All eyes were on NVDA and its pivotal earnings results this week. As many expected, Jensen Huang & Co. did not disappoint. There was a lot of excitement on the street with a double beat, a dividend increase, and a share buyback taking center stage in the announcement. The indexes responded well, initially, and despite a sharp selloff on Thursday, March highs were held on both the SPY and the QQQ. In other news:
- SEC approves spot ETH ETF
- Boeing’s deliveries delayed in China
- TrendSpider launches Market Maps
With all major earnings now in the rearview, are indexes cleared for a low volatility continuation higher, or was Thursday just a foreshadowing of what’s to come? Let’s dig into the individual charts and see where things ended up.
Weekly Analysis
SPY (SPDR S&P 500)
The SPY broke its four-week green streak, closing slightly lower at $529.51 (–0.002%), and nearly even with last week’s close. While Thursday’s selloff found the price testing the March highs, they appear to be acting as strong support for now.
QQQ (Invesco QQQ Trust)
With a little help from NVDA earnings, the QQQ ETF regained its place as the strongest of the three indexes this week, closing at $457.95 (+1.37%). Despite a nasty selloff on Thursday, support was found at the 8 EMA, and the price managed to stay above the March highs, as well.
IWM (iShares Russell 2000)
Small caps were again the underperformer this week, closing at $205.44 (-1.27%). The price tested the top of the range on Monday but was immediately rejected. By week’s end, a powerful close below the 8 EMA coincided with a bearish MACD cross, suggesting the possibility of a short-term trend reversal.
Earnings
Notable Results
ROST (Ross Stores)
- EPS: $1.46 vs $1.34 est
- SALES: $4.86B vs $4.83B est
INTU (Intuit)
- EPS: $9.88 vs $9.37 est
- SALES: $6.74B vs $6.65B est
WDAY (Workday)
- EPS: $1.74 vs $1.58 est
- SALES: $1.99B vs $1.97B est
TD (TD Bank)
- EPS: C$2.04 vs C$1.85 est
- SALES: C$13.88B vs C$12.23B est
MDT (Medtronic)
- EPS: $1.46 vs $1.45 est
- SALES: $8.59B vs $8.44B est
NVDA (NVIDIA)
- EPS: $6.12 vs $5.58 est
- SALES: $26.04B vs $24.65B
SNOW (Snowflake)
- EPS: $0.14 vs $0.18 est
- SALES: $828.71M vs $785.87M est
TJX (TJX Companies)
- EPS: $0.93 vs $0.87 est
- SALES: $12.48B vs $12.46B est
TGT (Target)
- EPS: $2.03 vs $2.06 est
- SALES: $24.53B vs $24.52B est
PDD (PDD Holdings)
- EPADS: $2.83 vs $1.42 est
- SALES: $12.02B vs $10.65B est
XPEV (XPeng)
- EPADS: $(0.21) vs $(0.27) est
- SALES: $906.90M vs $867.33M est
M (Macy’s)
- EPS: $0.27 vs $0.15 est
- SALES: $4.85B vs $4.86B est
AZO (AutoZone)
- EPS: $36.69 vs $36.20 est
- SALES: $4.24B vs $4.30B est
LOW (Lowes)
- EPS: $3.06 vs $2.94 est
- SALES: $21.36B vs $21.12B est
ZM (Zoom)
- EPS: $1.35 vs $1.20 est
- SALES: $1.14B vs $1.13B est
PANW (Palo Alto Networks)
- EPS: $1.32 vs $1.25 est
- SALES: $1.99B vs $1.97B est
What’s Happening Now
NVDA (NVIDIA)
NVIDIA surged over 12.84% this week, adding ~$298 billion to its market cap after reporting stellar Q1 earnings: revenue of $26.04 billion (+262% YoY) and EPS of $6.12 (+465% YoY). The company also increased its dividend by 150% and announced a 10-to-1 stock split effective Friday, June 7th.
GOOG (Google)
Google was reorganized in 2015 to be a wholly owned subsidiary of Alphabet, and since then, June has been Google’s worst-performing month with a long history of negative returns. However, with AI momentum driving a 9.65% rise in May, could this be the year Google turns the tide?
IWM (Russell 2000)
In terms of percent change, the next two weeks have historically produced outsized returns for the Russell 2000 for over two decades. At the same time, recent 13F filings have revealed that billionaire investor Stanley Druckenmiller has placed a $664 million bet on small-cap stocks via call options. Good timing?
Believe it or not, this is just a fraction of what happened in the markets this week. For a full run down delivered straight to your inbox every weekend, sign up for The Official TrendSpider Newsletter.
Market Update Into September 14th: Rate Hike Incoming?