Wall Street regains momentum after Thursday's sharp sell off but simmering North Korea tension remain a backdrop to Friday's trading session and safe havens such as gold and government bonds make gains.
From the top:
- Stock market recovers but ends week down
- July inflation figures weak
- Snap's share price crackles and pops
- Nvidia cloud burst as stocks decline
Investors are also wagering that the Federal Reserve will hold off a rise in rates given the soft inflation data for July released by Labor Department on Friday of a modest 0.1% increase. The three major indexes closed out the week in positive territory following yesterday's lows. The Dow closed +0.07%, the S&P 500 +0.13% and Nasdaq gained +0.64%.
- Dow 21,859 +0.07%
- S&P 500 2,441 +0.13%
- Nasdaq 6,256 +0.64%
- Russell 2000 1,375 +0.22%
- NYSE Composite 11,774 +0.02%
- Gold 1,296 +0.50%
- Oil WTI $48 +0.39%
- 10-Year Treasury Yield 2.19% -0.008%
The leading groups in Thursday's session were renewable energy (+1.95%), recreational products (+1.82%) and mobile telecommunications (+1.78%). The indexes fell lower for the week with the Dow Jones Industrial Average -1.06%, the Nasdaq Composite down -1.50% and the S&P 500 fell -1.43%.
In the tech sector, it was a day marked by clear winners and losers. Among the more popular stocks lifting indexes were Microsoft (+1.54%), Cisco (+1.42%), Apple (+1.39%) and Netflix (+1.36%).
Snap share plunge
In the losing corner were Nvidia which despite a glowing earnings report was down -5.34% and Snap with a plunge of -14.09% in its third worst day following its disapointing earnings results with significant misses on a few key figures.
This was Snap's second earnings report since its IPO launch and it failed to ignite investors. It reported a loss of 16 cents per share on revenue of $181.7m lower than analysts' estimates of 14 cents per share and revenue of $186.2m. The number of daily active users were 173 million which fell short of estimates for 174 million.
Nvidia's share price plummet hampered by vision of cloud
Nvidia on the other hand had a less clear cut reason for its fall in today's trading. The chip-making company beat on both earnings and sales by significant margins. It announced earnings of 92 cents per share on revenue of $2.23bn. This was a 56% increase over the same period last year. EPS was compared to analysts' expectations of 70 cents per share on revenue of S1.96bn.
The company's market cap is just under $100bn and growth has been phenomenal. Reuters analysis of Nvidia's share price dive points to its data-center business which wasn't as glowing as the rest of its results.
The data center which sells the graphic chips to large cloud service operators such as Amazon Web Services and Google's Azure, was the slowing of sequential growth over the last two years. Nvidia's data center business grew more than 50% to $416m but it still missed FactSet analysts' estimates of $423m.
Loop Capital analyst Betsy Van Hees as reported in Reuters said, "Nvidia was priced for perfection heading into earnings," and added the company did not have any room for anything but perfection.
Lost appetite for Blue Apron
Meanwhile, Blue Apron had its worst day after announcing its first earnings report since its June IPO its share price plunged almost 50% from its starting price to $5.12.
Greater selling pressure was placed on the stock of the meal-kit company after it announced that a great portion of their revenue was taken up by unexpected costs and delays for their new facility in New Jersey. The company reduced guidance to the second half of the year.