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Dow Jones, Nasdaq, S&P 500 weekly preview

S&P 500 (SPX) fell 2.1% last week to mark the third consecutive week of selling. The index now trades about 5% below the most recent high.

NASDAQ Composite (IXIC) lost 2.6% to hit important short-term support at 13200. The 100 daily moving average sits at 13071. Dow Jones Industrial Average (DJI) also experienced a selloff, falling 2.2%.

“A combination of technical and fundamental factors have been pressuring equities in August, a month that’s already a seasonally weak time of year. Technically, the multi-month rally led to a crescendo of pain in July, as the advance proved too much for many people, prompting an avalanche of chasing and towel throwing (some of the most prominent bears flipped bullish last month),” Vital Knowledge analysts wrote in a report to clients.

Biggest Movers

Dow futures steady, Ross Stores up 5.5% after earnings

U.S. stock futures rose Monday, rebounding after a negative week with investors looking for guidance from the Federal Reserve’s annual get-together at Jackson Hole.

By 06:30 ET (10:30 GMT), the Dow futures contract was up 125 points, or 0.4%, S&P 500 futures traded 20 points, or 0.5% higher, and Nasdaq 100 futures climbed 85 points, or 0.6%.

The main equities indices retreated last week as investors digested rising bond yields and economic weakness out of China.

The blue-chip Dow Jones Industrial Average dropped 2.2% last week, while the broad-based S&P 500 fell 2.1%, and the tech-heavy Nasdaq Composite lost 2.6%, both recording their third consecutive losing week.

PBOC cuts one-year interest rate

However, the new week has started with a more positive tone, helped by the news that the People’s Bank of China has cut its one-year loan prime rate by 10 basis points to 3.45%.

While more had been expected, including a cut of the important five-year rate, this comes after the PBOC cut its short-term loan rates, as well as its medium-term lending facility rates last week, and shows Beijing is actively looking to support its faltering economy.

Jackson Hole symposium in spotlight

The U.S. Federal Reserve is also very much the focus of attention, with its policymakers set to gather at an annual symposium in Jackson Hole, Wyoming at the end of the week.

Friday’s speech by Chair Jerome Powell will be the highlight as investors look for clarity on the economic outlook and the future path of interest rates.

This comes after last week’s minutes of the central bank’s July meeting showed that most policymakers are still concerned about upside risks to inflation, indicating that further rate hikes cannot be ruled out.

Zoom starts new week of results

Video conferencing service Zoom Video Communications (NASDAQ:ZM) is set to deliver its latest quarterly results after the bell on Monday, kicking off a fresh week of corporate returns.

Once a pandemic-era powerhouse driven by remote working, Zoom has been hit by more workers coming back to physical offices, along with rising competition from similar offerings backed by big-name players like Microsoft (NASDAQ:MSFT) and Google (NASDAQ:GOOGL).

Palo Alto Networks (NASDAQ:PANW) stock soared over 12% higher premarket after the cybersecurity company delivered an upbeat outlook for the current quarter late Friday, touting further strength in billings growth.

Crude gains on tight supplies

Oil prices rose Monday, rebounding after last week’s selling, helped in part by the Chinese rate cut and also by expectations of lower output from a group of top producers in August.

The crude market weakened last week, ending a 7-week winning streak, on concerns higher U.S. interest rates and China’s slowing economic recovery will hit oil demand.

However, the prospect of tighter supplies, following deep output cuts from Saudi Arabia and Russia this year, the two leading producers in the group known as OPEC+, have helped support prices.

By 06:30 ET, the U.S. crude futures traded 1% higher at $81.47 a barrel, while the Brent contract climbed 1% to $85.61.

Additionally, gold futures edged lower to $1,916.20/oz, while EUR/USD traded 0.2% higher at 1.0896.

Source: Investing.com

Regeneron’s stock sprang into action like a caffeinated kangaroo in pre-open trading on Monday, leaping over 1% higher. The FDA’s Friday green light for EYLEA HD Injection 8 mg gave investors a reason to cheer, finally putting an end to the approval saga that had more twists than a mystery novel.

After the FDA’s unexpected plot twist with a Complete Response Letter in June, Wall Street’s financial sleuths were sent scrambling, only to have their detective work pay off with raised price targets. Now, folks grappling with eye issues can breathe a sigh of relief as EYLEA HD offers a treatment plotline with fewer injections and all the drama of visual improvements, anatomical enhancements, and safety precautions.

Investors eagerly await Nvidia’s upcoming earnings report, anticipating the company to exceed estimated quarterly revenue. The only remaining puzzle for them is to what degree Nvidia will outperform expectations.

Nvidia has emerged as the primary beneficiary of the surge in popularity of ChatGPT and similar generative AI applications, as virtually all of these rely on the prowess of its graphic processors.

With its shares having almost tripled in value this year, contributing over $700 billion to its market capitalization, Nvidia has achieved the remarkable status of being the inaugural trillion-dollar chip enterprise. Displaying strong momentum, the company’s shares saw a rise of over 2% in premarket trading on Monday.

Smart investing is like crafting a gourmet sandwich – you carefully layer diverse ingredients of knowledge, research, and timing. Just as you wouldn’t pile anchovies atop peanut butter, a savvy investor blends assets with strategic precision. They savor the tangy zest of high returns while staying alert to market trends, creating a financial masterpiece that leaves plain old sandwiches – and conventional strategies – in the crumbs.