Stocks to Watch
It's been a rollercoaster ride for retail stocks lately. Dick's Sporting Goods, Macy's, Kohl's, Nordstrom, Gap, Best Buy, and Victoria's Secret have all seen significant drops in their share prices. Even Nike is experiencing its longest-ever losing streak. The trigger for these moves was some concerning signs from quarterly earnings reports, such as delinquent payments on credit cards and inventory shrinkage due to theft.
The Economy
Despite the poor performance of retail stocks, the overall market didn't fare too badly. The S&P 500 only dropped 0.3%, and the Nasdaq Composite was marginally higher. The Dow Jones Industrial Average shed 174 points. However, there are still uncertainties in the advertising market, which could impact Google's largest business. Its advertising revenue is expected to increase by just 5% this year, compared to an average of 19% annual growth over the last five years.
Other Significant Events
One significant event to watch is the upcoming IPO of British chip designer Arm. Riding on the AI wave, Arm could be the largest new listing this year. However, the recent cooling of the AI frenzy raises questions about whether buyers will still pay up for Arm's supposed AI prospects. Another event to keep an eye on is the earnings report from Nvidia, a major Google supplier that sells key technology for generative artificial intelligence applications.
These are just a few highlights from the market and economy. Stay tuned for more updates and analysis as we navigate through these dynamic times.
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