5%, up from the prior report showing 1%.
Initial jobless claims were 243,000 in the week ending Aug. 20, vs. the consensus forecast for 245,000, a small positive sign for the job market. Initial claims decreased by 2,000, the same decrease as the prior week.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33048.20 | +78.97 | +0.24 |
| S&P 500 | (0S&P5) | 4167.89 | +27.12 | +0.65 |
| Nasdaq | (0NDQC ) | 12552.25 | +120.72 | +0.97 |
| Russell 2000 | 194.42 | +2.01 | +1.04 | |
| IBD 50 | 30.10 | +0.30 | +1.01 | |
Last Update: 1:34 PM ET 8/25/2022 |
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"Good news from the data in hand still don't cancel out the concerning messages of forward-looking indicators," said Bill Adams, chief economist for Comerica Bank. "These include dismal business and consumer surveys, the inverted yield curve, the drop in the Leading Economic Index, falling housing indicators, and energy futures contracts, which anticipate a surge in natural gas and electricity prices this winter. The U.S. economy weathered the shocks of the first of 2022 better than feared, but the worst is probably not over."
The 10-year Treasury dropped two basis points to 3.07%.
U.S. crude oil prices fell 0.5% to $94.40 a barrel.
A Tale Of Two Software Stocks
Salesforce cut its fiscal 2023 revenue outlook, citing currency exchange rates and slowing demand from retail and telecom customers. CRM stock tumbled more than 5% Thursday. Salesforce late Wednesday reported July-quarter earnings that fell from a year earlier but topped Wall Street targets.
Snowflake reported July-quarter revenue that handily beat Wall Street views. Guidance came in above expectations, sending the software stock soaring 22% Thursday. The move would be the largest percentage increase on record since its IPO in September 2020.
Snowflake said second-quarter revenue jumped 83% to $497.2 million from a year earlier. Analysts had estimated Snowflake revenue at $467.5 million. Revenue climbed 85% and 101% in the two previous quarters.
Discount retailers Dollar Tree and Dollar General reported earnings Thursday morning. Dollar Tree slashed its full-year outlook, while Dollar General beat estimates.
In stock market action today, DLTR stock fell more than 10%, its seventh down day in a row. It would be the longest losing streak since Oct. 31, 2019, when it fell for seven straight trading days. DG fell 1.5% Thursday.
Dick's Leads Retailers
Dick's Sporting Goods topped earnings estimates and raised its full-year guidance Tuesday. The Pennsylvania-based retailer has recovered some ground since slashing forecasts in May, amid rising costs. DKS stock jumped.
Dick's shares have climbed steadily off a late-May low, overtaking both their 10-week and 40-week moving averages.
Late Wednesday, chipmaker Nvidia reported a 44% sequential decline in gaming revenue for the second quarter. Total revenue of $6.7 billion was much lower than the company's lowered guidance of $8.1 billion. The company also lowered its fiscal third-quarter estimates to $5.9 billion, 17% lower than the same quarter last year. Nonetheless, shares in Nvidia jumped more than 2% Thursday.
Peloton plunged nearly 20% after reporting a Q2 miss on both EPS and sales. The stock move wiped out all of the previous day's gains, when Peleton announced it started selling its fitness equipment and apparel on Amazon.com.
The Innovator IBD 50 ETF outperformed with a 1% gain. IBD 50 stocks Axcelis Technologies and CF Industries topped buy points.
Follow Michael Molinski on Twitter @IMmolinski
