Key Takeaways

• Dollar General’s CEO said that its three softest weeks for second-quarter comparable-store sales were the last weeks of each month. 
• That, he said, suggests trouble stretching budgets to last the month.
• Meanwhile, he said, most of the retailer’s customers say they’re worse off financially than they were half a year ago.

Dollar General (DG) noticed a spending trend in its latest quarter. It doesn’t spell financial health for some U.S. consumers. 

The discount retailer reported second-quarter results Thursday, logging only slim gains in same-store sales for the quarter and scaling back its outlook for them over the balance of the year. CEO Todd Vasos said on a Thursday conference call with analysts that its three softest weeks for second-quarter comparable-store sales were the last weeks of each month. 

“This pattern suggests that our customers are less able to stretch their budgets through the end of the month,” said Vasos in the call, a transcript of which was made available by AlphaSense. “We believe the softer-than-anticipated sales performance in Q2 is at least partially attributable to a core customer that is less confident of their financial position.”

Core Customers Cutting Back on Necessities

Vasos also cited customer surveys: Most Dollar General customers, he said, say they’re worse off financially than they were half a year ago. 

And more than 60% of the company’s “core” customers — households earning less than $35,000 annually — said higher prices have led them to cut back on buying necessities. A quarter said they expect to miss a bill payment in the next six months. 

Plenty of consumer-facing companies have highlighted signs of stress in the consumer economy in recent weeks. In many cases, they’ve suggested that their customers are looking for ways to save without changing broader spending habits — in effect, attempting to stretch their dollars. Walmart (WMT) said it has attracted service-minded higher-income consumers. 

“While middle and higher income households are seeking value as well, they don’t claim to feel the same level of pressure as low income households,” Vasos said. 

 “Our core customer,” he said, is obviously struggling.” 

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Key Takeaways

• Analysts are optimistic after Salesforce beat expectations with its second-quarter results.
• Investors will be watching for continued margin growth and the reach of Salesforce’s new Agentforce AI platform.
• The consensus price target for Salesforce is $307, 18% higher than Wednesday’s closing price.

After Salesforce (CRM) reported better-than-expected results late Wednesday, Bank of America (BofA) Securities analysts raised their price target on the stock, citing record-high margins and the potential of its new artificial intelligence (AI) offering.

BofA upped its target to $325 from $316, calling the cloud software company “the next quality GARP,” an acronym for “growth at a reasonable price.” The bank’s analysts expect sustained low-double-digit growth moving forward, particularly if the consumer macroeconomic environment improves. 

The customer relationship management (CRM) company posted a record adjusted operating margin of 33.7% and raised its full-year guidance to 32.8%, but Jefferies analysts believe the actual figure could be even higher. The firm on Thursday reiterated its “buy” rating for Salesforce and maintained its $350 price target. 

Analysts also flagged the surprise departure of Chief Financial Officer (CFO) Amy Weaver, which was generally taken as a neutral or slightly negative development.

Agentforce AI Seen as Potential Profit Booster

Salesforce unveiled its Agentforce AI platform this quarter, which will offer autonomous enterprise CRM services starting in October. 

The new AI offering has the potential to materially increase Salesforce’s profit, analysts at Wedbush Securities said Thursday. The firm reiterated an “outperform” rating and $315 price target.

“While still battling through various headwinds in a choppy backdrop, this was a much-needed bounce back quarter with CRM making major strides in the field around monetizing AI across its massive install base while generating solid bottom-line expansion,” the analysts said. 

Shares of Salesforce were down slightly Thursday afternoon at $257.77, trading about 2% below where they started the year. By comparison, 25 brokers tracked by Visible Alpha have a consensus price target of $307, with most rating the stock a buy.

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Key Takeaways

• Wall Street analysts are more bullish on Nvidia today than they were before the earnings landed.
• The mean price target, as tracked by Visible Alpha, has risen to near $152 from below $143 before the results were reported.
• The shares were sliding Thursday morning as investors digested concerns about slowing growth.

Wall Street analysts are more bullish on Nvidia after its latest earnings than they were before them. 

Visible Alpha tracks 23 analysts following the chip giant’s stock. As of late Tuesday, ahead of the highly anticipated release of the quarterly report, 21 had buy or equivalent ratings on the shares; as of today, that’s at 22. 

And the mean price target is now $151.73, implying a 21% premium to Wednesday’s close. That’s up from a $141.69 mean before the results landed. 

Nvidia reported strong numbers late yesterday, though the shares are falling this morning amid concerns that the red-hot company’s growth may be slowing. 

Still, several analysts reiterated bullish calls on the stock today, with some raising price targets.

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Key Takeaways

• Salesforce shares jumped in premarket trading Thursday after the enterprise software company reported better-than-expected second-quarter results and lifted its full-year profit outlook, as customers increased spending on its suite of cloud products. 
• Thursday’s projected earnings pop positions the stock for a decisive breakout above the top trendline of a symmetrical triangle, potentially marking the start of a new trend higher.
• Amid post-earnings buying in Salesforce shares, investors should monitor important overhead chart levels at $287, $311, and $340.
• Following a breakout above the symmetrical triangle, the pattern’s top trendline, currently at $265, could flip from providing prior resistance into offering future support as the area also finds confluence from the nearby upward sloping 200-day MA.

Salesforce shares (CRM) jumped in premarket trading Thursday after the enterprise software company reported better-than-expected second-quarter earnings and boosted its full year profit outlook, as customers increased spending on its suite of cloud products.

The San Francisco-based company, which also announced late Thursday that Chief Financial Officer (CFO) Amy Weaver will step down from the role, has seen its shares come under pressure this year amid a slowdown in sales driven by leaner corporate budgets and growing competition in the cloud artificial intelligence (AI) software space.

Salesforce shares were up 4.8% at $271.25 about 90 minutes before the opening bell.

Below, we’ll make sense of what the technicals are saying on the Salesforce chart and point out key price levels that investors will likely be watching following the company’s earnings report.

Breakout From Symmetrical Triangle Pattern

Salesforce shares have oscillated in a symmetrical triangle since mid-May, with a notable stock gap of around 20% occurring early in the pattern. More recently, the price has consolidated just below the triangle’s top trendline and 200-day moving average ahead of the company’s quarterly report.

Thursday’s projected earnings pop positions the stock for a decisive breakout above this closely watched chart area, potentially marking the start of a new trend higher.

Amid the potential for a post-earnings rally, investors should monitor several important price levels on the Salesforce chart.

Monitor These Key Salesforce Chart Levels

The first area to watch sits around $287, a location on the chart that may encounter overhead selling pressure near a trendline that links the April 15 gap day high with a period of week-long consolidation that formed in mid to late May.

Buying above this level could see the share price move up to the $311 area, where sellers could look to offload shares around a range of comparable trading levels throughout March and early April situated just below the stock’s record high.

To forecast a price target above the all-time high (ATH), we can use the measuring principle. To do this, we calculate the distance of the triangle in points and add that amount to the pattern’s top trendline. In this case, we add $75 (distance between triangle’s two trendlines) and $265 (the pattern’s top trendline), which projects an upside target of $340.

Triangle’s Top Trendline Flips To Support

During retracements, investors should monitor the symmetrical triangle’s top trendline, currently positioned at $265. This location on the chart will likely flip from providing prior resistance into offering future support as it also finds confluence from the nearby upward sloping 200-day MA.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

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Shares Dropped Nearly 7% in Extended Trading on Wednesday

Key Takeaways

• Nvidia shares tumbled nearly 7% in extended trading on Wednesday after the AI darling topped earnings expectations but left investors disappointed as the latest numbers pointed to slowing growth.
• Thursday’s projected earnings-driven drop sees the shares poised to break down below a recent rectangle formation and the 50-day moving average, a move that could trigger further weakness in the stock.
• Amid post-earnings price movement, investors should monitor important chart levels in Nvidia shares at $116, $107, $97, and $91.

Nvidia (NVDA) shares tumbled in extended trading on Wednesday after the artificial intelligence (AI) darling’s quarterly earnings topped expectations but left investors disappointed as the latest numbers pointed to slowing growth. The chipmaker has wowed Wall Street in recent quarters with blowout earnings reports fueled by insatiable demand for AI, setting a high bar for the latest earnings release.

Although Nvidia shares are up around 150% since the start of the year, they have seen significant price swings in recent months, falling as much as 33% between July and August before staging a head-turning recovery ahead of earnings to trade just 11% below their record high through Wednesday’s close.

Nvidia shares dropped 6.9% to $116.95 in after-hours trading Wednesday.

Below, we take a closer look at Nvidia’s chart and use technical analysis to point out key levels to watch out for amid post-earnings price movement.

Projected Breakdown From Rectangle Formation

After staging an impressive recovery from this month’s low, Nvidia shares have consolidated within a narrow rectangle formation over the past seven trading sessions ahead of the company’s highly anticipated report. Although volume remains relatively low, share turnover has increased this week, indicating portfolio rebalancing before the quarterly results. 

Thursday’s projected earnings-driven drop sees the shares poised to break down below the recent rectangle and 50-day moving average, a move that could trigger further weakness in the stock.

Looking ahead, investors should monitor four key price levels that may come into play if the AI darling’s shares continue to undergo a post-earnings slide.

Nvidia Price Levels to Watch

The first sits around $116. This area could provide initial support near a trendline connecting the May peak and the high of a minor countertrend relief rally that occurred in early August.

A move below this level may see the shares fall to the $107 area, a location on the chart where buyers may seek entry points near a series of closely aligned trading levels in the stock between May and August.

Further selling could lead to a retest of the key $97 level, where Nvidia shares would likely encounter considerable support near twin March peaks, the first of which marked a prior record high in the stock.

Finally, it’s worth keeping an eye on the $91 area, a lower price target predicted when extracting the down trending bars pattern from July to August and positioning it from the high of the recent rectangle formation. If such a move were to play out, it would confirm a descending channel in the stock and could see a possible retest of this month’s low.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

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Key Takeaways

• President Joe Biden has proposed a 25% minimum tax on the unrealized gains of people who own $100 million in assets or more.
• Republicans adamantly oppose the tax and have criticized Vice President Kamala Harris, the Democratic presidential candidate, for supporting it.
• Currently, you only have to pay taxes on your investments when you sell them.

A longstanding proposal by the administration of President Joe Biden has revived the debate over whether the government should tax investment gains that exist only on paper.

The proposal to tax unrealized gains has drawn fire from Republicans, who are criticizing presidential candidate and Vice President Kamala Harris for backing Biden’s proposed policy. Republicans say the policy would discourage investment and slow economic growth—but some critics leave out the fact that it would apply only to people who are already extremely rich.

“Think about even everyday Americans across this country,” former Republican presidential candidate Vivek Ramaswamy said on CNBC earlier this month. “That means that if you’re a farmer, or if you’re a small business owner, you will owe taxes with cash you literally do not have in your pocket to pay those taxes.” 

Who Would a Capital Gains Tax Apply to?

This is true to the extent that the wealthiest 0.01% are “everyday Americans.” The proposal, put forward as part of the administration’s 2025 budget, called for a “billionaire tax.” The 25% minimum tax would apply to the unrealized gains of people who own $100 million in assets or more—only 9,850 people in the entire country, according to an estimate by wealth advisory firm Henley & Partners. 

The proposed tax is aimed at reducing wealth inequality. Because billionaires grow their wealth not by salaries and wages but by the value of their investments rising over time, the Biden administration argues that the current tax code allows “many of the wealthiest Americans to pay lower rates on their full income than many middle-class households pay.”

What Would Change Under the Proposal?

Currently, you only have to pay taxes on your investments when you sell them, paying a rate based on how much value your assets gained when you owned them.

Critics of a wealth tax, including the Libertarian Cato Institute, argue that taxing unrealized gains would be “economically destructive.” Opponents say it could lead to odd situations such as the government having to pay the likes of Elon Musk a large tax rebate when the value of his assets goes down.

Economists have debated the pros and cons of a wealth tax, and any proposal would still have to get through Congress—something the Biden administration has been unable to do as of yet.

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Key Takeaways

• Super Micro Computer shares fell again Tuesday after Hindenburg Research disclosed a short position in the server maker and published a report that accuses the company of accounting anomalies, among other issues.
• The share price recently made a failed retest of a descending triangle’s lower trendline, finding selling pressure near the 200-day moving average.
• Amid further weakness in Super Micro shares, investors should monitor key price levels on the chart at $479, $357, and $260.

Super Micro Computer (SMCI) shares fell again Tuesday after Hindenburg Research disclosed a short position in the server maker and published a report that accuses the company of accounting anomalies, among other issues, following a three-month investigation that included interviews with former senior employees.

While fellow artificial intelligence (AI) darling Nvidia (NVDA) has rebounded sharply leading into its quarterly earnings report after a recent correction, Super Micro shares still languish towards their August low amid concerns that more expensive next-generation AI chips could eat into profit margins.

The stock fell 2.6% during regular trading Tuesday, and then fell another 1.5% to $593.30 in after-hours trading. The stock has declined more than 20% since the start of the month.

Below, we take a closer look at the technicals on Super Micro’s chart and point out important price levels to watch out for.

Failed Retest of Descending Triangle

After setting a record high in early March, Super Micro shares oscillated within a descending triangle before breaking down below the pattern’s lower trendline last month. Since then, the price has made a failed retest attempt, finding selling pressure around the closely watched 200-day moving average (MA). Moreover, the 50-day MA has recently converged toward the 200-day MA, sitting poised to form an ominous death cross, a chart pattern that often marks the start of a new downtrend.

Amid weak technicals on the sever maker’s chart, investors should monitor three key price levels that may come into play if the stock moves lower.

Monitor These Price Levels Amid Further Weakness

The first area to monitor sits around $479 near the August low. Investors will likely be watching if buyers can defend this area, which marks a local bottom following the stock’s mover lower between mid-July and early August. The chances of a bounce here would increase significantly if the relative strength index (RSI) indicator flashes an oversold reading below the 30 threshold at the same time.

A failure to hold this important level opens the door for a slide down to $357, an area on the chart that may find buying interest near a trendline joining two peaks that formed in August 2023 and January this year, both of which represent prior record highs in the stock.

Further downside could see the shares fall to the $260 region, where investors may be on the lookout for buying opportunities near the June swing high that capped an impulsive move higher between late April and early June 2023. This area also aligns with a range of similar trading levels from August to December last year.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

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Key Takeaways

• Aircraft parts and electronics supplier Heico posted higher revenue despite a drop in sales at its Electronic Technologies Group unit.
• Fiscal third-quarter sales at Heico’s Flight Support unit set a record high.
• Investing guru Warren Buffett is a fan of Heico, adding the stock to his Berkshire Hathaway portfolio in the second quarter.

Shares of Warren Buffett-backed Heico (HEI) edged higher Tuesday after the aircraft parts and electronics supplier posted better-than-expected third-quarter profit despite declining Electronic Technologies Group sales.

Heico reported that fiscal 2024 third-quarter revenue rose 37% year-over-year to a record $992.2 million, a tick below analysts’ consensus estimate of $992.7 million compiled by Visible Alpha. Earnings per share (EPS) of 97 cents came in above forecasts of 91 cents.

Sales in the Electronic Technologies Group declined 1% to $322.1 million. The company said the drop “principally reflects lower other electronics and medical products net sales.” At the same time, Heico’s Flight Support segment sales jumped 68% to an all-time high of $681.6 million.

Acquisitions Credited With Boosting Results

Heico Chief Executive Officer (CEO) Laurans Mendelson said that along with gains in the Flight Support group, the company’s latest results were boosted by “strong contributions from our fiscal 2023 and 2024 acquisitions.”

Heico shares, which hit a record-high $258.84 on Aug. 15, edged higher to $246.70 as of 1:15 p.m. ET Tuesday. They are up about 38% this year.

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KEY TAKEAWAYS

• Paramount Global’s special committee said Edgar Bronfman Jr. has withdrawn from bidding for Shari Redstone’s media empire.
• Bronfman’s retreat sets the stage for the entertainment giant to be sold to David Ellison’s Skydance Media.
• The committee said that it had “contacted more than 50 third parties” to see if they were interested in bidding for Paramount.

Paramount Global’s (PARA) special committee said Edgar Bronfman Jr. has withdrawn from bidding for Shari Redstone’s media empire, setting the stage for the entertainment giant to be sold to David Ellison’s Skydance Media.

The special committee handling the twists and turns of the monthslong bidding process for Paramount said that it is closing the door on the company’s “go-shop” period and plans to move forward with the Skydance Media deal.

The committee said that it had “contacted more than 50 third parties” to see if they were interested in bidding for Paramount, whose shares are falling almost 5% in premarket trading Tuesday.

Skydance, Paramount Agreed To $8B Deal in July

Last month, Paramount announced it had agreed to a deal that would see Skydance and private-equity backer RedBird Capital Partners invest over $8 billion, including debt, to acquire controlling shareholder National Amusements and form “New Paramount.” Skydance and Paramount subsequently would merge.

Paramount shares, which were down 23% year-to-date through Monday’s close, are a further 4.7% lower at $10.80 about 30 minutes before the opening bell.

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Shares Plunged 29% on Monday

Key Takeaways

• U.S.-traded shares of Temu parent PDD Holdings plunged 29% on Monday after the China-based online retailer posted revenue that came in below expectations amid intensifying competition.
• Investors fret that profitability may slow as the company increases investments to scale its business.
• PDD shares broke down from a rising wedge on above-average trading volume, indicating selling participation by institutional investors.
• Investors may look for buying opportunities at key support levels including $99, $74, $54, and $45.

U.S.-traded shares in Temu parent PDD Holdings (PDD) plunged 29% on Monday after the China-based online retailer posted revenue that came in below expectations amid intensifying competition.

The company, whose American depositary receipts have still gained about 25% over the past year despite Monday’s drop, has grown rapidly to challenge e-commerce giant Amazon (AMZN), and Chinese rivals Alibaba (BABA) and JD.com (JD). However, investors now fret that profitability may slow as the company increases investments to scale its business.

Below, we zoom out by taking a look at PDD’s weekly chart and use technical analysis to identify important price levels where investors may look for buying opportunities.

Breakdown From Rising Wedge

Since bottoming out in March 2022, PDD shares trended higher within a rising wedge before Monday’s significant breakdown below the pattern’s lower trendline. Importantly, the move occurred on above-average trading volume, indicating active participation by institutional investors.

Amid the stock’s plunge, investors should monitor four key areas on the chart where bargain hunters may look for lower entry points.

Monitor These Key Support Areas

The first sits around $99 in close vicinity to the 200-week moving average, an area where the shares could encounter support near a horizontal line that connects a series of comparable trading levels from July 2020 to October last year. It’s worth noting that the stock fell below this closely watched technical level in Monday’s trading session before reclaiming it by the closing bell.

An inability to hold this level could see the shares fall to $74, a location on the chart where they may attract buying interest near a trendline that links multiple peaks and troughs between October 2020 and July last year.

Further bearish price action could drive a sell-off down to the $54 area, where the shares would likely garner support near the lower portion of a consolidation period that formed on the chart between December 2021 and February 2022 toward the end of a multi-month down trending move.

Finally, a more significant decline could see the stock revisit lower support around $45, where buyers may seek entries near the prominent November 2019 swing high, which also roughly aligns with the April 2022 countertrend peak and August 2022 swing low.

PDD shares were down 0.8% at $99.22 in premarket trading Tuesday about two hours before the opening bell.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

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