- All three major indices closed lower on Wednesday.
- Nvidia has released its quarterly results.
- Berkshire Hathaway has reached a milestone in market capitalization.
Here are five important things investors need to know at the start of the trading day:
1. Descent
Stock prices saw some decline on Wednesday, with all three major indexes posting losses. The Nasdaq Composite saw the largest percentage loss, falling 1.12% to end the session at 17,556.03. The S&P 500 fell 0.6% to close at 5,592.18, while the Dow Jones Industrial Average slipped 0.39% to close at 41,091.42. The decline was pressured by Nvidia’s 2.1% decline as Wall Street impatiently awaited the semiconductor maker’s quarterly results after the market closed. This caused the information technology sector to fall 1.3% in the session. Follow the market updates live.
2. Not impressed
Nvidia just beat Wall Street’s earnings expectations. In the fiscal second quarter, the AI darling earned an adjusted 68 cents per share on revenue of $30.04 billion. According to LSEG, analysts had expected 64 cents per share on revenue of $28.7 billion. In addition, Nvidia announced a $50 billion share buyback and gave stronger-than-expected guidance. For the current quarter, the chip giant expects revenue of around $32.5 billion, while analysts had expected just under $32 billion. However, the stock fell 7% in extended trading on Wednesday. Even before the results were released, Bernstein analyst Stacy Rasgon told CNBC that “buyer rumors” were more like $33 billion to $34 billion. In other words, for Nvidia to see a share price jump, the company would have had to significantly exceed expectations in its forecast.
3. The $1 trillion club
Warren Buffett takes the trading floor before Berkshire Hathaway’s annual meeting of shareholders on May 3, 2024 in Omaha, Nebraska.
Berkshire Hathaway has officially reached a $1 trillion market cap. On Wednesday, Warren Buffett’s Berkshire became the first non-technology company in the U.S. to reach the milestone after shares rose 0.8% during the session to $696,502.02, bringing the market cap to the $1 trillion mark, according to FactSet. That “is a testament to the company’s financial strength and value,” said Cathy Seifert of CFRA Research. “It’s significant at a time when Berkshire is one of the few conglomerates still standing.”
4. Super Delay
Super Micro Computer logos are featured at one of the world’s largest computer and technology trade shows.
It looks like Super Micro Computer will not file its annual report on time. The company announced Wednesday that it was “unable” to file its fiscal year report with the U.S. Securities and Exchange Commission. “SMCI management needs additional time to complete its evaluation of the design and operating effectiveness of its internal controls over financial reporting as of June 30, 2024,” the company said in a press release. Shares plunged more than 23% in Wednesday’s session, a day after Hindenburg Research disclosed a short position in Super Micro.
5. Resignation
A sign hangs at Salesforce headquarters in San Francisco, California on February 28, 2024.
Salesforce’s chief financial officer is leaving her post. The company announced Wednesday that CFO Amy Weaver will step down, but she will remain in her role until a successor is named. Following the change, Weaver will stay with the company as an adviser. Salesforce will consider internal and external candidates for the position, according to Marc Benioff, the company’s co-founder, chairman and CEO. The announcement came after the company reported better-than-expected second-quarter results and raised its full-year earnings forecast.
— CNBC’s Lisa Kailai Han, Hakyung Kim, Kif Leswing, Jonathan Vanian, Ari Levy, Yun Li, Ashley Capoot and Jordan Novet contributed to this report.
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