The Dow Jones technical analysis displayed a cautious opening on Tuesday before losing momentum throughout the session. Traders are anxiously awaiting Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium in Wyoming later this week.
Retail Earnings and Market Sentiment
Market participants grappled with mixed retail earnings reports, which failed to boost overall sentiment. The upcoming Jackson Hole event holds the potential for market volatility, given last year’s broad-market selloff following Powell’s speech.
Focus on Fed’s Jackson Hole Symposium
The Federal Reserve’s annual economic symposium is scheduled to start this Thursday in Jackson Hole. Powell’s speech, scheduled for mid-morning Friday, is of particular interest due to its historical market impact. Economists predict Powell will emphasize the importance of labour market conditions in achieving price stability.
Lowe’s and Dick’s Sporting Goods Earnings
Lowe’s Companies saw a 3.8% surge in its stock price after reporting better-than-expected Q2 same-store sales and beating estimates on the bottom line. In contrast, Dick’s Sporting Goods suffered a 24.2% decline as its second-quarter earnings of $2.82 per share fell short. Revenue of $3.224 billion also missed expectations. The company attributed its results to elevated inventory shrink, notably shoplifting.
Semiconductor Stocks Affected by Arm’s IPO News
News of U.K. chip designer Arm filing for its initial public offering (IPO) caused semiconductor stocks like Advanced Micro Devices (AMD) and Qualcomm (QCOM) to slide. Arm, backed by Japan’s SoftBank Group, designs chips used in smartphones and electronics. The IPO, expected next month, is one of the year’s most anticipated.
Indexes Experience Mixed Results
The S&P 500 ended with a modest loss of 0.3% at 4,387, and the Dow Jones Industrial Average declined by 0.5% to 34,288. Financial stocks bore the brunt of the selloff, with downgrades to the credit ratings of regional banks being the primary cause. The Nasdaq Composite managed a slight gain, closing at 13,505.
Stock Futures Tick Up Ahead of Corporate Earnings
Stock futures inched higher early Wednesday as investors awaited corporate earnings reports, including Nvidia. Dow Jones Industrial Average futures gained 115 points, while S&P 500 and Nasdaq 100 futures climbed by 0.49% and 0.69%, respectively.
Retail Stocks and Earnings Ahead
Despite weak Dow Jones technical analysis in the prior session, Urban Outfitters shares rose over 5% after positive quarterly results. La-Z-Boy declined over 1% as the company anticipated ongoing challenges in furniture sales. Peloton, Foot Locker, Kohl’s, Abercrombie & Fitch, Nvidia, and Snowflake are among the household names set to report on Wednesday.
Market Performance and Upcoming Events
While the S&P 500 and Dow fell around 0.3% and 0.5%, respectively, the Nasdaq Composite eked out a marginal 0.06% gain. The market anticipates further economic data on new home sales and purchasing alongside the two-day Federal Reserve symposium in Jackson Hole, starting Thursday. Fed Chair Jerome Powell is slated to deliver remarks on Friday.
