Stock market today: Dow hits record, S&P 500, Nasdaq rise despite fall in Nvidia shares

Live10 updates

• Thu, August 29, 2024 at 6:11 PM GMT+2

  Dow hits record, S&P 500, Nasdaq also rise despite fall in Nvidia shares

  The Dow Jones Industrial Average (^DJI) gained more than 350 points to touch a new record high during midday trading, while the other major averages also rose.

  The tech-heavy Nasdaq Composite (^IXIC) outperformed to rise more than 1%, while the S&P 500 (^GSPC) increased 0.8%.

  The overall markets rose without the participation of AI chip heavyweight (NVDA). The stock failed to move higher despite a strong quarterly print. Shares of Nvidia fell by more than 3% on Thursday.

  However the rest of the “Magnificent 7” stocks rose during the session, along with Industrials (XLI) and Energy (XLE) related stocks.

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  Thu, August 29, 2024 at 5:40 PM GMT+2

  Energy stocks rise as oil surges more than 2%

  Energy related stocks rose on Thursday with the S&P 500 XLE (XLE) up almost 1% as oil prices surged.

  Ongoing geopolitical tensions and Libya’s halt on oil production sent crude futures up more than 2% during the session.

  West Texas Intermediate (CL=F) rose to trade above $76 per barrel, while Brent (BZ=F), the international benchmark price, increased almost 2% to exchange hands near $79 per barrel.

• Thu, August 29, 2024 at 5:25 PM GMT+2

  Tech sector gains, despite Nvidia stock falling

  Tech is having a moment — without the participation of Nvidia (NVDA).

  Shares of Nvidia lost as much as 3% during the session after the AI chip maker’s strong quarterly results failed to move the stock price higher.

  However the rest of the “Magnificent 7” names gained during the session, helping move the Nasdaq Composite (^IXIC) up roughly 1%.

  

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  Thu, August 29, 2024 at 4:35 PM GMT+2

  Best Buy soars 17% after company beats on earnings as sales decline stabilizes

  Best Buy (BBY) shares soared 17% on Thursday after the retailer posted better-than expected results following a series of disappointing quarters.

  Yahoo Finance’s Brooke DiPalma reports:

  On Thursday, the electronics chain reported revenue of $9.29 billion, compared to estimates of $9.24 billion. Adjusted earnings per share jumped 10% year over year to $1.34, more than the $1.16 anticipated.

  CEO Corie Barry said in the release that the numbers are a result of Best Buy’s focus on “sharpening” the customer experiences and market positioning, while “expanding our non-GAAP operating income rate in the current environment.”

  She added that customers are “seeking value and sales events,” but also “willing to spend on high price point products when they need to or when there is new compelling technology.”

  Read more here.

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  Thu, August 29, 2024 at 3:48 PM GMT+2

  Nvidia shares fall 2%, while others in chip sector rise

  Nvidia (NVDA) shares dipped 2% in early trading while the rest of the semiconductor space mostly rose on Thursday, helping lift the Nasdaq.

  Nvidia’s quarter was strong but it didn’t live up to exceptionally high Wall Street expectations. Shares dropped as much as 6% soon after the company released its quarterly results on Wednesday, but pared most of that decline by the open.

  Many on Wall Street remained positive on Nvidia following the results, pointing out the strong quarter and mostly brushing off uncertainty surrounding the ramp-up of Nvidia’s nextgeneration chip Blackwell.

  “We cover the stock very, very closely. Blackwell is not a concern. If anything its extremely bullish,” Beth Kindig, I/O Fund Lead Tech Analyst told Yahoo Finance on Thursday morning.

  “Now the valuation when you have a high flyer like Nvidia, can get stretched sometimes. Going into the print, we warned our members that this valuation is looking a little toppy,” she added.

  

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  Thu, August 29, 2024 at 3:36 PM GMT+2

  Dow, S&P 500, Nasdaq rise while Nvidia shares fall slightly

  US stocks gained on Thursday, with the Dow leading the advance after Nvidia’s (NVDA) strong quarterly results failed to impress investors and the latest GDP data showed the US economy grew more than expected last quarter.

  The Dow Jones Industrial Average (^DJI) rose 0.7% to eye a return to setting record highs. The tech-heavy Nasdaq Composite (^IXIC) gained 0.5%, while the S&P 500 (^GSPC) moved up roughly 0.3% on the heels of losses for all three gauges.

  Nvidia shares fell slightly after the AI chip heavyweight posted better than expected results, but still failed to impress investors.

  The stock had fallen as much as 6% in pre-market but regained much of those losses by the open. Shares fell roughly 2% in early trading.

  Meanwhile, the US economy grew at a stronger pace than expected in the second quarter, according to the latest gross domestic product print released on Thursday morning. GDP increased 3% on an annualized basis for the three month period, up from a prior reading of 2.8%

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  Thu, August 29, 2024 at 3:15 PM GMT+2

  Dollar General tanks 25% in pre-market amid outlook cut, company cites “financially constrained” customers

  Dollar General (DG) shares tanked 25% in pre-market on Thursday after the low-cost retailer cut its full year outlook and partially blamed softer sales in the second quarter on “financially constrained” customers.

  Dollar General posted adjusted earnings per share of $1.70, versus expectations of $1.79, alongside revenue of $10.21 billion, just under the $10.36 billion expected by Wall Street.

  The company has been undergoing a “Back to Basics” improvement plan at the helm of CEO Todd Vasos, who returned to Dollar General last year.

  The latest quarterly results highlighted pressure on the lower-income consumer.

  “While we believe the softer sales trends are partially attributable to a core customer who feels financially constrained, we know the importance of controlling what we can control,” the company said in its earnings release.

  “With the evolving retail and consumer landscape in mind, we are taking decisive action to further enhance our value and convenience offering, as well as the in-store experience for our associates and customers.”

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  Thu, August 29, 2024 at 12:10 PM GMT+2

  HP logs another challenging quarter

  Mixed quarter at best for computer and printer giant HP Inc (HPQ).

  The company continued to see pressure in its printing business, in part because of the ongoing work-from-home dynamic. Meanwhile, the AI PC ramp has yet to take hold and remains a lot of hype.

  “HPQ results held signs of a PC market recovery in the strength of the Commercial PS segment being enough to offset the weaker revenue outcomes in Consumer PS as well as Print to deliver modestly better revenue in F3Q. However, the macro headwinds are driving softer results in the other segments, which is in turn is impacting margins, and leading to a modest moderation in the earnings outlook for F4Q and FY24 relative to prior expectations,” said JP Morgan analyst Samik Chatterjee in a client note.

  I caught up with HP CEO Enrique Lores last night. You can watch part of that chat below. Take note of what Lores said about the spread and impact of AI. I think a lot of cost-cutting is coming to Corporate America next year because of AI, and we are seeing signs of it already (check out the mass layoffs recently announced at TurboTax seller Intuit (INTU)).

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  Thu, August 29, 2024 at 12:04 PM GMT+2

  Nvidia quick take

  Nvidia (NVDA) shares are getting hit pre-market as the quarter didn’t live up to super high Wall Street expectations.

  But the earnings call sure did, I think. There was no indication from the call that demand is slowing, actually quite the contrary. Everything Nvidia talked about suggested a further acceleration in demand for its high-powered AI chips.

  That said, I am seeing the Street tweak estimates this morning amid higher expenses related to the production ramp for Blackwell chips.

  Good points here by Ruben Roy over at Stifel:

  “Blackwell production ramp is scheduled to begin in F4Q, with expectations for several billion dollars in revenue in that quarter followed by volume increases to continue into F2026. In the near-term, higher operating expenses and modestly lower gross margin (new product mix) will moderate EPS growth. Bigger picture, the modernization of data center compute continues and, in our view, NVDA remains the primary beneficiary.”

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  Thu, August 29, 2024 at 11:59 AM GMT+2

  Salesforce aims to better monetize AI

  Salesforce (CRM) shares are on the move higher following a comeback quarter after the close.

  I caught up with Salesforce chairman and CEO Benioff, and came away very interested in the company’s new “agents” that it will begin deploying within companies. These will basically be AI-powered robots that interact with humans to, say, close deals and upsell.

  Interestingly, Salesforce will charge clients per conversation for the product — which could add up to real money.

  Here is my full chat with Benioff following his earnings call last night.