Nvidia falls, jobless claims and more: Thursday's 5 things to know
Market panel: Investors will find it ‘hard to make money’ this year
Cleo Capital managing director Sarah Kunst and Belpointe chief strategist David Nelson on preparing for a ‘tough’ global economic environment.
Here are the key events taking place on Thursday that could impact trading.
NVIDIA: Shares fell 6% in extended trading after U.S. officials ordered the company to cease exporting two of its top computing chips for artificial intelligence work to China, hampering a business that accounted for $400 million in sales in the current quarter.
Nvidia said the ban, which affects its A100 and H100 chips designed to speed up machine learning tasks, could interfere with the completion of developing the H100, the company's flagship chip announced earlier this year.
The announcement signals a major escalation of the technology tensions between the United States and China.
US REGULATORS TO VET ALIBABA, OTHER CHINESE FIRMS' AUDITS
Photo of Nvidia Corp’s headquarters. (REUTERS/Robert Galbraith / Reuters) NUTANIX: Shares jumped 18% in extended trading after the cloud software provider topped Wall Street revenue estimates. Fiscal fourth quarter revenue fell 1% to $385.5 million. Analysts expected $354.9 million. Annual recurring revenue grew 37% to $1.20 billion. "Our Fiscal 2022 results reflect strong progress on our subscription model with 27% year-over-year ACV billings growth and achievement of positive free cash flow, which we expect to be sustainable on an annual basis," said CFO Rukmini Sivaraman. The net loss narrowed for the three months ended July 31 to $151 million from $385.2 million. For fiscal 2023 the company sees revenue of $1.77 – $1.78 billion. US COMPANIES ADDED JUST 132,000 JOBS IN AUGUST AS HIRING SLOWS: ADP JOBLESS CLAIMS: The Labor Department will release its tally of new claims for unemployment benefits for last week, likely to provide further evidence of a tight labor market that’s cooling. Expectations are for 248,000, after falling unexpectedly to 243,000 the previous week. Someone completing an unemployment benefits form. (iStock / iStock) Continuing claims, which track the total number of workers collecting unemployment benefits, are expected to nudge higher, after a surprise decline the prior week, to 1.438 million, which would be the highest in more than four months. PRODUCTIVITY: We’ll get revised second quarter productivity and labor costs. Economists surveyed by Refinitiv anticipate that worker productivity fell for the second straight quarter to a seasonally adjusted annual rate of -4.5%, a slight improvement from the preliminary estimate of -4.6%. That compares with a plunge of 7.4% in the first quarter. Unit labor costs are seen jumping 10.7% in the second quarter, slightly below the preliminary estimate of 10.8%. That would be down from 12.7% in the first quarter. Workers at a shoe-making factory. (iStock / iStock) MORE DATA DUE: The ISM’s manufacturing purchasing managers index is due out for August. It’s expected to slip for the third month in a row to 52.0, the lowest since May 2020. It would also mark the fifth month in the last six of declining manufacturing activity. Inflation watchers will pay close attention to the prices paid component. It’s expected to fall for a fifth month to 55.5, the lowest since July 2020 and reinforcing other evidence that inflation has peaked. CLICK HERE TO READ MORE ON FOX BUSINESS At the same time, watch for construction spending to fall 0.4% month-over-month in July, following a steeper than expected decline of 1.1% the prior month. Source: Read Full Article
