All markets are waiting for the Nvidia report, stock exchange, corporate and international news
Market Reviews
• Nvidia is keeping the investment world on edge ahead of today's earnings report, which, even if it shows an expected doubling of second-quarter revenue, may not satisfy investors accustomed to market-beating performance. Before the launch of artificial intelligence (AI) chatbot ChatGPT less than two years ago, the chipmaker's market value was about $390 billion. It is now worth nearly $3.2 trillion and in June briefly became the world's most valuable chip company, which powers the hardware that powers the artificial intelligence computing boom. The company's scale and position as an industry leader mean its earnings, which are due after the US close on Wednesday, could ripple across the entire market. Ahead of the data, trading volumes were low and fluctuating, while European stock futures remained flat.
• Europe's data and reporting calendar is mostly thin, with eurozone broad money growth expected to come in at 2.7%, while markets are focused on Nvidia's results ahead of European and US inflation measures due later this year week.
• Options prices show traders are bracing for a nearly 10% swing in Nvidia shares in Thursday trading, which in dollar terms would represent more than $300 billion in market value - likely the biggest market move in earnings history.
• This would be larger than the market capitalization of 95% of the companies in the S&P 500 and would likely send shockwaves through the global semiconductor sector, according to LSEG.
• Sterling was near a 2.5-year high on Wednesday, one of the biggest beneficiaries of the dollar's decline. Traders expect around 100 basis points of interest rate cuts in the US this year, versus just 40 basis points in the UK.
• Super Micro (SMCI) shares fell 3% on Tuesday. Hindenburg Research downgraded the server hardware maker that has become a tech market darling as a major beneficiary of the AI boom: "New evidence of accounting fraud, self-dealing and sanctions evasion at this high-profile AI company."
• PDD, Temu's parent company, lost $55 billion in capitalization after warning of an "imminent" decline in profits.
Securities of the Chinese retailer fell 30%.
• Telegram came out on top in France in terms of the number of downloads after Durov’s arrest. The app also rose to second place in the US and increased international downloads by 4%.
• Toyota and BMW will create an alliance to produce fuel cell cars - Reuters. The joint efforts of these two giants could accelerate the adoption of hydrogen technologies and make them more accessible to the general public.
• Binance confiscated all funds from all Palestinians at the request of the IDF - CEO of NoOnes. They refuse to return the money. All appeals were rejected.
• Cerebras launches artificial intelligence tool to challenge Nvidia. Cerebras Systems launched a tool Tuesday for artificial intelligence developers that allows them to access the startup's large chips to run applications, offering what it says is a much cheaper option than standard Nvidia processors.
• NFL owners are set to vote on whether to sell stakes in their franchises to private equity. Potentially joining the trend of professional sports leagues attracting institutional investors.
• China Evergrande's electric vehicle unit warns of a larger loss in the first half. China Evergrande New Energy Vehicle estimated a consolidated net loss of about 20.25 billion yuan ($2.84 billion) for the six months ended June 30, compared with 6.87 billion yuan in the same period a year earlier. The company is looking for a buyer./ Yes, this is a company from the same notorious development group Evergrande. When home sales began to slow down, the company began to develop a new business segment. But it burned out here too.
• A member of the Intel board of directors resigned after disagreements over the plan to revive the chipmaker. The sudden resignation of a senior Intel board member followed disagreements with CEO Pat Gelsinger and other directors over what he saw as an overstaffed workforce, a risk-averse culture and a lagging artificial intelligence strategy.
The Panama Canal is easing restrictions. Which have caused problems with global shipping as water levels return to normal after a severe drought.
Eli Lilly is lowering prices on Zepbound for self-pay patients. Eli Lilly is trying to ease shortages of its weight-loss drug Zepbound GLP-1 by releasing bottles and lowering prices for patients who pay out of pocket.
• Pfizer, joining Lilly, enters the direct sales market with a telemedicine and prescription platform. She hopes this will help patients gain access to medications faster.
• BMO's credit rating is downgraded and shares fall amid credit-related losses. Bank of Montreal shares fell on concerns the bank is overexposed to commercial loan losses and its executives warned of more trouble ahead.
• CME launches a smaller "Friday futures" contract for Bitcoin in an attempt to attract retail investors. Which may be rejected by the exchange's existing cryptocurrency offerings.
• Salesforce (CRM) results are a key test for software stocks spending on AI. Investors are increasingly asking when software companies will start seeing returns on the investments they've made in artificial intelligence.
• Marathon Digital Holdings (MARA) reports strong revenue growth amid high losses in 2Q24.
• Bitcoin miners are showing strong revenue growth but questionable operating profitability.
• Nasdaq seeks SEC approval for Bitcoin index options. The US Securities and Exchange Commission has not yet approved options based on any of the individual exchange-traded funds linked to BTC spot prices.
• JD-com announced a $5 billion buyback. This is 12% of Mcap. / But there is no line of people wanting to buy the “Chinese miracle”. Chinese businesses have lost confidence.
• A representative of the Bank of Japan confirmed its readiness to further raise rates.
• PVH shares are down 8% in premarket trading. Sales at Calvin Klein parent company PVH are falling amid "challenging" conditions in Asia.
• JWN shares are up 8% in premarket trading. The department store chain raised the lower end of its full-year sales forecast.
• AMBA shares are up 19% in premarket trading. The semiconductor company posted better-than-expected second-quarter results and forecast revenue growth well above Wall Street expectations.
• BOX shares are up 7% in premarket trading. The cloud storage company reported well and raised its forecast.
• CrowdStrike (CRWD) adds new security measures for Nvidia's AI assets. The stock market reaction is neutral.
• ELF shares are up 4% in premarket trading. The Elf Beauty board of directors approved a $500 million buyback.
Key events that may affect markets on Wednesday:
- Income: Nvidia
- Economy: M3 growth in the eurozone, unemployment in France
International reviews
• US home prices hit another record high in June. The S&P CoreLogic Case-Shiller National Home Price Index rose 5.4% year over year to 325.23.
US consumer confidence rose to a six-month high in August.
There is optimism about the economic outlook, but Americans are becoming increasingly concerned about the job market after the unemployment rate jumped to a nearly three-year high of 4.3% last month.
• The EU trade surplus in the second quarter of 2024 amounted to €40.4 billion.
This is the 4th consecutive quarter with a surplus, which indicates that the Eurozone economy has overcome the economic shocks caused by the Russian military operation in Ukraine
• Britain's new prime minister warns of tax hikes
“I'll be honest with you, there's a budget coming up in October and it's going to be painful. Things are going worse than we could have imagined. I did not imagine that a black hole of 22 billion pounds sterling would form in the state’s finances.”
/ At first, officials promised well, got into debt and accelerated inflation. And now the next step is inevitable: raising taxes.
The social revolution is getting closer.
• Kazakhstan's GDP will grow by 6% in 2024
and by 5.6% in 2025.
/ To whom is war, to whom is loot. Kazakhstan has become a wide window for Russian foreign trade with the world.
• Kamala Harris and Tim Volz will do a joint interview with CNN on Thursday. Debate talks between Harris and Trump stalled - Politico
In particular, there was disagreement between the teams over whether both speakers would be microphoned during the debate. Harris' campaign requires that the microphones be turned on at all times, since Trump may not restrain himself during the debate and say “something impolite into the microphone.”
• The UAE appealed to the French government with a request to provide them with access to the detained Telegram founder Pavel Durov. Who, along with Russian and French citizenship, also has UAE citizenship, wrote Afra Al-Hameli, a representative of the country's Ministry of Foreign Affairs, on Platform X.
• The first euro-pegged stablecoin appeared in the European Union. EURI is the first e-money token launched by Banking Circle and the first MiCA regulated stablecoin issued and backed by a bank in the EU.
• Political crisis in France: Macron did not accept the candidacy of the prime minister put forward by the bloc of leftist forces. They, in turn, threaten the president with impeachment and call on people to take to the streets.
• Italian Prime Minister Giorgia Meloni and her coalition are seeking to fill a €12 billion budget hole. Through measures such as cutting expenses and delaying retirement.