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Markets Skid into Close, NVIDIA and Cisco Beat Estimates
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Market indexes skidded into the close this Hump Day, already down prior to the release of the Fed minutes from the latest FOMC meeting, in which it woulds appear the tapering conversation is being put on hold another month. This has quickly dominoed to investors considering whether growth has suddenly become more stagnant and the best growth numbers are now already behind us.
The Dow fell -1.07% on the day, -379 points to finish back below 35K. The S&P 500 copied this -1.07% drop, closing at an even 4400. The Nasdaq, down for now its third straight day and more than 2% off its all-time highs, slipped -0.89% while the small-cap Russell 2000 “outperformed” the other indexes, only falling -0.84% on the day. For the Dow and S&P, this is the worst two-day performance in the past month.
The Fed minutes showed open discussions about the Delta variant impeding economic growth and helping keep full employment at bay. There is a definite split among members of the committee now, with the hawks growing more vocal about the need to taper asset purchases and the doves mostly keeping mum at this point. The Fed has sat on its hands longer than many had been expecting, and apparently it is not yet compelled to change course.
NVIDIA (NVDA - Free Report) reported Q2 earnings and revenues that unsurprisingly beat expectations: $1.04 per share topped the Zacks consensus by 3 cents (up around 85% from the year-ago figure) on $6.51 billion in sales, growing 68% year over year and outpacing the $6.43 billion estimate. Gaming grew 85% in the quarter to $3.06 billion, ahead of expectations, while Data Center followed suit, +35% to $2.37 billion.
Next quarter revenue guidance is ahead of current estimates: $6.8 billion (+/- 1-2%) is notably above the Zacks consensus $6.53 billion. The innovative chipmaker has only missed on earnings once in the past five years, though today’s beat was by a slightly slimmer margin than the trailing four-quarter averages. Shares are up modestly in late trading on the news. Shares are up 46.8% year to date, 57.1% in the past year and 1,137% over the past five years.
Cisco Systems (CSCO - Free Report) , which has an even more impressive earnings beat streak than NVIDIA, topped estimates on its bottom line by a penny to 84 cents per share in its fiscal Q4 release. Revenues of $13.1 billion surpassed the $13.0 billion expected. Product offerings for the full fiscal year of +31% is the company’s best in 10 years, and Cisco reported record operating cash flow. Shares have slipped 1.7% on the release, +25.5% year to date.
Robinhood (HOOD - Free Report) posted its inaugural quarterly report Wednesday afternoon, where it registered a loss of -$2.16 per share on $565 million in sales. Transaction-based income grew 141% year over year, which makes sense as the company grew in prominence earlier this year with the ”meme stock” frenzy. However, along with a $1 billion stock-based comp charge coming in Q3, the company expects lower trading activity by its next quarterly statement. Shares are -5% in late trading.
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Markets Skid into Close, NVIDIA and Cisco Beat Estimates
Market indexes skidded into the close this Hump Day, already down prior to the release of the Fed minutes from the latest FOMC meeting, in which it woulds appear the tapering conversation is being put on hold another month. This has quickly dominoed to investors considering whether growth has suddenly become more stagnant and the best growth numbers are now already behind us.
The Dow fell -1.07% on the day, -379 points to finish back below 35K. The S&P 500 copied this -1.07% drop, closing at an even 4400. The Nasdaq, down for now its third straight day and more than 2% off its all-time highs, slipped -0.89% while the small-cap Russell 2000 “outperformed” the other indexes, only falling -0.84% on the day. For the Dow and S&P, this is the worst two-day performance in the past month.
The Fed minutes showed open discussions about the Delta variant impeding economic growth and helping keep full employment at bay. There is a definite split among members of the committee now, with the hawks growing more vocal about the need to taper asset purchases and the doves mostly keeping mum at this point. The Fed has sat on its hands longer than many had been expecting, and apparently it is not yet compelled to change course.
NVIDIA (NVDA - Free Report) reported Q2 earnings and revenues that unsurprisingly beat expectations: $1.04 per share topped the Zacks consensus by 3 cents (up around 85% from the year-ago figure) on $6.51 billion in sales, growing 68% year over year and outpacing the $6.43 billion estimate. Gaming grew 85% in the quarter to $3.06 billion, ahead of expectations, while Data Center followed suit, +35% to $2.37 billion.
Next quarter revenue guidance is ahead of current estimates: $6.8 billion (+/- 1-2%) is notably above the Zacks consensus $6.53 billion. The innovative chipmaker has only missed on earnings once in the past five years, though today’s beat was by a slightly slimmer margin than the trailing four-quarter averages. Shares are up modestly in late trading on the news. Shares are up 46.8% year to date, 57.1% in the past year and 1,137% over the past five years.
Cisco Systems (CSCO - Free Report) , which has an even more impressive earnings beat streak than NVIDIA, topped estimates on its bottom line by a penny to 84 cents per share in its fiscal Q4 release. Revenues of $13.1 billion surpassed the $13.0 billion expected. Product offerings for the full fiscal year of +31% is the company’s best in 10 years, and Cisco reported record operating cash flow. Shares have slipped 1.7% on the release, +25.5% year to date.
Robinhood (HOOD - Free Report) posted its inaugural quarterly report Wednesday afternoon, where it registered a loss of -$2.16 per share on $565 million in sales. Transaction-based income grew 141% year over year, which makes sense as the company grew in prominence earlier this year with the ”meme stock” frenzy. However, along with a $1 billion stock-based comp charge coming in Q3, the company expects lower trading activity by its next quarterly statement. Shares are -5% in late trading.
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