S&P 500, Nasdaq fall as Nvidia, other chip companies fall

What to expect from Salesforce earnings this week

52 minutes ago

Nvidia isn’t the only tech company reporting a big earnings report this week, with Salesforce (CRM) also reporting on Wednesday after the closing bell.

Investors will be watching for improved operating margins and updates on AI initiatives.

Analysts expect revenue to grow to $9.24 billion from $8.6 billion a year ago, according to estimates compiled by Visible Alpha. Net income is expected to come in at $1.34 billion, or $1.36 a share, up from the year-ago period but down from the prior quarter.

Salesforce shares are up 0.5% in recent trading, and have been essentially flat since the start of 2024.

Read the full earnings preview here.

–Naomi Buchanan

Shares of PDD, the parent company of Temu, have fallen sharply.

3 hours and 5 minutes ago

U.S.-traded shares of Chinese e-commerce company PDD Holdings (PDD) fell on Monday after the parent company of discount marketplace Temu reported second-quarter sales that fell short of analysts’ expectations.

“Looking ahead, revenue growth will inevitably face pressure from intensifying competition and external challenges. Profitability is also likely to be affected as we continue to invest resolutely,” said John Liu, vice president of finance at BDD.

Rival Alibaba also reported quarterly earnings that missed analysts’ estimates earlier this month, as the online retailer struggles with a weak Chinese economy and amid reports that Amazon has begun promoting Chinese suppliers in a new section of its website that will sell low-cost clothing and home goods to U.S. consumers directly from China.

American Depositary Receipts (ADRs) fell 28% in recent trading, sending Nasdaq shares to their lowest level in nearly a year.

–Nisha Gopalan

Nvidia in the Spotlight Ahead of Wednesday’s Earnings Report

5 hours and 36 minutes ago

The event that investors are eagerly awaiting this week is Nvidia’s (NVDA) earnings report on Wednesday.

The stock, which was slightly higher ahead of the bell on Monday, has risen 43% from its early August low, helping lead a broader market rally in recent weeks.

Nvidia shares have been boosted in recent weeks by positive coverage from Wall Street and rising earnings expectations. The company, which has beaten expectations for both revenue and earnings in recent quarters, is under pressure to deliver another impressive quarterly report.

The stock price has recently settled inside a rectangle pattern, indicating that the chipmaker’s move towards the upside is continuing.

Nvidia shares may face support around $116 and $97, but resistance near $136 and $170.

Read our full technical analysis here.

–Timothy Smith

Stock futures point to a slightly higher open for the S&P 500 and Dow.

6 hours and 13 minutes ago

Futures linked to the Dow Jones Industrial Average rose 0.1%.

S&P 500 futures rose 0.1%.

Nasdaq 100 futures fell 0.1%.