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Markets Flat Ahead of Jobs Data; AMBA, CRWD, PVH All Beat

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To lead with the fact that the S&P 500 and the Nasdaq experienced their first down close in the past three sessions — and seven of the past nine — is to give the impression stocks sold off today. That’s not really the case: at -0.14% on the S&P and -0.04% on the Nasdaq, these indexes were flat as a pancake. Same with the Dow, -0.12% on the day. It’s down two straight sessions, for a grand total of -0.28%. This is a flat market.

It also submerges the good news that is well worth pointing out: the S&P 500 has just concluded its seventh-straight month in the green. This means that investors pushed through inflation concerns, supply constraints and the Delta variant during this somewhat challenging Great Reopening. The Nasdaq and the Dow have also managed gains through the month of August.

We saw a dip in August Chicago PMI numbers earlier today: 66.8 on the headline was lower than the 69.4 analysts had been expecting and the unrevised 73.4 posted for July. We also got new Consumer Confidence figures for August, and these were also down from expectations and month over month. The headline 113.8 is off the 123.1 consensus, as well as the downwardly revised 125.1 recorded for July.

Image processing semiconductor company Ambarella (AMBA - Free Report) shares shot up as much as 8% following its Q2 earnings release after Tuesday’s close. Earnings of 35 cents per share beat the Zacks consensus by a solid dime, on $79.3 million in quarterly sales which outpaced the $75.8 million expected. Next-quarter revenue guidance was raised to a range of $88-92 million from the $79.3 analysts had been looking for. Expect these estimates to revise upwards.

Cybersecurity firm CrowdStrike (CRWD - Free Report) also outperformed on both top and bottom lines after the closing bell today: 11 cents per share surpassed expectations of 9 cents, on $337.3 million in sales, outpacing the $323.9 million expected. Guidance for next quarter disappointed a little, which may account for the -3% sell-off in late trading, but full-year earnings and revenues have been bumped up higher than the Zacks consensus.

Finally, Tommy Hilfiger and Calvin Klein parent PVH (PVH - Free Report) outperformed earnings expectations by a wide margin: $2.72 per share versus $1.19 expected, on quarterly sales of $2.31 billion, which took out the anticipated $2.14 billion. Next-quarter earnings guidance has been raised to a range of $1.95-2.00 from the $1.58 per share consensus, with revenues promising 11-13% growth, also higher than earlier estimates. Shares are +7% in the late session.

Tomorrow morning, we see new jobs data on the private-sector from from ADP (ADP - Free Report) , which is expected to bring in 600K new positions filled for August — well above the rather disappointing 330K initially filed for July. However, we may see an upward revision based on the nonfarm payroll tally last month, which was nearly three times bigger than the ADP report. Also PMI and ISM Manufacturing prints hit the tape.

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