MARKET WRAP

Stocks were lower today as investors waited on megacap earnings.

The S&P 500 was down half of a percent, while the tech-heavy Nasdaq was down more than 1%.

The technology sector fell 2.5%, making it the worst-performing sector as semi-stocks took it on the chin today. CNBC notes that a handful of once-high fliers, including Nvidia, Arm Holdings, Qualcomm, and Super Micro, have fallen into a bear market.

CrowdStrike was the worst-performing stock on the day, down 10% after CNBC reported that Delta Airlines hired an attorney to seek damages after an outage this month led to thousands of flight cancellations. The stock is on pace for its worst month ever, down 40%.

Microsoft, AMD, and Starbucks reported earnings after the close.

Microsoft beat on the top and bottom lines but missed expectations for its Azure cloud growth.

AMD saw a beat across the board with stronger-than-expected revenue guidance. The stock was higher in the after-hours; CNBC attributes that to record data center revenue.

Starbucks reported mixed results. Its quarterly earnings met expectations, but revenue came up short. Traffic to U.S. stores fell 6%, international sales fell 7%, and China same-store sales fell 14%.

MRKT MATRIX: July 30, 2024

Today’s Top Stories:

• S&P 500 and Nasdaq fall as tech shares struggle ahead of megacap earnings (CNBC)

• JetBlue shares surge after surprise profit, $3 billion aircraft spending deferral (CNBC)

• Procter & Gamble earnings beat estimates, but quarterly sales disappoint as China demand slides (CNBC)

• Merck shares fall 9% despite earnings beat, strong demand for top drugs like Keytruda (CNBC)

• Great Stock Rotation Hinges on Powell Signaling Rate Cuts Soon (Bloomberg)

• Solomon Sees Up to Two Fed Cuts in 2024, Reversing Hold Stance (CNBC)

Today’s MRKT Call is Presented by FactSet

Crowded Trades Unravel

Dan Nathan, Guy Adami and John Butters break down the top market headlines and bring you stock market trade ideas for Tuesday, July 30th.

Axios - Employers' big hiring pullback: https://www.axios.com/2024/07/30/job-market-hiring-slows

Click here to access all of the charts mentioned in today’s MRKT Call.

Timecodes

• 0:00 - Semi Problems

• 15:45 - LLY & MRK

• 20:00 - Consumer Concerns

• 27:30 - Yields & Banks

• 32:00 - Earnings Insight

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Today’s Okay, Computer. is Presented by RBC and Current

Divergences Abound in the Nasdaq

Dan Nathan and Guy Adami discuss the current state of the public and private markets, focusing on impressive gains in AI-related stocks like Apple, Nvidia, and Microsoft. They delve into the significant market caps of these companies, the potential dangers of their rapid growth, and the likelihood of margin compression due to increased competition. They also touch on specific instances of insider trading and sell-offs in companies like Dell, along with the economic implications of unemployment rates on enterprise spending. Additionally, they analyze the future of FinTech and generative AI, expressing skepticism about the ongoing enthusiasm and pointing out the risks of a potential slowdown.

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