Dow falls more than 200 points, Nasdaq slides despite Nvidia earnings beat: Live updates

Despite another show-stopping print after the bell Wednesday, and positive feedback from clients, Nvidia‘s garnered limited interest from the institutional investing community, according to Goldman’s trading desk.

“From our point of view, the lack of institutional adding / chasing this time around is likely reflective of significantly fuller positioning across investor types,” the firm said, noting that it saw more 10 buyers at its desk on a T+1 basis around this time last quarter.

The trading team also views this shift as a potential sign of risk-reward considerations, although it could also potentially signal that the AI theme is entering a “tougher stretch.”

— Samantha Subin

Nike shares could continue or snap a record-setting streak depending on where they close Thursday’s session.

The athletic retailer closed its 10th straight session down on Wednesday. That’s the longest losing streak in Nike’s history.

Shares have traded both above and below the flatline in Thursday’s session. The stock was down about 0.6%.

— Alex Harring

Piper Sandler said Amazon could be nearing a “margin renaissance.”

“We see evidence of this emerging in Gross Margins & 3Q23 incremental Op Income guide was by far the strongest in company history,” analyst Thomas Champion said, noting the company may be “on the cusp of a margin renaissance.”

“We think now is the time to buy AMZN with margins inflecting & AWS growth troughing,” Champion added, using the acronym for the company’s cloud business called Amazon Web Services.

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— Alex Harring

Big declines in shares of Burlington Stores and Petco on Thursday after the retailers’ earnings reports, and it’s easy to see why. There’s an expectation that consumers are pulling back their spending.

Burlington shares are down more than 9% even though it posted a strong 4% rise in same-store sales, which was at the high-end of its forecast. The trouble is Burlington also tempered its outlook.

CEO Michael O’Sullivan remarked, “it is clear that the lower-income shopper, our core customer, is still under significant economic pressure. Based on the underlying year-to-date comp trend, we are narrowing our full-year comparable-store sales guidance to a range of 3% to 4% versus 2022.”

The reaction was even worse at Petco, where shares fell more than 21% and hit a 52-week low intraday.

The pet products retailer turned in same-store sales growth slightly above estimates as consumers bought food and treats and spent money at its vet clinics. However, there are pressures on more discretionary items, which weighed heavily on its guidance.

Petco cut its full-year forecast to a range of 24 cents to 30 cents per share, after adjustments. Revenue will be between $6.15 billion and $6.28 billion, it said. On average, analysts were expecting it to earn 42 cents per share on revenue of $6.28 billion, according to FactSet.

—Christina Cheddar Berk, Robert Hum

A strengthening U.S. Dollar, a strong interest rate differential and improving economic conditions would typically be positives for the U.S. economy. However, things may pan out differently under the current environment, according to Liz Young, head of investment strategy at SoFi.

“Make no mistake, solid economic data is a good sign. The trouble with this concept right now is that monetary policy has been taken to a restrictive level. … So far, it hasn’t had the full intended effect, and inflation remains a concern,” Young wrote in a Thursday note.

The strategist added that the rise in Treasury yields has put pressure on borrowing. A stronger U.S. dollar also puts pressure on companies that rely upon international revenue and also makes commodities more expensive for foreign currency holders.

“That’s happening at a time when we are hoping inflation will continue to fall in an orderly fashion back down to its target level,” said Young. “At first blush, the recent dollar strength and broadening interest rate differential for the U.S. may appear positive, but when added to the intended effect of monetary policy tightening, the typical effects of higher borrowing costs, and the possible headwind to U.S. multinational corporations, the move looks more risky.”

The Dollar Index is up 0.4% as of Thursday afternoon, reaching 103.755.

— Hakyung Kim

Check out some of the companies making headlines in midday trading.

Nvidia – The chipmaker’s stock climbed more than 1% to a record high after the company reported a beat on the top and bottom lines. The strong performance was driven by its data center business, which includes the A100 and H100 AI chips needed to build and run AI application. Nvidia also offered strong guidance amid a surge in demand for chips, suggesting sales in the current quarter will grow 170% from the year-earlier period.

AMD, Marvell Technology — Both semiconductor stocks were lower as Nvidia’s earnings momentum fizzled. Shares of AMD slipped nearly 5%, while Marvell pulled back 4%.

Boeing — Shares of the aerospace company shed nearly 3% after Boeing said deliveries of the 737 Max will be delayed after it discovered new manufacturing flaws. Fastener holes on the aft pressure bulkhead on some of the plans were improperly drilled, the company said. Spirit Aerosystems, which means the fuselages, dropped 16.5%.

Read the full list here.

— Brian Evans