Key Takeaways
Major U.S. stock indexes were mixed as a new trading week packed with corporate and economic data releases began.
Artificial intelligence (AI) semiconductor giant Nvidia (NVDA) is scheduled to release its latest earnings report on Wednesday afternoon, giving investors a look at key inflation and economic growth numbers later in the week.
The S&P 500 fell 0.3% on Monday, while the Nasdaq lost 0.9%. The Dow hit an all-time high in the morning but lost momentum later in the session, closing up 0.2%.
The technology sector was the worst performer, with semiconductor stocks suffering steep declines ahead of Nvidia’s earnings report. Storage and server provider Supermicro Computer (SMCI) had the biggest drop among S&P 500 index members, falling 8.3%. In its most recent quarterly results, released in early August, Supermicro’s profit fell short of expectations as lower margins weighed on earnings. The company also announced a 10-for-1 stock split.
Chipmaker Broadcom (AVGO) said it was teaming up with Hitachi Vantara, a data storage subsidiary of Japanese conglomerate Hitachi, to collaborate on hybrid cloud solutions to help companies scale AI-related processes. But Broadcom shares couldn’t escape downward pressure from the semiconductor industry, dropping 4.1% on Monday.
Meanwhile, shares of memory chip designer Micron Technology (MU) fell 3.8% after Needham cut his price target on the stock to $140 from $150. Analysts noted that shipments of Micron’s DRAM and NAND memory products are flat.
Shares of Dayforce (DAY), a human capital management software provider, hit a record high on the S&P 500 index on Monday, rising 4.0%. Dayforce announced last week the launch of a new employee training tool with AI capabilities designed to optimize the learning process. In its latest quarterly report, the company reported better-than-expected revenue and profits, driven by strong demand for its payroll and human capital management (HCM) services.
Shares of financial technology company Jack Henry & Associates (JKHY) rose 2.6% after the company declared a regular quarterly dividend of 55 cents per share. Based on Monday’s closing price, the dividend equates to a dividend yield of 1.3%.
Shares of oil and gas exploration company EOG Resources (EOG) rose 2.5% on Monday. Analysts at Zacks Equities Research recently highlighted EOG as a strong value stock, pointing to the company’s strong earnings metrics and suggesting that untapped prime lands could boost EOG’s production outlook.
