Nasdaq surges as market weighs GDP print, Nvidia earnings
Published On Aug 29, 2024, 10:09 AM
The Dow Jones Industrial Average reached a record high, gaining over 200 points, while other indices like the Nasdaq and S&P 500 finished lower. Investors are reacting to Nvidia's disappointing earnings, despite the company posting profits that exceeded expectations but falling short of high forecasted growth. Meanwhile, Salesforce shares surged after strong earnings, and Best Buy's stock rose 17% following their positive performance. However, Dollar General shares plummeted over 30% after the company cut its outlook due to weaker customer spending. Additionally, the US economy's GDP growth outpaced predictions, raising questions about interest rate adjustments by the Federal Reserve.
Stock Forecasts
NVDA
Negative
Nvidia's recent earnings report did not meet the high expectations set by investors, causing a significant drop in its stock. As its growth is anticipated to decelerate, investors should be cautious about entering this stock now.
CRM
Positive
Salesforce has shown strong growth and continues to innovate, which could drive positive investor sentiment. This makes it a potential buy as its performance seems to be improving in a competitive landscape.
BBY
Positive
Best Buy performed better than expected, indicating a possible recovery in consumer electronics sales. This could provide an opportunity for growth as the retail environment stabilizes.
DG
Negative
Dollar General's significant drop suggests ongoing issues with its business model and consumer spending, resulting in strong headwinds for future performance. Investors should reconsider this stock as long-term prospects look dim.
XLI
Positive
The strong GDP growth indicates economic resilience, which can positively impact various sectors such as Industrials and Consumer Discretionary, potentially making ETFs like XLI (Industrials) a good investment.
XLE
Positive
The recent rise in oil prices amid geopolitical tensions may bolster energy sector stocks, suggesting an investing opportunity in energy-focused ETFs like XLE.
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