Volatility plagued Wall Street this week. Retail earnings were in focus as investors eyed Bitcoin's (BTC) fall to $115,000, while chip sector profit-taking pushed the Dow Jones Industrial Average (DJI) off record highs. The Nasdaq Composite (IXIC) and S&P 500 Index (SPX) continued to struggle amid a tech selloff, with the Federal Reserve's July meeting minutes indicating members believed it was too soon for an interest rate cut.
By Thursday, the SPX had marked a fifth-straight daily loss, and the IXIC a third, with jobs data showing unemployment at its highest level since June 21. Stocks surged at midday on Friday, however, with the DJI scoring another all-time high after Fed Chair Jerome Powell's remarks at the Jackson Hole Symposium suggested the central bank may ease its monetary policy next month. The rally set the SPX and DJI on track for weekly wins -- the former's third-straight -- but the IXIC still paced for a losing week.
Retail Earnings for Days
Retailers stormed the earnings confessional this week. Walmart (WMT) stock gapped lower after a rare letdown, despite looking good prior to its report. Meanwhile, fellow Dow component Home Depot (HD) kept a positive outlook despite missing estimates for the second-straight quarter, while TJX (TJX) stock hit an all-time high after topping expectations for the second quarter. Target (TGT) and Lowe's (LOW) shares moved in opposite directions after earnings, and Urban Outfitters (URBN) stock looked like it could squeeze short sellers after its report next week. Plus, Ulta Beauty (ULTA) nabbed a pre-earnings bull note.
This Week in Tech
While the focus was undeniably on the retail sector, tech giants still made headlines. Options traders targeted Intel (INTC) stock's rebound, while Palantir Technologies (PLTR) stock's selloff attracted bears. Hewlett Packard Enterprise (HPE) scored an upgrade thanks in part to its latest acquisition, and quantum computing concern Rigetti Computing (RGTI) looked ready to bounce off a bullish trendline. Elsewhere, Zoom Communications (ZM) shares surged after the company's beat-and-raise.
Inflation Data Lined Up Next
A gross domestic product (GDP) update and the personal consumption expenditures (PCE) price index for July is due out next week. The earnings docket remains packed, with reports from Abercrombie & Fitch (ANF), Alibaba (BABA), Best Buy (BBY), Dell Technologies (DELL), Dick's Sporting Goods (DKS), Dollar General (DG), Kohl's (KSS), Nvidia (NVDA), and ULTA coming up. In the meantime, dig into this consumer strength signal suggesting short-term caution, and find out where to look for evidence of SPX cracks.
