Business and Finance News - 8.5.24

Japan's Nikkei 225 and Topix indexes fell over 8%, confirming a bear market as major trading houses like Mitsubishi and Mitsui dropped more than 10%. The yen strengthened to its highest level against the dollar since January, trading at 142.77. (CNBC)

*Nikkei 225 - The Nikkei 225 is a stock market index for the Tokyo Stock Exchange (TSE) in Japan. It is composed of 225 large, publicly traded companies representing various industries, and it is considered a primary indicator of the performance of Japan's stock market.

The Nasdaq Composite index fell 10% from its July high, entering correction territory amid concerns over tech earnings and a slowing U.S. economy. The index dropped 2.4% on Friday due to disappointing jobs data and earnings reports from Amazon and Intel, raising fears of potential Federal Reserve interest rate cuts. (Reuters)

*Correction Territory - Correction territory in stock market terms refers to a situation where a stock index or individual stock has declined by 10% or more from its recent peak.

Intel's stock dropped over 26%, its worst in 40 years, after a poor second-quarter earnings report and news of cutting 15% of its workforce and suspending dividends. The company forecasted Q3 revenue between $12.5 billion and $13.5 billion, missing analysts' expectations, amid a major restructuring effort. (Yahoo! Finance)

*Intel (INTC) - Intel Corporation is a leading global technology company specializing in designing, manufacturing, and selling semiconductor chips.

Mortgage rates dropped to their lowest levels this year, with the 30-year fixed rate at 6.4% and the 15-year fixed rate at 5.89%, following a disappointing jobs report. The U.S. added 114,000 jobs in July, below expectations, and the unemployment rate rose for the third consecutive month. (Fast Company)

*Mortgage Rates - Mortgage rates are the interest rates charged on a mortgage loan. These rates can be fixed, remaining the same throughout the loan term, or variable, fluctuating with market conditions. They are influenced by factors such as economic conditions, inflation, and the borrower's creditworthiness.

The U.S. economy added 114,000 jobs in July, with the unemployment rate rising to 4.3%, the highest since 2021. This increase in unemployment, along with slower hiring, raises concerns about a potential recession, prompting the Federal Reserve to consider interest rate cuts. (Axios)

*Unemployment Rate - The unemployment rate is a measure of the percentage of the labor force that is jobless and actively seeking employment.

A Few Companies Expected to Report Earnings This Week…

• Amgen (AMGN) and Uber (UBER) are expected to report on Tuesday.

• Novo Nordisk (NVO) and The Walt Disney Company (DIS) are expected to report on Wednesday.

• Eli Lilly (LLY) and Alibaba (BABA) are expected to report on Thursday.

*Alibaba (BABA) - Alibaba Group is a Chinese multinational conglomerate specializing in e-commerce, retail, internet, and technology. Alibaba operates various businesses, including online marketplaces like Taobao and Tmall, payment platforms such as Alipay, cloud computing services with Alibaba Cloud, and more.

*Amgen (AMGN) - Amgen is a leading biotechnology company focused on discovering, developing, manufacturing, and delivering innovative human therapeutics.

*Eli Lilly (LLY) - Eli Lilly and Company is a global pharmaceutical company that discovers, develops, manufactures, and markets products in the areas of oncology, endocrinology, neuroscience, and immunology. 

*Novo Nordisk (NVO) - Novo Nordisk is a global healthcare company headquartered in Denmark, specializing in the development, manufacturing, and marketing of pharmaceutical products and services. 

*Uber (UBER) - Uber is a technology company that provides ride-hailing services through its mobile app, allowing users to book rides with drivers who use their own vehicles.

*The Walt Disney Company (DIS) - The Walt Disney Company, commonly known as Disney, is a diversified multinational entertainment and media conglomerate that operates in media networks, parks and experiences, studio entertainment, and interactive media.

Here’s how the major indexes did on Friday:

• Dow Jones Industrial Average: 39,737.26 -610.71 (-1.51%)

• S&P 500: 5,346.56 -100.12 (-1.84%)

• Nasdaq Composite: 16,776.16 -417.98 (-2.43%)

• Russell 2000: 2,109.31 -76.85 (-3.52%)

• CBOE Volatility Index (VIX): 23.39 +4.80 (+25.82%)

Here’s how leading market ETFs did on Friday:

• SPDR S&P 500 ETF Trust (SPY): 532.90 -10.11 (-1.86%)

• iShares Core S&P 500 ETF (IVV): 535.77 -10.28 (-1.88%)

• Invesco QQQ Trust (QQQ): 448.75 -10.91 (-2.37%)

• Vanguard S&P 500 ETF (VOO): 489.91 -9.12 (-1.83%)

• Vanguard Total Stock Market ETF (VTI): 262.90 -5.40 (-2.01%)

Here’s how the The Magnificent Seven did on Friday:

• Apple (AAPL) [3.371T]: 219.86 +1.50 (+0.69%)

• Microsoft (MSFT) [3.036T]: 408.49 -8.62 (-2.07%)

• Nvidia (NVDA) [2.643T]: 107.27 -1.94 (-1.78%)

• Alphabet (GOOG) [2.073T]: 168.40 -4.05 (-2.35%)

• Amazon (AMZN) [1.747T]: 167.90 -16.17 (-8.78%)

• Meta Platforms (META) [1.238T]: 488.14 -9.60 (-1.93%)

• Tesla (TSLA) [662B]: 207.67 -9.19 (-4.24%)

Here’s how the major cryptocurrencies did yesterday:

• Bitcoin (BTC): $52,648.05 (10:15PM PST on 8/4/24)

• Ethereum (ETH): $2,285.37 (10:15PM PST on 8/4/24)

• Solano (SOL): $115.46 (10:15PM PST on 8/4/24)