Nvidia, Fed Confab, Inflation, GDP, and More to Watch This Week

Dow Jones
2 hours ago

Nvidia earnings and a key speech from new Federal Reserve Chairman Kevin Warsh will provide the highlights of August's final trading week during a summer that has sent stocks soaring.

The world's artificial-intelligence leader, and its biggest tech stock by market value, will publish its hotly-anticipated second-quarter earnings after the close on Wednesday. Analysts are expecting bottom-line earnings of $2.08 a share, nearly double last year's tally, and a staggering $92.06 billion in overall revenue.

More important, however, will be the company's near-term outlook for sales and profit growth, with investors looking for full-year revenue in the region of $400 billion, nearly double its $215 billion tally from 2025.

A handful of key software and tech stocks will also report second-quarter earnings this week, with Salesforce, CrowdStrike, and Marvell Technology on the docket.

Tech earnings have driven the lion's share of overall profit growth this quarter, with the market's three major sectors-information technology, communications services, and consumer discretionary-contributing around half of the benchmark's expected overall tally of $740 billion, according to LSEG estimates.

Beyond the earnings story, however, lurks a potentially even more definitive event: Warsh's first keynote address at the Jackson Hole Economic Policy Symposium in Wyoming on Friday. Investors and economists will closely observe any remarks from Warsh, who has eschewed the idea of offering insight into the Fed's thinking on interest-rate changes-beyond a commitment to fight inflation aggressively.

The final throes of August, however, aren't likely to be sleepy, with data on second-quarter gross domestic product, as well as a key reading of personal consumption expenditures inflation, expected Wednesday.

Key updates from the Conference Board's reading of consumer sentiment, as well as the University of Michigan's reading of inflation and spending outlooks, are also due on Tuesday and Friday, respectively.

Tuesday 8/25

S&P Cotality releases its Case-Shiller National Home Price Index for June. Economists forecast a month over month decline of around 0.1%, following a modest 0.15% increase in May.

The Census Bureau reports new-home sales for July. The consensus call is for a seasonally-adjusted tally of 630,000, around 2,000 higher than the June reading.

The Conference Board releases its monthly consumer sentiment reading for August. Economists forecast a reading of 90.2, down modestly from the 90.8 tally estimated for July.

Wednesday 8/26

The Bureau of Economic Analysis releases the personal consumption expenditures reading for July. Economists forecast a year-over-year reading of 3.6%, down modestly from the 3.7% figure published for June. Monthly inflation is expected to quicken to 0.07% from June's -0.1% reading. Core inflation, which excludes volatile food and energy, are expected to rise 3.2% on the year, down from 3.3% in June. The core month-over-month reading is expected to rise modestly, to 0.18% from 0.13%.

The BEA also releases its revised second-quarter estimate for gross domestic product growth. Economists expect an unchanged reading of 3.1%.

The Federal Reserve Bank of Atlanta releases its latest GDPNow index reading. The index currently forecasts 4% growth in the third quarter.

The Census Bureau releases the durable goods report for July. Economists forecast a seasonally adjusted reading of 0.5%, effectively unchanged from June.

Nvidia, Salesforce, Crowdstrike, and HP Inc. report second-quarter earnings results.

Thursday 8/27

Marvell, Workday, Dollar General, Dollar Tree, and Best Buy report second-quarter earnings results.

Friday 8/28

Fed chairman Kevin Warsh delivers an address at the Jackson Hole Economic Policy Symposium. He is expected to speak at 10:00 am Eastern time.

The Institute for Supply Management-Chicago releases the Chicago purchasing managers index for August. The consensus estimate calls for a headline reading of 57.9, signifying solid activity that's modestly higher than the 57.6 figure recorded in July.

The University of Michigan releases its final inflation and spending outlooks for August. The initial reading was pegged at 51, down from a reading of 55.2 in July.

 

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