The DC Today - Thursday, August 24, 2023
The Dividend Cafe
The Dividend Cafe - The Bahnsen Group
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🗓️ 24 August 2023
⏱️ 7 minutes
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Summary
Today's Post - https://bahnsen.co/44urVw5
Nasdaq futures were up over 1% this morning with technology exuberance following NVidia’s big earnings beat last night (the stock itself was up 10% pre market). So why did the stock end up closing just flat? Valuations do matter. We talk about it often but excitement over AI or other shiny object parts of the market get priced in with lofty expectations almost always well ahead of any reasonable realities (aka buy the rumor sell the news).
Down day in markets overall in a wide trading range on they day. The Dow was up over 220 points and closed down -373 points. The Nasdaq was up over 1% this morning and closed down -1.87%, and yields were higher across the curve. The Fed economic policy forum started today in Jackson Hole WY, with comments out tomorrow. We had jobless claims come in better than expected, and headline durable goods orders miss, and our August doldrums in markets continued so a few things to walk through in todays video podcast link below.
Links mentioned in this episode: TheDCToday.com DividendCafe.com TheBahnsenGroup.com
Transcript
Click on a timestamp to play from that location
| 0:00.0 | Welcome to the DC Today, your daily market synopsis of the Dividing Cafe, brought to you every Monday through Thursday to bring you up-to-date information and perspective on financial markets. |
| 0:14.6 | Good evening. Welcome to D.C. today. It is Thursday, August 24th, and it's good to be with you all here today. |
| 0:22.6 | Kind of a wide range today in markets. We had futures were actually up pretty nicely, |
| 0:28.6 | especially on the NASDAQ. We were up about one and a half percent before the market opened, |
| 0:32.4 | and it was largely to do with one of the largest chip makers out of the AI realm. |
| 0:39.2 | And so earnings were across the board just far better than expectations. |
| 0:46.5 | And some markets were up, tech stocks were up. |
| 0:49.2 | There were sort of some momentum and some exuberance going into technology as we hit the open. |
| 0:55.1 | And so markets were off to the races. We were up about 220 points on the Dow early morning. Nasdaq was up. And we just |
| 1:01.3 | gave that back throughout the rest of the day. I wrote it in there. But some of these sort of what |
| 1:06.4 | we've talked about is shiny objects where there's really exciting things out there like artificial |
| 1:11.0 | intelligence and how it will change the world potentially and people people usually buy |
| 1:16.8 | into stocks really far ahead of any of that ever come to fruition from an earning standpoint. |
| 1:21.0 | This particular company is actually starting to see those earnings come through, |
| 1:24.8 | which is a good thing. But the stock has just priced so far to |
| 1:28.4 | perfection at this point. There's not a whole lot that's going to support that type of valuation. |
| 1:33.5 | And so valuation isn't just matter. And it was kind of a classic, buy the room or sell the |
| 1:38.3 | news on that particular company, which was up 10% to open and end up closing literally flat on the day. |
| 1:44.7 | And then the overall market sold off as well. Like I said, we're up 220. We end up closing down 373 on the Dow. Nasdaq was |
| 1:50.9 | up a percent in the morning, closed down on the day about 1.8% on the day. And then yields were up |
| 1:56.7 | across the board. Two year was over 5% again. I think some of that could have been. |
| 2:02.9 | There's the Fed Symposium meeting in Jackson Hole started today. There was some comments |
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