TLDR
- Dick’s Sporting Goods fell around 27% after cutting its full-year sales and earnings outlook
- Nvidia reports earnings Wednesday with a potential $280 billion market swing on the table
- AMD rose 3-4% after a Raymond James analyst upgrade as chip stocks rebounded
- Alibaba insiders including Jack Ma bought over HK$800 million in shares after a $10.2 billion capital raise
- The Nasdaq gained roughly 0.75% as tech stocks recovered from Monday’s selloff
Dick’s Sporting Goods Crashes After Earnings Warning
Dick’s Sporting Goods fell around 27% on Tuesday after the company slashed its full-year sales and earnings forecasts. That puts it on track for its worst single-day performance on record.
The company blamed weak sneaker demand and poor results from its recently acquired Foot Locker business. The Foot Locker deal was meant to expand Dick’s footprint in global athletic footwear, but early results have raised questions about how quickly management can turn things around.
Nike also traded lower on the news, as investors weighed whether the results point to wider weakness in the athletic footwear market.
Nvidia Earnings Could Swing the Market by $280 Billion
Nvidia reports its quarterly earnings on Wednesday and it could be the biggest market event of the week. Options traders are pricing in a move of around 5.4% in either direction following the report.
Given Nvidia’s massive market cap, that translates to a potential swing of roughly $280 billion in market value.
Wall Street is expecting quarterly revenue of around $92 billion, driven by strong demand for AI infrastructure. Investors will be watching data-center growth, gross margins, demand for Nvidia’s newest AI chips, and guidance for the next phase of AI spending.
Nvidia’s results also carry weight for the wider semiconductor, server, and networking sectors, which increasingly move in line with the company’s outlook.
AMD Jumps After Analyst Upgrade
Advanced Micro Devices rose roughly 3-4% on Tuesday after Raymond James upgraded the stock. The move came as chip stocks bounced back from Monday’s broad selloff.
Micron gained close to 4%, while Intel and Nvidia also moved higher. Investors returned to the sector ahead of Nvidia’s earnings.
AMD is one of Nvidia’s main competitors in AI accelerators and has been investing heavily in its Instinct GPU platform. While Nvidia still leads the AI data-center market, cloud providers are looking to diversify suppliers, which could open the door for AMD to gain ground.
Alibaba Insiders Buy Hundreds of Millions in Shares
Alibaba got a show of confidence from senior insiders after the company’s $10.2 billion share sale. Chairman Joe Tsai bought 720,000 Hong Kong-listed shares, and together with CEO Eddie Wu, the two have purchased more than HK$200 million in stock over two days.
Founder Jack Ma reportedly added more than HK$600 million in Alibaba shares. The insider buying followed a discounted equity offering designed to fund Alibaba’s growing AI operations.
Investors initially pushed back on the capital raise due to dilution concerns, but the volume of insider buying may help ease those worries.
Tech Stocks Rebound Ahead of Key Nvidia Report
The Nasdaq rose roughly 0.75% on Tuesday as technology stocks clawed back losses from Monday. Nvidia, Meta, Intel, and Micron all moved higher.
Lower oil prices helped ease inflation concerns that had weighed on markets in recent sessions. Investors also positioned ahead of Nvidia’s earnings and upcoming inflation data.
Wednesday’s session could be one of the most closely watched trading days of the summer. Nvidia’s results have the potential to influence not just semiconductor stocks, but the broader direction of the S&P 500 and Nasdaq.
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