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Why Is NVDA Falling? (And Is It A Problem for the Market?)

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What’s in Today’s Report:

  • Why Is NVDA Falling? (And Is It A Problem for the Market?)
  • EIA Update and Oil Market Analysis

Futures are slightly lower following several underwhelming earnings reports and ahead of important economic data.

Micron (MU) and Levi-Strauss (LEVI) missed earnings and are declining solidly pre-market and those disappointing results are weighing on futures.

Economically, it was a quiet night and none of the reports are moving markets.

Today focus will be on economic data and the key reports, in order of importance, are as follows: Jobless Claims (E: 236K), Durable Goods Orders (E: 0.0%), Final Q1 GDP (E: 1.4%) and Pending Home Sales (E: 1.9%).  Given some cautious commentary on the economy from corporate management (including this morning), markets will want to see solid data that meets or slightly exceeds expectations and if that’s the case, the broad markets should be able to rally (even despite some tech headwinds from MU).

Additionally, today is the first (and potentially only) Presidential Debate (9:00 p.m. ET) and the closer look at the two candidates’ policies could move markets on Friday.

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The Jobs Report Was Goldilocks

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The jobs report was Goldilocks: Tom Essaye Quoted in Barron’s

Nvidia Sinks, Leading Tech Pullback

Sevens Report Research’s Tom Essaye told Barron’s that although Federal Reserve Chair Jerome Powell’s congressional testimony this week and Friday’s jobs report kept market expectations intact for both a June interest rate cut and generally stable growth, neither event added anything incrementally positive.

“The jobs report was Goldilocks, but it also added to some hints that there may be some weakness forming in the labor market, and that combined with digestion is likely why markets are slightly lower…,” Essaye said.

Also, click here to view the full Barron’s article published on March 8th, 2024. However, to see the Sevens Report’s full comments on the current market environment sign up here.

It’ll be Very Hard for This Market to Rally

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To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Tom Essaye Quoted In Barron’s on February 21, 2024

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Hedging Up Ahead Of The Results: Tom Essaye Quoted in Barron’s

Stocks Open Lower Ahead of Fed Minutes, Nvidia Earnings

“There are no notable economic reports today, but the January Fed meeting minutes will be released at 2:00 p.m. ET and that could move Treasury yields and ultimately impact stocks,” writes Sevens Report Research’s Tom Essaye.

Nvidia, which was the poster child for 2023’s artificial intelligence stock rally, was on track to dip again ahead of the chip maker’s earnings report that’s due after the market closes.

Also, click here to view the full Barron’s article published on February 21st, 2024. However, to see the Sevens Report’s full comments on the current market environment sign up here.

It’ll be Very Hard for This Market to Rally

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Nvidia Has Been The ‘Poster Child’ Of AI Enthusiasm

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Nvidia Has Been The ‘Poster Child’ Of AI Enthusiasm: Tom Essaye Quoted in Bloomberg Featured on Yahoo Finance

Tech Up in Late Hours on Nvidia’s Bullish Outlook: Markets Wrap

“Nvidia has been the ‘poster child’ of AI enthusiasm because NVDA makes the type of semiconductor chips that power generative AI and demand for those chips has gone through the roof,” said Tom Essaye, founder of The Sevens Report. “The AI-driven rally in the ‘Mag Seven’ is largely justified by the fact that they’re making a lot more money than they were previously.”

While Nvidia is the proverbial “picks and shovels” of the “AI gold rush”, other big-tech companies such as Microsoft Corp., Meta Platforms Inc., Alphabet Inc., Amazon.com Inc. and Apple Inc. have also seen large stock rallies as investors expect these companies to harness the power of generative AI to boost profits, Essaye noted.

“Has the AI mania gone too far and are we looking at a bubble situation?” Essaye said. “Based on what most of us think about typical bubbles, the answer is ‘no’ they are not in a bubble.”

Also, click here to view the full Bloomberg article featured on Yahoo Finance published on February 21st, 2024. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Hedging Up Ahead Of The Results

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Hedging Up Ahead Of The Results: Tom Essaye Quoted in Barron’s

Nvidia Weighs on Tech Stocks Ahead of Earnings

“I think what you’re seeing is just some hedging up ahead of the results,” Sevens Report Research’s Tom Essaye told Barron’s in a phone interview. “I think that’s part of it. The other part of it is you’re still seeing some follow through from Friday selling, too, as people are getting, not nervous about a rebound in inflation, but a little less sure that inflation is just going to keep going straight down in a line.”

Also, click here to view the full Barron’s article published on February 20th, 2024. However, to see the Sevens Report’s full comments on the current market environment sign up here.

It’ll be Very Hard for This Market to Rally

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

One Potential Catalyst That Could Shake Up Markets

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One Potential Catalyst That Could Shake Up Markets: Tom Essaye Quoted in Barron’s

Stocks Begin Holiday-Shortened Trading Week With a Pause

“One potential catalyst that could shake up markets today is the 20-Year Treasury Bond auction at 1:00 p.m. ET as weak results could trigger a rebound in yields, especially given fading attendance this week and subsequently less liquid market conditions across asset classes,” writes Sevens Report Research’s Tom Essaye.

In the absence of major data that could shift the narrative, investors will be watching key earnings reports like Nvidia on Tuesday. Bond yields will also be in focus.

Also, click here to view the full Barron’s article published on November 20th, 2023. However, to see the Sevens Report’s full comments on the current market environment sign up here.

One Potential Catalyst

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Tom Essaye Quoted in Yahoo Finance on August 22nd, 2023

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Stocks Fail to Catch a Bid Before Nvidia’s Results: Markets Wrap

The surge in US yields has been the primary reason stocks have declined over the past several weeks, with investors “pushing out” the date of expected rate cuts as they begin to accept the Fed may keep rates “higher for longer,” according to Tom Essaye, founder of “The Sevens Report” newsletter. “It’s not the height of rates that matters as much as how long they stay high,” Essaye noted. “If we see Powell hint at higher for longer on Friday, we will need to brace for more equity market volatility.”

Click here to read the full article.

Sevens Report Analysts Quoted in Investing.com on August 21st, 2023

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Dow Jones, Nasdaq, S&P 500 weekly preview: All eyes on Nvidia and Powell

Sevens Report analysts: “The market of 2023 is being defined almost by hyperbolic extremes. We started 2023 with investors fearing a catastrophic recession, 1970s- style inflation and 1970s-style rate hikes. That hasn’t happened. But just because that didn’t happen, it doesn’t mean that: No economic slowdown will occur, inflation will magically crash to late 20-teens levels, and the Fed will suddenly turn dovish (as markets priced in at 4,600). The truth is in the middle, and that’s where we are now.”

Click here to read the full article.