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Wall Street Heads for Lackluster Month as September Approaches

The Dow scored multiple record highs

Deputy Editor
Aug 30, 2024 at 12:51 PM
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Wall Street's week was interesting to say the least, with the Dow Jones Industrial Average (DJI) scoring multiple record highs thanks to upbeat economic data. Meanwhile, the Nasdaq Composite (IXIC) fell as investors awaited a highly-anticipated earnings report from Nvidia (NVDA), which ended up being better than expected but still dragged down the tech-heavy index.

All the while, the Cboe Volatility Index (VIX) made outsized moves in both directions. Amid this volatility, The S&P 500 Index (SPX)  and Dow are heading for a fourth-straight monthly win, while the latter is the only index on track for a weekly gain. The Nasdaq is looking to log its second-straight month of losses.

The Best and Worst Stocks to Own in September

A new month is right around the corner, making now a good time to prepare for seasonality trends. Among the best stocks to own in September is Palo Alto Networks (PANW), which is already more than 50% higher over the last 12 months. On the flip side, Advanced Micro Devices (AMD) is worth avoiding, as multiple bear signals are flashing for the semiconductor giant.

Meanwhile, aerospace and defense stock Kratos Defense & Security Solutions (KTOS) is flashing a bullish combination that could help shares rise over the next 30 days. The same can't be said for copper miner Freeport-McMoRan (FCX), which is flashing a sell signal that could drag the shares lower over the ensuing month.

Unpacking More Quarterly Reports

While Nvidia's earnings dominated headlines, there are plenty of other reports that are worth unpacking. Pure Storage (PSTG) reported generally upbeat second-quarter results, but shares still plummeted after operating income guidance was below expectations. Meanwhile, cloud software giant Salesforce (CRM) saw higher-than-usual options volume after the blue chip's better-than-expected report. Multiple retail names helped investors gain insight into the state of consumer spending, with Abercrombie & Fitch (ANF) and Foot Locker (FL) moving lower after earnings, and Kohls (KSS) and Nordstrom (JWN) moving upward following their results.

Even More Tech, Retail Earnings Coming Up

Next week, investors will unpack August's final S&P U.S. manufacturing and services purchasing mangers' indexes (PMI) readings, as well as a number of tech and retail earnings. Meanwhile, Schaeffer's V.P. of Research Todd Salamone sees new heights in sight for the SPX, even if Senior Quantitative Analyst Rocky White thinks the ride could be bumpy along the way.

 

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