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Good morning investors!

If this is your first time reading, welcome to The Investor’s Edge — a thriving community of nearly 20,000 subscribers striving to be better investors with an edge in the market.

Every Wednesday we publish “The Mid-Week Wrap-Up” — your ticket to being well informed and staying ahead in the investment game!

This report is designed to help investors of all skill levels break down important stories/topics within the stock market. And best of all, we cut through all of the BS and give you exactly what you need to know in easy to digest, bite sized pieces of content.

This article is designed to truly give you that EDGE in the day ahead!

Grab your afternoon pick me up and let’s dive in.

Market Talk

The major indexes are all lower to start the week as markets await the all important Nvidia earnings report.

3 Stories Moving the Market

These are some of the biggest stories so far this week that are having an influence on market action.

Nvidia reports earnings after the bell, here’s what to expect

Nvidia is set to report its second fiscal-quarter earnings, with Wall Street expecting adjusted earnings per share of 64 cents and revenue of $28.7 billion.

Nvidia has greatly benefited from the ongoing AI boom, with its market value increasing more than ninefold since the end of 2022.

Investors are watching for signs that AI demand remains strong, although growth is expected to slow over the next seven quarters. Nvidia's forecast for the October quarter is crucial to justify its stock price, with analysts projecting 71 cents in earnings per share and 77% annual revenue growth.

Investors will also seek updates on the launch of Nvidia's next-generation Blackwell AI chips, which may be delayed, potentially shifting revenue into future quarters while boosting sales of current-generation Hopper chips.

Buffett’s Berkshire Hathaway hits $1 trillion market value, first U.S. company outside of tech to do so

Warren Buffett's Berkshire Hathaway has reached a $1 trillion market capitalization, becoming the first non-technology company in the U.S. to do so.

The company's stock has surged over 28% in 2024, outperforming the S&P 500's 18% gain.

Buffett, who is nearing his 94th birthday, has recently shifted to a more defensive strategy, selling off significant assets, including half of his Apple stake, and raising Berkshire’s cash reserves to a record $277 billion by June.

Berkshire has invested heavily in short-term Treasury bills, holding $234.6 billion worth, more than the U.S. Federal Reserve.

Additionally, Berkshire has sold over $5 billion in Bank of America stock, a company Buffett supported during the 2011 financial crisis.

Super Micro shares fall 23% on filing delay, Hindenburg Research report

Shares of Super Micro Computer dropped over 23% after the company announced a delay in filing its annual report with the SEC, citing the need for more time to assess its internal controls over financial reporting.

Super Micro, which produces computers used as servers and in AI applications, has major clients like Nvidia, AMD, and Intel.

Despite being up over 47% year-to-date, investor confidence was shaken when Hindenburg Research disclosed a short position in the company, alleging evidence of accounting manipulation.

In Other News

In this section we'll be curating a selection of news headlines we think you'll find interesting. If a topic catches your eye, click the provided links to read more about it.

• Zuckerberg says Biden administration pressured Meta to censor COVID-19 content

• Eli Lilly releases new form of weight loss drug Zepbound for half the price to boost access, supply

• Foot Locker shares drop 12% despite first comparable sales growth in six quarters

• Kohl’s Shares Rise as It Lifts Full Year Profit Outlook

• Chewy shares soar on solid Q2 print, improved profit flow-through

• Shares of Abercrombie & Fitch plunge 15% after CEO warns of ‘increasingly uncertain environment’

• NFL owners vote in favor of private equity investment; select firms commit $12 billion

• Weekly mortgage demand stalls, even though rates drop to lowest since April 2023

• Lego revenue jumps 13% in first half of 2024, boosted by Lego Fortnite and diverse brick sets

• NFT Marketplace OpenSea Gets SEC Warning of Enforcement Action

• French prosecutors say Telegram messaging app CEO has been freed from custody, awaits court appearance

The Second Half

While there are several earnings and economic reports left this week, Nvidia’s earnings and the PCE report are the two major catalysts everyone will be watching, including us.

Earnings Reports

There are still some major earnings this week. At the Investor’s Edge we will be watching Nvidia, Salesforce, CrowdStrike, Lululemon, and Ulta Beauty.

Here is the calendar of earnings releases scheduled for the rest of the week:

Economic Reports

Here is the calendar of events scheduled for the remainder of the week:

The PCE inflation report will be the main focus as we close the week, though there will also be the latest GDP data, initial jobless claims, consumer sentiment and pending home sales.

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Thank you for reading this edition of the Mid-Week Wrap-Up.

Until next time investors!

Mark & Chris

The Investor’s Edge

Disclosure

This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.