What happened in the markets : 05 August - 09 August 2024
Aries Yuangga, Wakil Penasihat Berjangka
The financial markets are often described as the heartbeat of the global economy, where every pulse reflects the collective sentiment of investors, corporations, and governments. From fluctuations in stock prices to the release of economic data, each week brings its own set of challenges and opportunities. The week of August 05 - 09, 2024, was no exception. Amid earnings reports, geopolitical tensions, and economic data releases, investors navigated a complex landscape. In this article, we will dissect the events of the past week, highlight the top movers and shakers in the stock market, and offer a glimpse into what lies ahead in the coming week.
Last Week at a Glance
The first full week of August 2024 was characterized by a blend of optimism and caution, as investors focused on earnings reports and macroeconomic data that influenced market sentiment. The week began on a cautious note with the S&P 500 and Nasdaq opening lower due to concerns about rising bond yields and mixed economic data from the previous week. However, Tuesday saw a recovery driven by strong earnings from key technology and healthcare companies, though concerns about inflation persisted. Midweek, the Consumer Price Index (CPI) report showed elevated inflation, causing volatility. Thursday's Producer Price Index (PPI) data, revealing a significant rise in wholesale prices, led to a sell-off in high-growth tech stocks, while the energy sector gained on rising oil prices. By Friday, the market ended mixed, with the Nasdaq down, while energy and healthcare sectors provided some stability amid ongoing uncertainty.
Top movers & shakers🎢
Several individual stocks made headlines with significant price movements driven by a variety of factors, including quarterly earnings reports, analyst ratings, and strategic announcements. Among the notable movers were:
Akamai Technologies (AKAM): ☁️ Rose about 11% after reporting better-than-expected Q2 results and providing an improved full-year sales forecast.
Doximity (DOCS): 📈 Jumped 39% following strong quarterly results that exceeded Wall Street’s expectations.
E.l.f. Beauty (ELF): 💄 Fell about 14% after the company's fiscal full-year forecast disappointed investors.
Expedia Group (EXPE): 🏨 Gained 10% as the travel-booking company reported better-than-expected quarterly results.
Intel (INTC): 💻 Dropped 3.8% after Moody’s lowered its credit rating.
Nvidia (NVDA): 💡 Experienced a slight decline of 0.2% after an initial bounce, reflecting market concerns despite strong performance.
Paramount Global (PARA): 📉 Was up 0.9% following the announcement of a 15% cut to its U.S. workforce.
Sweetgreen (SG): 🥗 Surged 33% after reporting better-than-expected sales and an optimistic full-year growth forecast, boosting fellow restaurateur Cava Group (CAVA) by 7.5%.
Trade Desk (TTD): 📊 Jumped almost 13% following strong quarterly results that surpassed expectations.
The Week Ahead: August 12 - 16, 2024
Looking ahead, the coming week is expected to be less hectic but still filled with significant economic data releases and corporate earnings reports that could influence market direction.
Retail Sales Report (August 15, 2024): Scheduled for August 15, the July retail sales report will offer key insights into U.S. consumer spending. Strong results could boost retail stocks, while weaker numbers might raise concerns about consumer sector health.
Housing Starts and Building Permits (August 15, 2024): The July housing starts and building permits data, also due on August 15, will shed light on the housing sector's health amidst rising mortgage rates. Strong data could suggest resilience, while weak numbers may heighten fears of a slowdown.
Federal Reserve Minutes (August 16, 2024): The Fed will release minutes from its July meeting. Investors will scrutinize these for clues on future monetary policy, with any hints of a more hawkish stance potentially causing market volatility.
Key Earnings Reports
The earnings season continues, albeit at a slower pace compared to the previous week. Key companies scheduled to report include:
Home Depot (HD): 🏠 Investors will be looking at Home Depot's earnings to gauge consumer spending trends in the home improvement sector. With inflation and interest rates impacting housing, the company's outlook on demand for renovations and repairs will be critical.
Walmart (WMT): 🛒 Walmart's earnings will provide valuable insights into consumer behavior, especially in a high-inflation environment. Analysts will focus on the company’s performance in groceries and essentials, as well as its international operations.
Cisco Systems (CSCO): 🌐 Cisco’s earnings will be indicative of enterprise spending on networking hardware and services. The company's commentary on IT spending trends and cybersecurity demand will be key areas of focus.
Applied Materials (AMAT): 🧩 As a leading semiconductor equipment supplier, Applied Materials’ earnings will shed light on the health of the semiconductor manufacturing industry. Investors will watch for any updates on order backlogs and supply chain dynamics.
Conclusion
The week of August 05 - 09, 2024, saw mixed market performance amid a backdrop of fluctuating economic data and corporate earnings. While the S&P 500 and Nasdaq faced early declines due to rising bond yields and inflation concerns, they rebounded midweek on strong earnings from key sectors. The CPI and PPI reports introduced volatility, impacting high-growth tech stocks and boosting energy shares. Individual stock movements were notable, with significant gains for Akamai Technologies, Doximity, and Sweetgreen, while E.l.f. Beauty and Intel faced declines. Looking ahead, key economic data releases and earnings reports will be pivotal in shaping market direction.
Source:
https://www.schwab.com/learn/story/schwab-market-update
https://www.edwardjones.com/us-en/market-news-insights/stock-market-news/stock-market-weekly-update
*Disclaimer:
This information is provided for general information purposes only. Consider your investment objectives, financial resources and other relevant circumstances carefully before investing. This is not an invitation or an offer to invest, nor is it financial advice or a recommendation to buy or sell any investment.
