Semiconductors primed for strong open after Nvidia earnings
Semiconductor stocks were broadly on track to open higher, as Nvidia’s strong second-quarter results boosted the sector. The iShares Semiconductor ETF (SOXX) climbed 2%.
Nvidia shares popped around 8% to lead the gains. Marvell Technology, Taiwan Semiconductor and Micron were all up 3% in the premarket. AMD advanced 2%.
SOXX pops
European shares open higher
The pan-European Stoxx 600 index was up 0.9% in early trade, with tech stocks climbing 1.9% to lead gains as all sectors and major bourses opened in positive territory.
India is on course to ban sugar exports: Reuters
India is poised to ban sugar exports from October as a result of lower cane yields getting from a lack of rainfall, Reuters reported citing three government sources.
The halt in shipments would mark the first in seven years.
“Food inflation is a concern. The recent increase in sugar prices eliminates any possibility of exports,” a government source reportedly said.
The potential ban comes after India’s export ban on non-basmati white rice, as well as a 40% export tax on domestic onions.
— Reuters, Lee Ying Shan
Bank of Korea holds rates unchanged at 3.5%
South Korea’s central bank held its benchmark policy rate at 3.5% — a rate that has been unchanged since the start of the year.
This is in line with expectations by economists surveyed in a Reuters poll — all 43 economists polled said they did not expect a change to the base rate.
The South Korean won strengthened slightly against the greenback following the announcement, trading 0.1% lower at 1,325.11.
— Lim Hui Jie
South Korea producer prices climb 0.2% year-on-year in July
South Korea’s producer price index grew 0.2% year on year in July, marking the 13th straight month of slowing growth.
This was lower than the revised figure of 0.3% in June and also the lowest rate of growth since December 2020.
The PPI tracks variations in the prices of goods shipped by industrial producers within the South Korean domestic market, and is a measure of inflation from the perspective of producers.
— Lim Hui Jie
Boeing shares fall in extended trading as 737 Max flaw will slow deliveries
Boeing shares fell about 3% in extended trading on Wednesday after the company said a manufacturing flaw would slow deliveries of its best-selling 737 Max.
Although the issue won’t impact safety, the company said it will need to conduct inspections to see how many airplanes are affected.
Boeing shares year to date.
Boeing said it discovered fastener holes on the aft pressure bulkhead that “did not conform to our specifications.”
Boeing shares have gained about 20% since the start of the year. The stock closed Wednesday about 6% below a 52-week high it hit at the beginning of the month.
—Christina Cheddar Berk
‘Correction’ count in latest Investors Intelligence survey jumps to 11-month high
The percentage of financial newsletter editors and advisors who see short-term weakness ahead in stocks surged to 37.1% in the latest weekly Investors Intelligence survey, up from 32.9% last week. The reading is the highest since the fall of 2022, after which the S&P 500 went on to fall to 3600 from 4280, the survey said.
“This group is raising cash after recently calling for a trading top,” II said. “The recent shifts want to lock in gains before they are gone.” Just last month, the number of advisors foresseing a correction was the lowest since early January, “pointing to elevated risk and the need for defensive measures. This category looks for short term market weakness, and if declines continue their number could increase further. As cash is raised while markets fall, there is new fuel for the next rally,” said II.
The number of bulls continued to shrink, falling to 44.3% from 47.1% last week and a July high of 57.1%, which nearly matched the Nov. 2021 peak of 57.2%. Bears dropped to 18.6% from 20.0% a week ago. The spread between the numbers of bulls and bears narrowed to 25.7 points from 27.1 last week and a two-year high of 38.5 reached in July.
— Scott Schnipper
Semiconductor stocks rise on heels of Nvidia’s earnings beat
Semiconductor stocks traded higher on Wednesday after Nvidia beat Wall Street expectations for second-quarter earnings.
Shares of AMD added 2.6% in extended trading, while peer Marvell Technology climbed nearly 4%. Taiwan Semiconductor was trading 2.3% higher. The broader VanEck Semiconductor ETF (SMH) added 2.4%.
The VanEck Semiconductor ETF (SMH).
