Stock Market News: Fed’s Powell speaks, Nvidia, Apple, Nordstrom’s shares active
Federal Reserve Chairman Jerome Powell delivers highly anticipated speech from Jackson Hole, Wyoming, Nvidia’s run cools, Apple gets upgrade, Dollar Tree takes on thieves and stocks on pace to end the week mixed. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.
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Marvell Technology
Chipmaker Marvell Technology posted a drop in second-quarter revenue as economic uncertainty weighed on demand for its chips and networking hardware.
Shares of the California-based company fell over 6% on Friday.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| MRVL | $53.75 | -3.54 | -6.18 |
Marvell's recovery in China has been weak as American legislation restricted the exports of certain chips to the Asian country in October last year.
The company, which makes equipment such as switches and adaptors, projected revenue of $1.40 billion, plus or minus 5%, for the third quarter, the lower end of which is below analyst expectations of $1.39 billion.
Marvell forecast per share earnings of 40 cents, plus or minus 5 cents for the third quarter, which was in line with expectations, according to Refinitiv data.
Reuters contributed to this post.
First the government wanted to regulate your gas stove, now the feds are coming after your ceiling fan.
Nvidia
Shares of Nvidia are finally falling back to earth after skyrocketing over 200% year-to-date and over 5.6% the last five days.
On Friday, the chipmaker’s stock is down roughly 3.2%, after the company surpassed Wall Street’s expectations in their Wednesday earnings report to shareholders.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| NVDA | $458.95 | -12.68 | -2.69 |
Nvidia’s second-quarter revenue came in at $13.5 billion, beating estimates of $11.2 billion. Its forecast for the third quarter projects a jump to about $16 billion, plus or minus 2%, which exceeded the expectations of analysts polled by Refinitiv, who on average projected $12.6 billion.
The company reported a 53% jump in its inventory commitments from the prior quarter as it looks to meet and secure long-term demand for its data center chips.
Nvidia also announced the approval of a $25 billion stock buyback – a boon to shareholders who have seen the company’s stock price surge this year, which drove its market value over the $1 trillion threshold in late May.
FOX Business reporter Eric Revell contributed to this post.
Nordstrom store location
Shares of Nordstrom are down on Friday after the company maintained a cautious outlook for 2023 due to consumer spending and retail theft.
"We continue to see a cautious consumer," said Nordstrom finance chief Catherine Smith, adding sales slowed at both its eponymous stores and off-price Nordstrom Rack banner during the third quarter.
Total revenue fell about 8% to $3.77 billion in the second quarter ended July 29, compared to expectations of $3.65 billion, according to Refinitiv data.
Nordstrom said inventories dropped to 17.5% in the quarter for a third straight time.
Nordstrom CEO Erik Nordstrom also said theft at its stores was still a drag on earnings, though not any more than the company has already planned for this year.
"That needs to come down," Nordstrom said, adding the company had taken steps such as partnering with local jurisdictions and law enforcement.
Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors, said Nordstrom's earnings indicate shoplifting and store card delinquencies are the new surprise warnings management and investors have to contend with.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| JWN | $15.41 | -1.41 | -8.35 |
Nordstrom earned 84 cents per share in the quarter. Analysts had estimated a profit of 44 cents.
Reuters contributed to this post.
In prepared remarks at Jackson Hole, Wyoming, Fed Chairman Powell signaled they will hold rates higher because the economy might not be slowing as fast as policymakers would like.
The S&P 500 maintained modest gains mid-morning.
The whacky weather of summer 2023 has not been kind to America's theme parks including Disney and Seaworld, according to one Wall Street firm.
Federal Reserve Chairman Jerome Powell will deliver a highly anticipated speech at Jackson Hole Wyoming which may confirm, either another series of rate hikes, or the end of the tightening cycle aimed at bringing down inflation hitting the economy.
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