Calendar

This Week – Scattered earnings with NVDA Wednesday post close being the big show. Fed Governors will be doing some post Jackson Hole cleanup.

Wednesday – NVDA earnings matter most. NTAP, CRWD, CRM, and HPQ report as well.

Thursday – GDP Second Release. Jobless Claims, BBY, DG, ADSK, and ULTA report.

Friday – PCE (this one matters)

Torrent Trading Observations

• Market continuing to work off the overbought ahead of tech earnings post-close tomorrow

• 5670 resistance, 5585/5560 support....   

• All about NVDA tonight, bar is high need a substantial beat and raise but will it be enough.  Focus is on supply constraints and future demand ahead of Blackwell. $130 has been recent resistance.

Futures

DOW -37

S&P -5

Nasdaq -18

10-Year Yield

Oil

BITCOIN

Consumer/Financial Healthcare

Crypto-linked stocks fell after Bitcoin posted its biggest drop since the turmoil that gripped global markets in early August.  Related names like MARA, RIOT, COIN and HOOD all down 1-2%.

BAC – JPM out highlighting how Berkshire continues to sell Bank of America, losing a new $982MM and $5.4B since mid-July.

Insurance – Bloomberg out saying the insurance rate shop around for Americans is the highest ever on ridiculous price increases.

Citi – Said to be targeting small and midsized businesses to grow its commercial bank – FT.

GS on Bank Capital Levels – Up modestly Q/Q, but so are requirements, leading to little excess capital creation from the likes of JPM and BAC.

ELF announced a $500MM buyback authorization

SHAK to close nine Company-owned and operated Shacks in California, Ohio and Texas

GlaxoSmithKline shares rise after the Delaware Supreme Court said it would review a lower court’s ruling regarding the cancer risks of Zantac - Bloomey

FL beat by 2c; revs beat by $10M. Comps +2.6% vs est +0.99%

WMT is moving deeper into the logistics market, offering more shipment/fulfillment/supply chain services to merchants, even those selling outside of the company’s own online marketplace – WSJ….Also, WMT is expanding the merchandise offered on its online market place as the firm looks to capture share from Amazon – Bloomey

KSS - rise 4.3% ahead of the bell after the retailer raised its full-year forecasts for EPS and operating margin, despite lowering its sales outlook. The stock has declined 32% this year through Tuesday’s close.

ANF - slide 11% premarket after the apparel retailer’s gross margin trailed expectations in the second quarter. The results aren’t sufficient to impress investors after the stock’s huge run.

ULTA - Deutsche Bank cut the target on Ulta Beauty Inc. to $448 from $552. Maintains buy rating.

LULU - Wedbush cut the target on Lululemon Athletica Inc. to $324 from $400. Maintains outperform rating.

Technology

Still quiet ahead of NVDA earnings after the close today. Beat and raise widely expected and company expected to downplay Blackwell delay issues. Several other higher-profile tech reporters (DELL, CRM, MRVL, CRWD, ADSK) on tap over the next couple of days.

Amazon and Microsoft are snapping up energy assets from bitcoin miners, driven by the ever-growing hunger of their AI and cloud data centers.

SMTC rises 4% after the semiconductor device company’s second-quarter earnings beat estimates.

AMBA up big following beat and raise with company noting strong IoT growth, slight Auto growth, largely normalized customer inventories and new wins.

SMCI – Under pressure again today following yesterday’s Hindenburg short report.

Industrials 

Hyundai announced plans to double its lineup of hybrid vehicles, and the company also unveiled a $3B buyback - Bloomey

AVAV – Upgrading to Outperform at Baird PT $220 from $161. on the heels of a record $990 million SwitchBlade contract awarded after the close yesterday, which locks in visibility for the loitering munition product through 2029. This record five-year IDIQ contract from the US Army will enable significant inventory levels of the SwitchBlade product, with FMS awards also just beginning to ramp. We are now modeling significant more growth for the SwitchBlade product and as a result our FY25-FY27 EPS estimates have been revised higher.