Market Movers: What’s on the Radar for Tomorrow’s Trading?

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Here’s what CNBC TV’s producers were watching during the rebound and what’s on the radar for the next session.

Inflation, Earnings, and Other Key Market Drivers

The market is bracing for a week filled with important economic data and earnings reports, with inflation taking center stage. The Producer Price Index (PPI), a measure of inflation at the wholesale level, is due out Tuesday at 8:30 a.m. ET, followed by the Consumer Price Index (CPI), which tracks inflation at the consumer level, on Wednesday at the same time. These reports will offer crucial insights into the trajectory of inflation and its impact on the Federal Reserve’s potential interest rate decisions.

The recent market pullback, with the **S&P 500** down more than 5% from its July 16 high, the **Nasdaq 100** off about 10% from its July 10 high, and the **Dow Jones Industrial Average** falling about 5% from its July 18 high, suggests investor concerns about inflation and its potential to curb economic growth.

Beyond inflation, the week will see earnings reports from major companies, including **Home Depot** and **Boeing**. Home Depot’s results will provide a glimpse into the state of the consumer spending on home improvement, while Boeing’s report will offer insight into the recovery of the aviation industry.

Key Takeaways:

• Inflation is in the spotlight this week with PPI and CPI reports on Tuesday and Wednesday, respectively. These reports will shape expectations about inflation’s impact on the economy and potential Fed actions.
• Key earnings reports, including Home Depot and Boeing, are scheduled for this week, offering insights into different sectors.
• **Nvidia’s recent rebound is a notable development, but the stock remains below its 52-week high.** The company’s performance will be closely watched in the coming weeks.
• The ‘Magnificent Seven’ tech giants are also facing a period of scrutiny, with several stocks showing some weakness.
• **Tesla’s Chinese competitors are experiencing a slump in August, prompting a closer look at their performance.**
• The 13F filing season begins tomorrow, offering a glimpse into the investment strategies of major fund managers.** Investors will be closely watching Warren Buffett’s Berkshire Hathaway’s disclosures.

Home Depot: A Beacon of Consumer Spending?

Home Depot, a retail behemoth known for its home improvement goods, is set to release its quarterly earnings report before the bell on Tuesday. The stock has remained flat since the last earnings report three months ago, but it’s still 13% below its March high. Investors will be watching for signs of whether consumers are still willing to spend on home improvement projects, which would offer an important signal about the overall health of the consumer sector.

Boeing: Seeking a Turnaround

Boeing, the aerospace giant, is scheduled to report July orders and deliveries on Wednesday morning. The stock has declined by about 10% since the last report a month ago, and is significantly down, 38.6%, from its 52-week high in December. Analysts will be looking for updates on production rates, delivery schedules, and any new orders to gauge the company’s progress in its turnaround efforts.

Nvidia: A Bright Spot in the Tech Sector?

Nvidia, a leading provider of graphics processing units (GPUs) and artificial intelligence (AI) technology, has enjoyed a recent resurgence, with its stock up 4.1% on Friday and 8.5% over the past five sessions. Despite this upward momentum, the stock remains 22.5% from its 52-week high reached on June 20. The market is buzzing about the potential for AI to drive further growth in Nvidia’s business, but it’s important to note that the company’s valuation is still high, and investors should be cautious about investing solely based on the AI narrative.

The ‘Magnificent Seven’: Navigating Volatility

The so-called “Magnificent Seven,” a group of seven tech giants that have dominated the stock market, are facing some headwinds. **Meta** is 5% from its July 8 high, **Apple** is 8.3% from its July 15 high, **Microsoft** is 13% from its July 5 high, **Alphabet** is 15.3% from its July 10 high, **Amazon** is 17% from its July 8 high, and **Tesla** is 29% from its Sept. 15 high. These stocks have been the subject of much investor scrutiny and speculation about the sustainability of their growth, particularly given concerns about slowing economic growth and potential for increased competition.

Tesla vs. China: Battle for Dominance

Tesla, the electric vehicle (EV) powerhouse, is facing increasing competition in the crucial Chinese market. All of Tesla’s major rivals, including **Li Auto**, **Xpeng**, **BYD**, **Zeekr**, and **Nio**, have experienced sharp declines in August and over the past month and three months. Li Auto is down 27% in three months while down 58% from its Feb. 27 high. Xpeng has slid 25% in one month and is 67% below its Sept. 1 high. BYD has fallen 13% in a month, 17% from its 52-week high. Zeekr has dropped 26% in a month and has plummeted 55% since May 13. Nio is down 26% in three months, and a staggering 71% from its 52-week high nearly a year ago. While Tesla remains a major player in the Chinese market, it is facing a fierce battle for market share as Chinese EV companies continue to innovate and capture market share.

The 13F Filing Season: A Window into Fund Managers’ Strategies

The 13F filing season, which starts on Tuesday, will provide investors with valuable insights into the portfolio holdings of top fund managers. These filings, which are required by the Securities and Exchange Commission, reveal the stocks that fund managers have bought and sold. One of the most closely watched filings is Warren Buffett’s **Berkshire Hathaway**, which has generated substantial returns for its shareholders in recent years. BRK.A is up 19% so far in 2024 and up 4% in three months. By analyzing the 13F filings, investors can gain a better understanding of market trends, identify potential investment opportunities, and gain insights into how institutional investors manage their portfolios.

Overall, the week ahead is shaping up to be a pivotal one for the stock market. Inflation data, earnings reports, and 13F disclosures will provide valuable insights and potentially impact investment strategies moving forward.