Dismal Economic Data Out of Europe Precede Tonight's Nvidia Earnings Event
Retailer profits persist this morning.
*The latest PMI data for August could influence Powell's stance on Friday.
Clear Secure celebrates a small but significant victory.
Nvidia's financial results tonight could provide insightful information.
After analyzing the quarterly results from Toll Brothers on Tuesday night, and now waiting for the earnings reports from retailers such as Kohl's, Abercrombie & Fitch, Foot Locker, and Williams-Sonoma on Wednesday morning, the market's attention will shift to the August Flash PMI data, which will be released shortly after the market opens. It is expected that the data will show a decline in the Manufacturing sector, while the Services sector will continue to grow. These figures, along with insights on inflation and the outlook for the last month of the current quarter, will be discussed before Fed Chairman Jerome Powell's comments at Jackson Hole on Friday. While it is anticipated that Powell will emphasize the Fed's reliance on data before their September meeting, the morning's data could potentially influence the specific wording used to convey that stance.
If the Flash August data turns out as predicted, it will strengthen our belief that the US economy is the leading force in the world's economy. Recent events have led to doubts about the state of China's economy, and today's initial PMI data for the eurozone and the UK suggest a continued decline in August.
"Clear Secure's Steady Success"
After successfully acquiring additional shares of Clear Secure (YOU) yesterday, the company has now unveiled its latest service, Reserve powered by Clear, at Halifax Stanfield International Airport (YHZ). This development signals the introduction of Reserve at its sixth Canadian airport, highlighting the growing demand for a smoother and more predictable travel experience. While we view this announcement as a positive step forward, we would be more interested in hearing about Clear's expansion with new airport partnerships. The fact that Reserve is now available in Amsterdam, Montreal, Berlin, Edmonton, Toronto, Frankfurt, Rome, and Vancouver suggests that Clear may be establishing a foundation for expanding its comprehensive services beyond the United States.
What Nvidia's Earnings Might Unveil
Investors will be closely observing Nvidia's quarterly performance after the stock's impressive surge this year, mainly attributed to the potential of AI. This will serve as a way to measure if the current market expectations for artificial intelligence are overly optimistic. We will also explore the future prospects for AI, data centers, and other sectors of Nvidia prior to Marvell Technology's earnings report tomorrow.
