Media Room
The week in the markets –
August 30, 2024
Share this
The lesson from Nvidia’s earnings
- Nvidia beats earnings per share and revenue expectations, but, alas, it wasn’t enough.
- The daily oil rollercoaster continues.
- The U.S. consumer remains a mystery.
There was a lot to unpack in Nvidia’s earnings report, but here’s a quick recap: the company made US$30 billion, marking a 122% increase over last year, and projected around US$32.5 billion in profits for the next quarter, which would be a 79% year-over-year increase. As time goes on, the numbers may continue to be staggering, but the year-over-year comparisons will become increasingly challenging. At the time of writing, the stock was down around 6% while the overall market remained flat. And the lesson here is: Nvidia can drop without dragging the entire market down with it. That is what everyone feared, and it didn’t happen, so that’s good.
One week after oil hit its lowest point in 2024, prices have slightly recovered, after Libya suspended oil exports. The country produces around 1.2 million barrels a day and is currently in turmoil. Two factions battle for control of the country; one based in Benghazi and the other in Tripoli. Fortunately, demand for oil remains somewhat weak, as confirmed in the latest inventory drawdown reports from the U.S. The price of oil typically has an impact on various geopolitical conflicts around the Middle East, but lower drawdowns has kept this in check.
Lastly, in the ever more difficult task of deciphering the U.S. consumer, Dollar General (the U.S. equivalent of Canada’s Dollarama) plunged 30% on Thursday after posting poor results, citing a weaker consumer base cutting back on discretionary spending. Meanwhile, in completely contradictory news, U.S. gross domestic product was revised up to 3% on Thursday, as personal consumption data came in much higher than expected at 2.9%, instead of the projected 2.2%. Clearly, some consumers are thriving while others… not so much.
Listen to this week’s podcast for further insights.
This week's market closing value - week ending August 30, 2024
(As of 4:00 PM ET.*)
| EQUITY INDICES | Level | Change | WTD | YTD | 1-year | 5-year |
| CAD | CAD | CAD | CAD | |||
| S&P/TSX | 23,253.46 | -27.96 | -0.12% | 10.95% | 14.59% | 7.18% |
| S&P 500 | 5,625.94 | 1.28 | -0.23% | 19.89% | 24.53% | 14.25% |
| DJIA | 41,562.95 | 370.69 | 0.65% | 12.14% | 19.44% | 9.77% |
| FTSE 100 | 8,376.63 | 48.85 | -0.24% | 13.51% | 16.44% | 4.91% |
| CAC 40 | 7,630.95 | 53.91 | -0.76% | 3.03% | 6.09% | 7.25% |
| DAX | 18,906.92 | 273.82 | -0.01% | 14.95% | 20.61% | 10.04% |
| Nikkei | 38,647.75 | 283.48 | -0.81% | 13.33% | 17.71% | 6.57% |
| Hang Seng | 17,989.07 | 376.97 | 1.86% | 7.46% | -1.80% | -6.57% |
| CURRENCY RETURNS |
CAD | Change | WTD | YTD | 1-year | 5-year |
| US$ | 1.3478 | -0.0034 | -0.25% | 1.69% | -0.22% | 0.25% |
| Euro | 1.4900 | -0.0220 | -1.46% | 1.84% | 1.72% | 0.38% |
| Yen | 0.0092 | -0.0001 | -1.54% | -1.87% | -0.65% | -5.94% |
| CANADIAN TREASURIES | Yield | Change | COMMODITIES | USD | Change |
|---|---|---|---|---|---|
| 3-month | 4.17 | -0.05 | Oil | $73.49 | -$1.40 |
| 5-year | 3.04 | 0.10 | Gold | $2,503.04 | -$8.21 |
| 10-year | 3.16 | 0.13 | Natural Gas | $2.13 | $0.10 |
| CANADIAN PRIME RATE |
|---|
| 6.70% |
*The data contained in the charts above is provided by Bloomberg as of 4:00 PM ET. Please note that the final closing market values may vary due to data delays and market settlement.
This commentary is published by IG Wealth Management and is provided as a general source of information. It is not intended as a solicitation to buy or sell specific investments, or to provide tax, legal or investment advice or as an endorsement of any investment. Some of the securities mentioned may be owned by IG Wealth Management or its mutual funds, or by portfolios managed by our external advisors. Every effort has been made to ensure that the material contained in the commentary is accurate at the time of publication, however, IG Wealth Management cannot guarantee the accuracy or the completeness of such material and accepts no responsibility for any loss arising from any use of or reliance on the information contained herein. Investment products and services are offered through Investors Group Financial Services Inc. (in Québec, a Financial Services firm) and Investors Group Securities Inc. (in Québec, a firm in Financial Planning). Investors Group Securities Inc. is a member of the Canadian Investor Protection Fund. Commissions, fees and expenses may be associated with mutual fund investments. Read the prospectus before investing. Mutual funds are not guaranteed, values change frequently and past performance may not be repeated.
This document may include forward-looking statements based on certain assumptions and reflect current expectations. Forward-looking statements are not guarantees of future performance and risks and uncertainties often cause actual results to differ materially from forward-looking information or expectations. Some of these risks are changes to or volatility in the economy, politics, securities markets, interest rates, currency exchange rates, business competition, capital markets, technology, laws, or when catastrophic events occur. Do not place undue reliance on forward-looking information. In addition, any statement about companies is not an endorsement or recommendation to buy or sell any security.
Trademarks, including IG Wealth Management, are owned by IGM Financial Inc. and licensed to its subsidiary corporations.
© Copyright 2024 Investors Group Inc. Reproduction or distribution of this commentary in any manner without the express written consent of IG Wealth Management is strictly prohibited. Please read Conditions of Use for more information concerning authorized uses of this document.
