Labor Day Weekend Market Overview
The Labor Day weekend has arrived, and the stock market was busy this week. Investors reacted to NVIDIA's (NVDA, Financial) earnings report, the July Personal Income and Spending Report, results from leading retailers, and other high-profile technology companies. The week ended with mixed results for the indices, with the Dow Jones Industrial Average reaching a new record high.
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Today's News
Intel (INTC, Financial) is considering significant strategic changes, including splitting its foundry business and potentially halting factory projects. This comes as the company struggles with mounting losses and missed earnings expectations. Intel's decision process is being advised by Morgan Stanley (MS) and Goldman Sachs (GS), with options to be presented at a board meeting in September.
Following the announcement of these potential strategic moves, Lip-Bu Tan resigned from Intel's (INTC, Financial) board of directors. Analyst Ming-Chi Kuo suggested that Tan's departure is related to his involvement in a possible spin-off plan. Intel's shares spiked 9% in mid-morning trading on Friday as a result of this news.
Dollar General (DG, Financial) experienced a historic 32.2% drop in its stock price on Thursday, pushing shares below the $100 mark for the first time since 2018. Morgan Stanley downgraded Dollar General to an Equal-weight rating, citing concerns over market share gains and potential margin risks if the company becomes too promotional.
Nvidia (NVDA, Financial) and Broadcom (AVGO, Financial) are under investor scrutiny as they await earnings reports. Nvidia's CEO Jensen Huang emphasized the continuing AI spending boom, which has driven the company's valuation close to $3 trillion. Analysts believe this is a bullish indicator for the broader tech sector.
Alnylam Pharmaceuticals (ALNY, Financial) fell 14% after releasing results from a late-stage trial for its heart disease drug vutrisiran. The drug, which competes with Pfizer’s (PFE, Financial) tafamidis, failed to meet investor expectations. Meanwhile, BridgeBio (BBIO, Financial) saw a 16% rise as its competing therapy acoramidis is under FDA review.
Alibaba (BABA, Financial) climbed nearly 5% in pre-market trading after China's antitrust regulator ended a three-year investigation into the company. The State Administration for Market Regulation praised Alibaba for its compliance and rectification efforts, which included stopping monopolistic practices.
Apple (AAPL, Financial) is reportedly considering investing in OpenAI's latest funding round, which could raise concerns about its existing search deal with Google (GOOG). Bank of America analysts suggest that a large investment by Apple into OpenAI could indicate a potential long-term shift in AI partnerships.
In dividend news, Consolidated Water (CWCO, Financial) and Ingredion (INGR, Financial) announced increased payouts. Additionally, companies like Waste Management (WM) and Deere (DE) declared upcoming dividends. Investors are also looking forward to ex-dividend dates for McDonald’s (MCD) and Lockheed Martin (LMT).
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