The stock market is up midday, with a bunch of tech stocks gaining while Nvidia is falling.
The S&P 500 rose 0.8% and the tech-heavy Nasdaq Composite gained 1%. The Dow Jones Industrial Average rose 1% and the Russell 2000 index gained 1.2%.
Gross domestic product grew at a 3.0% annualized rate in the second quarter, revised up from the previously reported 2.8%. The economy expanded at a 1.4% rate in the first quarter. Weekly initial jobless claims fell to 231,000. Economists had expected 232,000 claims.
Trending stocks:
All Mag 7 shares rose except Nvidia, which lost 4% after reporting earnings on Wednesday.
Best Buy rose 15% to lead the S&P 500 index. Dollar General fell 30% after missing earnings expectations and weak forecasts.
Top S&P 500 stocks on the move today
Five S&P 500 stocks that are seeing big midday moves are:
- The best buy (BBY) +15.1%
- Cooper Enterprises (COO) +11.4%
- Ge Vernova (VGE) +5.8%
- Western Pharmaceutical Services (Average blank time) +5.8%
- Mass coup (CRWD) +5.5%
The five worst-performing and biggest decliners in the S&P 500 as of midday are:
- General Dollar Corporation (Managing director) -29.3%
- Dollar tree (DLTR) -9.8%
- NetApp Application (NTAP) -8.2%
- Bath and body works (BBWI) -4.2%
- NVIDIA Corporation (NVDA) -3.8%
Other stocks worth noting with significant moves include:
- Apple (APL-American Lead Association) +2.5%
- Tesla (TSLA) +2.9%
- amazon (amazon.com) +1.7%
- Stop Game (GME) +10.8%
- Arm (ARM) +6.7%
Nvidia falls despite surpassing results
Nvidia shares were down 3.8% in midday trading after the artificial intelligence giant reported its second-quarter earnings yesterday.
In the quarter ended July 28, the company's adjusted earnings were 68 cents, up 152% from a year ago, beating the consensus estimate of 64 cents. Revenue of $30 billion represented a year-over-year increase of 122%, beating the $28.7 billion expected.
Related: 7 takeaways from Nvidia's big earnings report
“Demand for hoppers remains strong and the anticipation for Blackwell is incredible,” said CEO Jensen Huang. “Blackwell samples are shipping to our partners and customers.” Earlier this month, The Information reported on a potential delivery delay from Blackwell due to design flaws.
Nvidia expects current-quarter revenue to be $32.5 billion, beating analysts' estimates of $31.7 billion. However, Bernstein analyst Stacy Rasgon said the buy-side was expecting a higher range of $33 billion to $34 billion, according to CNBC.
Morgan Stanley said that while the negative stock reaction to a strong quarter could fuel cautious sentiment, Blackwell's upcoming launch is expected to be a positive driver over the next year, according to thefly.com.
Dollar General shares fell after weak results
Dollar General fell 30% in midday trading after the company's earnings and revenue missed analysts' estimates.
The company earned $1.70 a share, down 20% and missing the $1.79 expected. Revenue for the quarter was $10.21 billion, compared with analysts' forecasts of $10.37 billion. Operating profit fell 20% to $550 million.
Related: Analyst 'increasingly bearish' on Dollar General stock
Dollar General has lowered its fiscal year 24 earnings per share (EPS) guidance to a range of $5.50 to $6.20, down from a previous range of $6.80 to $7.55.
“We are not pleased with our financial results, including top-line results below our expectations for the quarter,” said CEO Todd Vasos. “While we believe weaker sales trends are due in part to a core customer feeling financially constrained, we know how important it is to control what we can control.”
On August 13, Loop Capital lowered Dollar General's price target from $140 to $130 and maintained a hold recommendation ahead of the earnings release. The analyst is “increasingly pessimistic” about Dollar General's near-term outlook, citing increasing macroeconomic pressure on the company's core low-income customers.
Best Buy rose after forecast update
Best Buy shares rose 15% after the retailer posted revenue and earnings that beat analysts' estimates and raised earnings guidance.
The company earned $1.34 per share, up 10% from the $1.16 forecast. Revenue of $9.29 billion also beat the $9.24 billion forecast but was down 3%. Comparable sales fell 2.3%, the company’s best performance on this metric since the fourth quarter of fiscal 2022, Chief Executive Corie Barry said during the earnings call.
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The retailer now expects full-year adjusted earnings per share of $6.10 to $6.35, up from a previous range of $5.75 to $6.20. However, the company has lowered the upper end of its full-year comparable sales and revenue guidance.
“We see a consumer who is looking for value and sales events, and who is also willing to spend on high-priced products when they need it or when there is an attractive new technology,” Barry said in a press release.
Related: Veteran fund manager sees world of trouble ahead for stocks
