Schaeffer's 43rd Anniversary Stock Picks in 2024

Stocks Quietly Higher Before Nvidia Earnings

Investors are forecasting a 25 basis point interest rate cut in September

Digital Content Manager
Aug 27, 2024 at 11:37 AM
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The Dow Jones Industrial Average (DJI) is trading near breakeven this afternoon after yesterday's record high. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are modestly higher as well, as Wall Street looks ahead to Nvidia's (NVDA) earnings report, which is due out after tomorrow's close.* Though there is little economic data on tap until Thursday, investors are now forecasting a 25 basis point interest rate cut in September, per the CME Group's FedWatch Tool.

Continue reading for more on today's market, including:

  • Analyst: Hershey stock is a "sell."
  • Mixed results weigh on defense stock.
  • Plus, Nordstrom stock falters before earnings; bull note boosts apparel stock and LUMN gaps lower.

MMC Stats 0827

Nordstrom Inc (NYSE:JWN) is one of the most heavily traded stocks in the options pits today, with 2,037 calls and 7,690 puts exchanged so far, or 12 times the volume typically seen at this point. The September 17.50-strike put is the most popular contract, with new positions being opened there. JWN was last seen down 2.4% to trade at $21.15, ahead of the luxury retailer's second-quarter earnings report, which is due out after the close. The equity is testing support at the $21 level, which has been in place since May, and sports a 14.7% year-to-date lead.

Among the New York Stock Exchange's (NYSE) outperformers today is Hanesbrands Inc. (NYSE:HBI). The apparel stock is up 5.6% to trade at a fresh 52-week high $6.65 at last glance, following a price-target hike to $6.50 from $5 at UBS. HBI boasts a 48.4% year-to-date lead, and has been consolidating above penny stock territory since May.
 
Lumen Technologies Inc (NYSE:LUMN) is one of the worst stocks on the NYSE, down 9.6% to trade at $5.54 at last check, following news that Kerrisdale Capital holds a short position on the telecommunications company. LUMN is pulling back from its Aug. 7, 52-week high of $7.83, but long-term support from  the 20-day moving average is ready to contain today's retreat. For 2024, LUMN maintains an impressive 197.3% lead.

 

LUMN 20 Day

*Editor's note: an earlier version stated that Nvidia's earnings will report after today's close. This error has been fixed, Nvidia will report tomorrow after the market close. We apologize for the error.

 

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