TLDR

MARKET RECAP → Despite NVDIA’s (NVDA) earnings report on Wednesday leading the market higher earlier Thursday … it seems the jitters around the key speech from Jerome Powell tomorrow at Jackson Hole became the prevailing narrative, sending all major indexes lower for the day.

COUNTDOWN TO JACKSON HOLE → Powell’s Jackson Hole speech Friday was acutely in focus today. The Fed has been navigating inflation’s wild ride with a mix of caution and clarity. This key commentary is likely to have a wide-ranging impact on stocks (and bonds).

? DOLLAR TREE FALLS: Despite Dollar Tree’s (DLTR) better-than-expected Q2 earnings results, Q3 EPS guidance fell short of expectations as margins are pressured by price-sensitive shoppers, inventory shrinkage (i.e., stolen or damaged goods), and rising fuel costs..

Sean Horgan

Head of Investor Relations @ MoneyLion

$shorgan

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Today’s S&P 500 Heatmap

Source: finviz.com

Today’s Top News

COUNTDOWN TO JACKSON HOLE

? Jerome Powell, Federal Reserve Chair, will take the stage tomorrow at Jackson Hole to detail the Fed’s endgame strategy against inflation. The drama? Not as spicy as previous years, but the stakes? Sky-high.

? The once-clear path of hiking interest rates to curb inflation has now become a winding road of debates. As inflation chills out, the big question looms: How much tightening is *really* left?

?️ Powell’s message? A mixtape of caution and clarity. While he’s all for not easing up too soon, he’s also keen on breaking down “data-dependence” for the markets. Because, let’s face it, everyone’s hanging on every data drop.

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Source: shutterstock

DOLLAR TREE DRAMA

? Dollar Tree’s (DLTR) shares took a nosedive, hitting a 52-week low. Why? Shoppers were all about essentials, leaving those discretionary items collecting dust on the shelves.

? CEO Rick Dreiling painted a picture: a tough economic backdrop and a throwback to pre-pandemic spending. But hey, on the bright side, they saw gains in traffic and market share.

? While Dollar Tree surpassed Wall Street’s Q2 expectations, they adjusted their profit outlook. Blame it on more low-margin buys, shrinkage issues (a term used for lost, stolen, or damaged inventory), and those pesky rising diesel fuel costs.