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Good morning friends!
Futures are mixed with tech stocks rising after Nvidia’s blowout earnings report.
Let’s get right to it!
Nvidia (NVDA) shares are rallying 6.3% ahead of the open after crushing Q2 expectations and issuing blowout guidance.
Here’s how the chipmaker’s results compared to analysts’ estimates:
Revenue doubled from a year ago and surged 88% from Q1.
Nvidia cited strong demand for AI chips for that growth.
The CEO said, “The world has something along the lines of about a trillion dollars worth of data centers installed, in the cloud, enterprise and otherwise. That trillion dollars of data centers is in the process of transitioning into accelerated computing and generative AI.”
The CFO said Nvidia would not be immediately impacted by the Biden administration’s proposed chip export restrictions.
The chipmaker forecast Q3 revenue of $16 billion, beating expectations for $12.61 billion and implying 170% year over year growth.
The beat is boosting other stocks across the sector with the VanEck Semiconductor ETF (SMH) up 2.6%.
Dollar Tree (DLTR) shares are falling 7.0% in premarket trade after beating Q2 sales expectations but issuing weak guidance.
Here’s how the discount retailer’s results compared to analysts’ estimates:
Dollar Tree said its expects between $0.94 and $1.04 in Q3 EPS, missing analysts’ expectations for $1.27.
The company also lowered its full-year EPS forecast to between $5.78 and $6.18 vs $5.73 to $6.13 previously.
Boeing (BA) shares are dropping 2.6% ahead of the open after revealing a new manufacturing defect with the 737 Max.
The plane maker said the fastener holes on the after pressure bulkhead on some 737 planes were improperly drilled.
The issue is not related to flight safety but will delay the delivery of dozens of 737 Max planes.
Boeing said, “This issue will impact near-term 737 deliveries as we conduct inspections to determine the number of airplanes affected, and complete required rework on those airplanes.”
Spirit AeroSystems (SPR), which manufactures the Max fuselage, said only some units are affected because it “uses multiple suppliers for the aft pressure bulkhead.”
Spirit AeroSystems said, “We are working closely with our customer to address any impacted units within the production system and address any needed rework. Based upon what we know now, we believe there will not be a material impact to our delivery range for the year related to this issue.”
Weekly jobless claims fell more than expected last week in the latest sign of strength in the labor market.
The Labor Department reported 230,000 Americans filed initial claims for unemployment benefits last week.
That was down by 10,000 from the week before and lower than 240,000 expected.
Continuing claims fell by 9,000 to 1.70 million in the week ending August 12.