Why the stock market is going berserk today

Category: Finance

The US stock market experienced a significant decline, with all major indexes dropping over 1.5% due to disappointing economic data and earnings from major tech companies like Amazon and Intel. Jobless claims reached a near one-year high, and the economy added significantly fewer jobs than expected, raising concerns about a potential recession. Investors are now questioning the Federal Reserve's approach to rate cuts, with a growing consensus that a larger cut may be necessary in September.

Keywords: Stock Market, Economic Data, Federal Reserve

Source: Yahoo Finance

Update At: 8/3/2024

Related Sources

Should Investors Buy Intel Stock Before Aug. 1?

Parkev Tatevosian, CFA, has no positions in the mentioned stocks. The Motley Fool recommends Intel and specific options related to it. Tatevosian is an affiliate of The Motley Fool and may earn compensation for promoting their services.

The Motley Fool

Warren Buffett's Berkshire Hathaway Reports Earnings Saturday—What You Need To Know

Berkshire Hathaway is set to report its Q2 financial results, with a focus on operating income rather than net income or EPS. Investors will be keen to see how the company has utilized its $189 billion cash reserve, its share buyback activities, and updates on its insurance segment. Notable changes in its portfolio include a reduction in Apple shares and a significant stake in Bank of America. Analysts expect muted growth at GEICO but an acceleration in Berkshire's reinsurance units.

Investopedia

Berkshire Hathaway Inc. Information Regarding Second Quarter Earnings Release | BRK Stock News

Berkshire Hathaway Inc. will release its second quarter earnings report and Form 10-Q on August 3, 2024, at approximately 7:00 a.m. Central time, accessible on their official website.

Stock Titan

Warren Buffett’s Berkshire Hathaway: What to Expect from Tomorrow’s Earnings

Berkshire Hathaway shares have risen 5.8% in the past month and 23% since the start of 2024, despite Warren Buffett reducing its stakes in Apple and BYD. The firm expects its cash reserves to reach $200 billion by the end of Q2 2024, driven by strong insurance underwriting earnings. Buffett emphasizes that net earnings should not be a primary concern for shareholders, as they do not accurately reflect the company's performance.

CMC Markets

Berkshire (BRK.B) Pre-Q2 Earnings Analysis: To Buy or Hold?

Berkshire Hathaway Inc. (BRK.B) is projected to show growth in revenues and earnings for Q2 2024, with revenues estimated at $97.3 billion and earnings at $4.83 per share. Despite a positive outlook for its insurance business, high catastrophe losses may impact profitability. The company has a Zacks Rank of #3 and an Earnings ESP of -5.70%, indicating uncertainty in beating earnings estimates. Share buybacks and strong performance in various sectors may support the bottom line, but investors are advised to consider valuation before entering new positions.

Yahoo Finance Canada

Apple Q3 earnings beat estimates, China revenue falls short

Apple (AAPL) exceeded third quarter earnings expectations with $1.40 per share and $85.78 billion in revenue. However, Greater China revenue fell short of estimates at $14.73 billion. All individual units, including Services, outperformed expectations.

Yahoo Finance

Intel stock plunges as company announces cost-cutting plan to slash jobs, suspend dividend

Intel reported Q2 earnings, missing expectations with EPS of $0.02 and revenue of $12.8 billion. The company announced a $10 billion cost reduction plan, including a 15% workforce cut and suspended dividends. Intel's Q3 revenue forecast is between $12.5 billion and $13.5 billion, below analyst expectations. The company is facing challenges from competitors like AMD and Qualcomm while trying to regain market share and expand its AI chip business.

Yahoo Finance

Intel crashes as Q2 results, guidance miss expectations; lays off 15% of staff (INTC)

Intel shares fell 10.5% after announcing weaker-than-expected guidance and plans to cut 15% of its workforce while suspending its dividend. The company expects third-quarter revenue between $12.5B and $13.5B, below analyst expectations. Second-quarter results showed a slight revenue decline, with significant impacts from gross margin headwinds and non-core business charges. Intel aims to streamline operations and improve liquidity through spending cuts and job reductions.

Seeking Alpha

3 E-Commerce Stocks (Not Named Amazon) Worth Owning for the Long Haul

Three e-commerce stocks to consider are Williams-Sonoma, MercadoLibre, and Shopify, each showing significant growth and potential in the online retail market. Williams-Sonoma has increased its e-commerce revenue share significantly, MercadoLibre combines e-commerce with fintech in Latin America, and Shopify is expected to rebound despite recent struggles.

InvestorPlace

Roku Stock Has a Lot to Prove This Week

Roku is set to announce its second-quarter results, with analysts predicting a 21% revenue increase to $937.6 million. Despite a strong performance in 2023, the stock has faced volatility, dropping 36% in 2024. Investors are concerned about ongoing losses, with a projected $65 million deficit. Roku's user base has grown to 81.6 million households, but average revenue per user remains flat. Competitive pressures, particularly from Walmart's acquisition of Vizio, add to the uncertainty surrounding Roku's future performance.

The Motley Fool