Nvidia (NVDA) is now a three trillion dollar company. Its quarterly revenue of $32.5 billion was above expectations. Its gross margin of 75$ bests all but one competitor. The stock slipped 6% Thursday on this report.
Heard on the Street Thursday, Wall Street Journal
As the Dow Industrials achieves all-time record highs, expectations are matching those new heights. Let’s take a look at some examples.
Dollar General (DG) shares dropped 32% Thursday on a lower outlook for the year. Their shoppers typically earn less than $35K. Inflation has squeezed their ability to buy. And Walmart is taking some share as well. Dollar Tree shares fell 10% on the negative outlooks for Dollar General.
High end sandal maker Birkenstock quarterly revenue grew 19% to $628M. Not good enough apparently, the stock dropped 16% Thursday.
Campbell Soup has acquired pasta sauce maker Rao. That helped increase revenue 11%. The stock price dropped 2%.
In a bull market all news is bullish. This is not the case as a market matures and investors just can’t be satisfied.
GAP shares closed up 9% on improved turnaround efforts. Profits were $206M compared to $117M for the same period a year ago.
Best Buy shares jumped 14% though comparable sales were off 20.3%. The retailer got high marks for re-inventing itself amid the brick and mortar versus online battle. But sales are down for 11 straight quarters. Market share may be slipping.
In the big picture the Industrials are out-performing due to the lack of tech shares. Today (Friday) it stands at 41,372. Momentum indicators are about maxed out. And we are on the cusp of the start of fall seasonal weakness for stocks. Major lows, as well as crashes, tend to happen in October.
The SPX is marking a high which is lower than mid-July. Both Industrials and SPX look to be a week or so from rolling over.
The tech heavy NASD 100 NDX has issued a daily sell signal based on the Parabolic Stop and Reverse system. Tech led on the way up and is doing so on the way down. None of the Magnificent Seven tech stocks are at new highs.
Crude oil is off $1.95 to $73.96. The trend is no longer up. Support is just above $70. My outlook for the energy sector has turned negative.
Disclosure, I sold most of my gold and silver ETFs this week. Gold looks to be flattening around $2,514. December silver cannot vault through $30. Lower prices for both appear likely.
