Amid a turbulent market, CNBC's Jim Cramer urges investors to stick with their own convictions, highlighting the importance of not following the wrongheaded vision of others and mentions Palo Alto Networks as an example of a company that rebounded after reporting a solid quarter despite initial skepticism from hedge funds.
Consumer weakness in the market has caused the stock of many companies to plummet, leading money managers to focus on enterprise hardware and software companies instead, with Jim Cramer recommending Apple, Amazon, and Nvidia.
Investors expecting a continued surge in technology stocks due to enthusiasm over artificial intelligence may face trouble as central banks tighten monetary policy, according to Bank of America strategists. The correlation between central bank liquidity and tech stocks is a cause for concern, as central bank balance sheets have shrunk while the Nasdaq continues to climb, indicating potential risks ahead.
Stocks are set to open slightly lower as all three major averages are on pace to post monthly losses, Oracle is upgraded to buy by UBS, and Salesforce is removed from JPMorgan's Analyst Focus List ahead of earnings.
Oracle's stock price rose by over 3% after receiving a recommendation upgrade from UBS analyst Karl Keirstead, who believes that investors are underestimating the potential of the company's GPU business and its Oracle Cloud Infrastructure.
CNBC's Jim Cramer advises investors to believe CEOs when they preannounce an earnings shortfall or cut their forecast, suggesting that it is important to take their word for it instead of searching for justifications to keep owning the stock.
The stock market sinks as a tech selloff occurs due to investors' fear of more Fed rate hikes, with Apple, Tesla, and Nvidia all experiencing significant declines.
Apple's stock has experienced a significant decline, losing about $200 billion in market capitalization, due to concerns over Chinese officials urging government employees to stop using iPhones, while analysts also predict a potential sell-off after the upcoming iPhone event.
Stocks were higher on Monday, with the Nasdaq leading the way, as Apple stabilized and the CNBC Investing Club with Jim Cramer highlighted key events including Salesforce's Dreamforce event, Apple's iPhone 15 event, Google's search trial, upcoming inflation data, and the expiration of the UAW labor contract. Additionally, Meta Platforms is developing a new AI system to rival OpenAI's model, while Oracle's earnings are set for release, with analysts expecting upside from Oracle Cloud Infrastructure.
Oracle shares dropped by about 5% in extended trading after the company reported slightly lower-than-expected fiscal first-quarter revenue, although earnings per share were better than anticipated.
Oracle narrowly missed market expectations for first-quarter revenue due to reduced spending on cloud services, leading to a drop in shares, but the company's advancements in networking technology make it well-suited to capture AI workloads and potentially boost its cloud infrastructure business.
Oracle's stock is facing a decline, but now is a good time to invest in its AI potential.
Stock indices closed in the red, with the Nasdaq 100, S&P 500, and Dow Jones Industrial Average all experiencing declines, while the technology sector underperformed and the energy sector led the session. The U.S. 10-Year Treasury yield dropped, while the Two-Year Treasury yield increased. The Small Business Optimism Index for August decreased, with inflation cited as a major concern among small business owners. Stocks opened lower on Tuesday, and U.S. futures trended lower as well. This week's focus will be on the Consumer Price Index and Producer Price Index data, which could impact the Federal Reserve's decision on rate hikes. Oracle's stock fell after missing sales estimates, while Casey's General and Tesla saw gains. JPMorgan's CEO criticized new Basel III regulations, and European indices traded in the green. In Asia-Pacific, markets ended mixed as traders await U.S. inflation data.
Oracle shares dipped 13.5% after disappointing earnings and revenue guidance, while WestRock rose 2.8% following news of a merger with Smurfit Kappa, and Apple shares fell 1.8% ahead of the launch event for its new iPhone.
Stocks slump as Oracle and Apple experience losses, with the Nasdaq Composite having its first losing day in three, while Apple's new iPhone 15 and iPhone 15 Pro fail to boost investor interest in the company.
Oracle's stock experienced a significant drop, resulting in Oracle chairman Larry Ellison losing billions of dollars and becoming the largest loser among billionaires, after the company's earnings report fell short of investor expectations.
Investors are selling and bringing the market down due to reasons like interest rates, macroeconomic weakness, fear of giving up on gains, the Federal Reserve, the political climate, and potential strikes, according to CNBC's Jim Cramer.
Wall Street is currently divided on whether the stock market is in a new bull market or if it needs to reclaim its previous all-time high, but investors should focus on buying quality stocks and holding them for the long term in preparation for the next bull market; two recommended stocks to consider are Oracle, which is expanding its presence in AI, and Palo Alto Networks, a leading cybersecurity provider.
Big Tech stocks have taken a beating recently, but there is a case for buying them now.
