The Dow Jones Industrial Average and other indices fell on Thursday as attention turned to the Jackson Hole speech by Federal Reserve Chairman Jerome Powell. nvidia (NVDAGains faded despite the blowout earnings. Tesla (TSLA) CEO Elon Musk issued Cybertruck a warning to employees.
Powell’s speech looms large in the market
Stocks reversed lower as Powell prepared to deliver a much-anticipated speech at the economic symposium in Jackson Hole, Wyoming, on Friday.
Earlier Thursday, Labor Department data showed that first-time jobless claims unexpectedly fell to 230,000 from 240,000 in the previous week. Economists had expected the number to rise to 241,000.
Durable Goods Orders fell 5.2% in July, more than estimates for a 4% drop. Excluding transportation, durable goods orders rose 0.5%, above expectations.
“It seems like we’re getting constant reminders of how well this economy is doing and that keeps the risks of the Fed chair’s somewhat hawkish rhetoric on the table,” Edward Moya, senior market analyst at OANDA, told IBD. Today, we saw that jobless claims remain low and the Atlanta Fed continues to see the economy picking up in the third quarter.
Nasdaq gains evaporate as bears bite into small-cap stocks
The tech-rich Nasdaq saw early gains evaporate as it fell more than 1%. autodesk (ADSC) did well, up nearly 3% after the earnings report.
All sectors of the S&P 500 were in negative territory. Telecom services, consumer estimates, and technology were the worst in the stock market today. The financial and energy sectors suffered the least declines.
The bears benefited greatly from small stocks, with the Russell 2000 down about 1%. Growth stocks also took a hit, with the Innovator IBD 50 ETF (fifty) down more than 1%.
Dow Jones today: Boeing, Apple stock delays
The Dow Jones index also came under pressure as the closing approached. It fell nearly 300 points, or nearly 1%.
insurance stock travelers (luxury) did better on the Dow today as it was up nearly 1%.
Tesla shares decline; Elon Musk issues a warning about the Cybertruck
Tesla stock has been falling even though the much-hyped Cybertruck version seems to be getting closer to reality.
On Wednesday, Musk shared a photo of himself in one of the vehicles on X, formerly Twitter. “I just drove the production candidate Cybertruck in a Tesla Giga Texas,” He said.
And it turned out on Thursday that he shared an email explaining how important precision is when building the SUV.
“Due to the nature of the Cybertruck, which is made of shiny metal with mostly straight edges, any difference in dimensions appears like a sore thumb,” he said in a note on Wednesday. leaked to the electrician.
Musk also said that “precision denotes perfection” and said that parts “must be designed and manufactured with an accuracy of less than 10 microns”. Final pricing and specifications have not yet been announced.
In addition, Reuters reported that investors who were negatively affected by Musk’s tweet in August 2018 about taking the company private soon will receive compensation. It will come from a fund set up as part of a settlement with the Securities and Exchange Commission.
Tesla stock is down more than 2% and is trading below the 50-day moving average. However, TSLA is still up about 114% for the year.
Nvidia stock gains fade despite explosive earnings
Nvidia had an explosive opening before giving up much of its gains, though it remained up about 2% heading into the close.
It was boosted after the company reported earnings and revenue that far exceeded expectations. Adjusted earnings rose more than 400% to $2.70 a share. Revenue jumped 101% to $13.51 billion. Data center revenue doubled to $10.32 billion.
NVDA predicted sales of $16 billion in the current quarter, which exceeded expectations. This represents an increase of 170% over the same period last year.
Nvidia stock briefly hit an all-time high and is now up nearly 238% year-to-date. AI shares is a member of the prestigious IBD Leaderboard List of Top Stocks.
Outside the Dow: 3 stocks holding strength near entry points
With a stock market correction occurring, now is the time to build your watchlist. Here are some potential candidates who are showing strength.
Fund stock approached entering the cup with a handle at 31.94, MarketSmith’s analysis appears.
The database software has a very good IBD composite rating of 89 out of 99. Earnings are a major strength here.
NOV Oil and Gas Industry Equipment stock is approaching the buy cup handle point at 20.98. All-around performance is strong here. The RSI line has been looking strong lately.
Automatic data processing was only partially impaired as it was held near a handle mug with an entry point of 256.84. The RS line continues to show boldness.
The outsourcing and payroll services stock has a very good EPS rating of 93. It’s also in the top 23% of price-performing stocks over the past 12 months.
Please follow Michael Larkin on Twitter at @IBD_MLarkin For further analysis of growth stocks.
You may also like:
This big bet for Warren Buffett yet to pay off
These are the top 5 stocks to buy and watch right now
This Is Warren Buffett’s Ultimate Stock, But Should You Buy It?
This Is Donald Trump’s Ultimate Stock: Is DWAC An Option To Buy?