What happened in the markets : 19 August - 23 August 2024
Aries Yuangga, Wakil Penasihat Berjangka
The week of August 19 to 23, 2024, was a whirlwind for global markets, with investors grappling with a mix of earnings reports, economic data, and geopolitical developments. As we approach the end of August, market participants are increasingly focused on the Federal Reserve's next move, inflationary pressures, and the broader economic outlook. This article will provide a detailed overview of the major events and market movers during the past week and offer insights into what to expect in the coming days.
Last Week at a Glance
The global equity markets experienced significant volatility last week, primarily driven by mixed economic data and earnings reports. The S&P 500 and the Nasdaq Composite Index both ended the week in the red, with declines of 0.9% and 1.3%, respectively. Meanwhile, the Dow Jones Industrial Average showed relative strength, ending the week nearly flat, up 0.2%. Economic data from the U.S. continued to show a mixed picture. Retail sales for July exceeded expectations, rising by 0.7% month-over-month, which boosted consumer sentiment. However, housing data was less encouraging, with existing home sales falling by 2.2% in July, marking the third consecutive monthly decline. The Federal Reserve's meeting minutes also added to the uncertainty, revealing a divided stance among policymakers on the future path of interest rates. In Europe, inflation concerns persisted as the latest CPI data from the Eurozone showed a 5.3% year-on-year increase, raising fears of a more hawkish stance from the European Central Bank (ECB). Asian markets were impacted by concerns over China's economic slowdown, particularly after disappointing industrial production and retail sales figures were released.
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:
Nvidia (NVDA) 💡: Surged 8% after posting stellar quarterly results that exceeded expectations on both revenue and earnings. Nvidia’s dominance in the AI and data center markets continues to reinforce its leadership in the tech sector.
Target (TGT) 🛒: Tumbled 6% after reporting weaker-than-expected earnings and lowering its full-year guidance. The retail giant cited a slowdown in consumer spending and rising operational costs as the primary factors behind its disappointing performance.
Tesla (TSLA) 🚗: Dropped 5% following the announcement of price cuts on several of its models. While the move is likely to boost sales volume, it raised concerns about shrinking profit margins and increased competition in the electric vehicle market.
Pfizer (PFE) 💉: Gained 3% on the back of positive developments in its COVID-19 vaccine pipeline, which reassured investors about the company’s continued growth potential in the healthcare sector.
Moderna (MRNA) 🧬: Fell 4% as analysts expressed concerns over the company’s growth prospects in the post-pandemic era, despite its success during the height of the COVID-19 crisis.
The Week Ahead: August 26 - 30, 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.
Eurozone Economic Confidence (August 28, 2024) 💶: The Eurozone's economic confidence data, scheduled for release on August 28, will provide insight into the region's economic health amid ongoing inflationary pressures. Investors will be keen to see whether sentiment has improved or deteriorated, especially as the European Central Bank navigates its policy decisions.
U.S. Initial Jobless Claims (August 29, 2024) 📉: The U.S. initial jobless claims data for the week ending August 24 will be released on August 29. This report is a crucial indicator of the labor market's strength and will be particularly important as the Federal Reserve assesses its options on interest rates.
U.S. GDP Growth Rate for Q2 (August 29, 2024) 📈: The U.S. GDP growth rate for Q2 will be released on August 29. The preliminary estimate showed a 2.1% annualized growth rate, and any revisions could have a significant impact on market sentiment as investors gauge the overall health of the U.S. economy.
Core PCE Price Index (August 30, 2024) 💵: The Core PCE Price Index, the Federal Reserve’s preferred measure of inflation, is set to be released on August 30. This data will be closely watched by investors for clues on the Fed’s next move regarding interest rates, as it reflects the inflation trends that are most influential in monetary policy decisions.
Key Earnings Reports:
The earnings season continues, albeit at a slower pace compared to the previous week. Key companies scheduled to report include:
Salesforce (CRM) 📊: Salesforce is set to release its Q2 earnings on August 28, with expectations of solid revenue growth fueled by its expanding cloud business. Investors will be looking for updates on new customer acquisitions and any shifts in its strategic direction as it continues to dominate the enterprise software market.
Dollar General (DG) 💸: Reporting on August 29, Dollar General’s earnings will be closely watched for insights into how the discount retailer is navigating the challenging economic environment. With inflation impacting consumer spending, investors will be keen to see how the company is managing costs and driving sales in a tough market.
HP Inc. (HPQ) 💻: HP Inc. will release its Q3 earnings on August 30. The market is eager to gain insights into the company’s performance amidst a slowdown in PC sales. Analysts and investors alike will be focusing on HP’s strategy to maintain profitability in a declining hardware market.
Conclusion
The week of August 19 to 23, 2024, was marked by volatility in global markets, driven by mixed economic data, earnings reports, and geopolitical concerns. U.S. retail sales outperformed expectations, but declining housing data and uncertainty from Federal Reserve meeting minutes added to market jitters. European inflation worries persisted, while Asia was impacted by China's economic slowdown. Notable stock movements included Nvidia's surge, Target's decline, and Tesla's drop. As we look ahead, key economic data and earnings reports in the coming week will continue to shape market sentiment, particularly the U.S. GDP growth rate and Core PCE Price Index.
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.
