The major US stock indices are closing lower led by the NASDAQ indices and small cap Russell 2000 the worst performers. A sampling of some of the declines shows:
- SharkNinja (SN): -9.13% at $174.92
- Credo Technology (CRDO): -8.65% at $206.63
- Cadence Design (CDNS): -7.60% at $313.04
- Whirlpool (WHR): -7.10% at $37.94
- CrowdStrike Holdings (CRWD): -6.90% at $215.07
- Dell Technologies (DELL): -6.80% at $425.00
- Strategy (MSTR): -6.03% at $124.93
- Coinbase Global (COIN): -6.00% at $176.84
- Ciena (CIEN): -5.87% at $360.33
- Synopsys (SNPS): -5.63% at $414.82
- Datadog (DDOG): -5.57% at $223.84
- Fortinet (FTNT): -5.31% at $161.85
- Palo Alto Networks (PANW): -5.25% at $362.08
- Oracle (ORCL): -5.23% at $141.32
- Shopify (SHOP): -5.12% at $139.82
- Block (XYZ): -5.05% at $77.88
Technology shares dominate the losers, with cybersecurity stocks under broad pressure. CrowdStrike is down 6.90%, followed by Datadog (-5.57%), Fortinet (-5.31%) and Palo Alto Networks (-5.25%). Chip-design software companies are also struggling, with Cadence Design falling 7.60% and Synopsys losing 5.63%, while Dell is down 6.80% and Oracle is off 5.23%.
Crypto-linked shares are moving lower as well, with Strategy and Coinbase both down about 6%. The weakness extends beyond technology: SharkNinja leads this group with a 9.13% decline, while Whirlpool is down 7.10%. Overall, the selling is broad across this list, with growth stocks taking much of the pressure.
Some good news after the close is that Dell has bounced back after it -6.8% decline as Dell delivered a strong earnings beat and an upbeat outlook, according to the figures provided, with AI servers a major contributor.
- Adjusted EPS: $7.04 vs. $4.91 expected—a beat of roughly 43%.
- Revenue: $47.0 billion vs. $44.9 billion expected.
The outlook also came in well above expectations:
- Full-year adjusted EPS: $25.50 vs. $18.99 expected.
- Full-year revenue: $192 billion vs. $174 billion expected.
- Full-year AI server revenue: $74 billion, up from previous guidance of approximately $60 billion.
- Q3 adjusted EPS: $6.50 vs. the previous figure of $4.48.
- Q3 revenue: $49 billion vs. $41.42 billion expected.
The headline numbers are strong, with Dell raising its AI server revenue forecast by about 23% and projecting revenue and earnings well above expectations. However, shares were down 6.80% in your earlier snapshot, suggesting the results have not been enough to support the stock. The figures alone do not establish why investors are selling despite the strong report.
Shares are currently up 10.25% at $468.89.
A snapshot of the major indices saw the Nasdaq 100 leading the declines, down 1.29%, followed by the small-cap Russell 2000, down 1.23%. The Nasdaq Composite is also down more than 1%, while the Dow and S&P 500 are showing more modest losses.
- Dow Industrial Average: 52,772.27, down 419.06 points (-0.79%).
- S&P 500: 7,631.48, down 54.67 points (-0.71%).
- Nasdaq Composite: 26,099.77, down 271.11 points (-1.03%).
- Russell 2000: 2,920.13, down 36.32 points (-1.23%).
- Nasdaq 100: 29,077.22, down 379.75 points (-1.29%).
Higher oil prices due to increased military tension in the middle east have ticked up the chance for a September hike to 68%. The 10 year yield moving to 4.80% is also a concern especially since the US treasury needs to continually fund the deficit at higher and higher rates exasperating the US deficit at the same time.
This article was written by Greg Michalowski at investinglive.com.