Happy Friday!
Stocks take a round trip inAugust, capped off by volatility from Nvidia earnings.Railway strikes in the late 1800’s led to over 125 years of Labor Days. The DSGCA team loves the State Fair!
#1 - Weekly Market Summary
Stocks remained volatile during the final week of summer; falling, rising, then falling again.
Through market close Thursday, the Dow Jones rose +0.2% while the S&P 500 and the Nasdaq were both negative, down -0.5% and -1.2% respectively.
This week brings to a close a volatile August for stocks in general and the S&P 500 in particular. If an investor just looked at the level of the S&P 500 on August 1st and August 30th, they might draw the conclusion that it was a rather uneventful month for stocks.
But the chart below shows that August was anything but uneventful. Investors began the month with an “unwind of the yen carry trade” which resulted in an abrupt 6% pullback over 3 days. Just as abruptly, the S&P 500 then advanced for 8 consecutive days to within 2% of all-time highs. Stocks have made little progress over the past two weeks but remain up +17.3% through the first eight months of 2024.
#2 – Nvidia Earnings
US chipmaking giant Nvidia (NVDA) released quarterly earnings on Wednesday afternoon adding additional volatility to stock markets.
Investors view Nvidia as “ground zero” in the Artificial Intelligence (AI) wave, as the company designs chips that enable much of the advanced computing that AI requires.
Now the second largest company in the S&P 500, Nvidia earnings days have become a central focus for investors to monitor the unfolding AI story. In fact, some bars hosted “NVDA earnings watch-parties” on Wednesday. (WSJ)
For the second quarter, Nvidia reported 95% revenue growth and 150% earnings per share (EPS) growth over the last year. Specifically, Nvidia posted EPS of $0.68 on $26.3 billion in revenue, outperforming analysts' estimates of $0.64 EPS but falling short of $28.8 billion expected revenue.
The company also announced plans to buy back as much as $50 billion in outstanding shares.
Despite earnings beating analysts’ expectations, the stock fell -8% in overnight trading. Viewing this as a buying opportunity, investors bid the stock up Thursday morning, only to end Thursday down -6.4%.
Source: CNBC
With the upcoming launch of its next-generation Blackwell chips, Nvidia could be well positioned to maintain its leadership in the advanced AI chip industry.
Source: CNBC
#3 – Labor Day
Labor Day, viewed as the unofficial end of summer, is a time for relaxation, celebration, and reflection.
Labor Day is dedicated to honoring the contributions of American workers, recognizing their economic and societal impact. Celebrated on the first Monday of September, Labor Day has been recognized as a National holiday since June 28, 1894, when President Grover Cleveland signed it into law.
But its roots trace back even further to a time of great social and economic upheaval. In the late 19th century, during the height of the Industrial Revolution, American workers faced grueling conditions—long hours, low wages, and unsafe environments.
The labor movement emerged as workers banded together, demanding better treatment and fairer pay. Strikes and protests, including the Haymarket Riot of 1886 and the Pullman Strike of 1894, highlighted the urgent need for change. The latter strike, which severely disrupted railway traffic, led to the establishment of Labor Day to ease tensions and honor the workforce.
As you enjoy your Labor Day festivities—whether shopping, grilling, or simply relaxing—take a moment to appreciate the holiday’s deeper significance and the progress made to recognize workers in the US.
The Real Meaning of Labor Day, Explained (countryliving.com)
#4 – Minnesota State Fair
As we wrote last week, the “Great Minnesota Get Together” is in full swing! Viewed by many as the “12 best days of summer,” the Fair brings lasting memories to all that attend.
The DSG Capital Advisors team has enjoyed their time at the Fair this year. It was a great opportunity to unwind, enjoy some amazing food, and experience the local culture. From trying unique Fair treats to enjoying the live entertainment, everyone enjoyed the fair in their own unique ways.
Here are some of the favorites for each of our team members:
Denver - “All of it...there is never enough time to enjoy the Fair!”
Cynthia - “My favorite is the Fine Arts building…with all the art works by local artists. In a totally different vein, I love the sights and sounds of the cattle barn plus all the 4-H kids!”
Carrie - “I’m quite fond of the Arts and Crafts building to see all of the blue-ribbon winning baked goods!”
Jack – “A good fair day is anchored by fresh corn, a Pronto pup, and Sweet Martha’s cookies!”
Klair - “It’s always fun grabbing a drink, a spot in the shade, & listening to live music at the Leinie Lodge Bandshell Stage!”
Nicole - “I’ve seen some great concerts over the years!”
Ryan – “My favorite part of the fair is the beer garden and the live entertainment.”
Tracey - “It’s about the food. Especially the malts in the Dairy Barn.”
Below are a few pictures from the team enjoying their time at the fair.
Have a Great Labor Day Weekend!
Denver and the DSGCA Team