Key Takeaways

• Nvidia held stakes in Arm, SoundHound AI, Nano X Imaging, Recursion Pharmaceuticals, and Serve Robotics at the end of the second quarter, Nvidia’s 13F filing this week showed.
• Most of the stocks in Nvidia’s portfolio lost ground during the second quarter, though a majority have still gained since the start of the year.
• Arm, SoundHoundAI, and Serve have climbed at a faster pace than the S&P 500 so far this year, while Nano X Imaging lagged with a 13% gain, and Recursion Pharmaceuticals dropped nearly 32%.

Most stocks in Nvidia’s (NVDA) portfolio lost ground in the second quarter, though a majority of the company’s holdings have still gained since the start of the year.

The chipmaker held shares of Arm (ARM), SoundHound AI (SOUN), Nano X Imaging (NNOX), Recursion Pharmaceuticals (RXRX), and Serve Robotics (SERV) as of the end of the second quarter, Nvidia’s 13F filing this week showed.

Nvidia, along with most firms with assets under management of $100 million or more, is required to file this form quarterly with the Securities and Exchange Commission (SEC), disclosing equity holdings.

All But Arm Lost Ground in Q2

During the quarter, Nvidia maintained the number of shares it held of Arm, SoundHound AI, Nanox Imaging, and Recursion Pharmaceuticals, and added a stake in Serve Robotics, which began trading on the Nasdaq in April.

Arm was the only stock among those holdings that gained during the second quarter, while all of the other holdings fell. Shares of Arm climbed about 30%, while Nanox Imaging and Recursion Pharmaceuticals lost close to 25%, and SoundHound AI fell 32%. Serve Robotics shares lost about half their value from their initial public offering (IPO) price through the end of the period.

Nvidia’s Arm stake is its most valuable stock investment, worth over $320 million at the end of June.

Still, Most Are Higher for 2024

However, the majority of stocks held by Nvidia have still recorded year-to-date gains, with some growing at a faster pace than the S&P 500 index, which rose 16.5% over the period.

SoundHound AI shares have more than doubled in 2024 so far, much like Nvidia, while Arm surged 73%, and Nano X Imaging climbed 13% through Friday’s close.

Meanwhile, Serve Robotics has nearly tripled in value from its IPO price. The company recently announced a partnership with Shake Shack (SHAK) through Uber Technologies’ (UBER) Uber Eats, sending shares higher.

Recursion Pharmaceuticals was the only holding that lost ground over the same period, dropping nearly 32% from the start of the year.

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Key Takeaways

• Prominent investors cut their stakes in several big tech companies ahead of the global sell-off that hit markets in early August.
• Alphabet and Meta were some of the companies hedge funds pulled away from in the second quarter, 13F filings showed.
• The investors moved away from Alphabet and Meta as the companies face pressure to show their spending on artificial intelligence (AI) is paying off.
• Meanwhile, a few hedge funds boosted their stakes in AI chipmaker Nvidia, which could benefit from higher spending on AI infrastructure.

Prominent investors including Bill Ackman and David Tepper cut their stakes in several big tech stocks during the second quarter, ahead of the global sell-off driven by recession fears at the start of the month, recent 13F filings showed.

The Securities and Exchange Commission (SEC) requires most firms with assets under management of $100 million or more to file a 13F form quarterly, disclosing their equity holdings.

Ackman, Tepper, and Daniel Loeb’s hedge funds trimmed their stakes in Google parent Alphabet (GOOGL) in the second quarter, along with other major hedge funds like Renaissance, Bridgewater Associates, and Seth Klarman’s Baupost Group. Tepper, Loeb, and others sold some of their Meta (META) holdings as well.

The large investors moved away from Alphabet and Meta as the companies face pressure to show their hefty spending on artificial intelligence (AI) is paying off.

Intel (INTC) also stood out as a number of hedge funds cut their stakes in the second quarter. The chipmaker’s stock tumbled after the company recently reported a wider-than-expected loss and a $10 billion cost-saving plan that includes layoffs.

Warren Buffett’s Berkshire Hathaway (BRK.A) (BRK.B) has significantly trimmed its stakes in Apple (AAPL), though the iPhone maker’s stock still represents Berkshire’s largest holding. Some like Renaissance bought shares of Apple, while Dan Loeb’s Third Point added a stake in Apple during the period.

Meanwhile, several hedge funds including Bridgewater, Renaissance, and Tepper’s Apaloosa boosted their holdings in AI chipmaker Nvidia (NVDA), which could benefit from higher spending on AI infrastructure.

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Key Takeaways

• H&R Block shares are soaring Friday, a day after the tax-prep firm reported better-than-forecast fourth-quarter results.
• The company also said it would issue a quarterly dividend of 37.5 cents a share, a 17% increase, and a new share-buyback program of $1.5 billion.
• H&R Block also issued guidance calling for higher revenue and adjusted EPS in fiscal 2025.

H&R Block (HRB) shares are soaring Friday, a day after the tax-prep firm reported higher-than-forecast fourth-quarter results.

H&R Block said revenue for the three months to June 30 edged higher to $1.06 billion from $1.03 billion a year ago, while net profit fell to $257.8 million from $302.3 million. Both beat consensus analysts’ estimates compiled by Visible Alpha.

After registering adjusted earnings per share (EPS) of $4.14 on revenue of $3.61 billion in the 2024 fiscal year, the company sees fiscal 2025 adjusted EPS of $5.15 to $5.35 on revenue between $3.69 billion and $3.75 billion.

The company also said it would issue a quarterly dividend of 37.5 cents a share, a 17% increase, and a new share-buyback program of $1.5 billion.

CEO Touts ‘Client Success,’ Sees Momentum Building

“We continue to make progress, gain new insight, and translate this client success into value for shareholders, and are well positioned to build on this momentum in fiscal 2025 and beyond,” Chief Executive Officer (CEO) Jeff Jones said. 

H&R Block shares soared 18% soon after the opening bell Friday to $67.86. They are up almost 40% this year.

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Key Takeaways

• Walmart shares surged Thursday after the company reported second-quarter earnings that topped expectations and lifted its full-year outlook, as cost-conscious consumers turned to the discounter retailer for purchasing essential items.
• The share price set a record close Thursday on the highest trading volume since mid May, suggesting active participation by institutional investors.
• A bars pattern, which takes the stock’s trending move from early May to mid-July and positions it from this month’s low, forecasts an upside target in Walmart shares of around $80.
• During a retracement, the retailer’s shares may encounter support around $71 and $62.

Walmart (WMT) shares surged Thursday after the company reported second-quarter earnings that topped estimates and lifted its full-year outlook, as cost-conscious consumers turned to the discounter retailer for purchasing essential items. The stock gained 6.6% to $73.18, a new record closing high.

Below, we take a closer look at the technicals on Walmart’s chart and point out important price levels to watch out for following the stock’s earnings-driven jump.

Stock Gap to New All-Time High

Walmart shares have remained in a long-term uptrend since the 50-day moving average (MA) crossed above the 200-day MA to generate a golden cross buy signal in November 2022.

More recently, the big box retailer’s stock has undergone a pullback of around 6%, but promptly found buying interest near the 50-day MA prior to Thursday’s earnings-driven gap to a new all-time high (ATH).

Importantly, Thursday’s move occurred on the highest volume since mid May, suggesting active participation by institutional investors.

Watch This Key Upside Price Level

Given Walmart shares now trade in blue sky territory with no higher price action on the chart to analyze, we can use a bars pattern to project a potential price target. We do this by taking the stock’s trending move from early May to mid-July and positioning it from this month’s low. Doing so forecasts an upside target of around $80.

This technique also provides a timeframe of when Walmart shares may reach the target outlined above if price history rhymes. The prior trending move took place over 52 trading days, meaning that if a similar trend plays out, the shares could reach this target by around late October.

Retracement Areas to Monitor

Although the stock registered a record close on Thursday, there’s always the possibility for profit taking after a strong move, especially with the relative strength index (RSI) indicator nearing overbought territory. Investors, therefore, should monitor these two key support levels that may come into play during retracements.

The first sits around $71, an area near the stock’s prior record high that may need to be tested before a sustained move higher.

A more significant pullback could see the shares revisit the $62 area, a location on the chart just above the rising 200-day MA likely to encounter support from a two-month period of price consolidation between March and May.

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

• While economists are trying to forecast the Federal Reserve’s path policy path, officials have remained vague on their plans. 
• A handful of central bankers made remarks in public or the press after Wednesday’s inflation report, but none committed to cutting the influential fed funds rate at their September meeting.
• Market watchers are looking ahead to comments from Fed Chair Jerome Powell next week.

This week’s economic data didn’t move Federal Reserve officials to commit to a rate cut in September — at least not publicly.

A handful of central bankers have appeared publicly or spoken to the press since new inflation data showed annual price increases were the slowest since March 2021. The inflation data bolstered economists’ expectations that the Fed will cut its influential fed funds rate in September and had them talking about how deep the cut could be.

Central bankers, however, did not outline specific details of how the data was influencing their rate cut decision.

What Are Fed Officials Waiting For?

The Fed has held its the fed funds rate at a record high for the past year in an attempt to discourage spending and squash inflation. Inflation has come down from its 2022 peak, and economy watchers have said it is likely time to ease the central banks’ restrictive policy.

Central bankers have said they want confidence that inflation is sustainably moving toward its annual goal of 2% before cutting rates to avoid reigniting price pressures.

In public comments in Louisville, Ky. on Thursday, St. Louis Federal Reserve Bank President Alberto Musalem said inflation appeared to be on the right path, according to a Bloomberg News report.

The time for rate cuts is “nearing,” he said, but didn’t specifically mention plans for September.

Some Officials ‘Open’ to Interest Rate Cut in September

In an interview with the Financial Times, Atlanta Fed President Raphael Bostic said he was “open” to cutting interest rates at the Fed’s next committee meeting in September, echoing comments from Fed Chair Jerome Powell.

Meanwhile, Chicago Fed President Austan Goolsbee similarly kept his projections vague in an interview with Bloomberg News, suggesting the Federal Reserve may need to begin considering interest rate cuts as the labor market weakens.

Philadelphia Fed President Patrick Harker made no reference to interest rates or monetary policy on Thursday when he appeared at a conference on economic data.

While market watchers may not be getting much clarity from Fed officials this week, some hints may be ahead. Powell is expected to speak next week at the Jackson Hole Economic Symposium.

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Key Takeaways

• Retail spending rose more than expected in July, according to a new government report.
• Sales at auto dealerships rebounded after being depressed in June because of a cyberattack, but sales still beat expectations after setting that aside.
• The report suggests U.S. consumers have stayed resilient and are able to keep spending in the face of serious financial headwinds from inflation, high interest rates, and a cooling job market.

U.S. consumers have been showing signs of being tapped out financially, but it turns out they have some firepower left to keep spending, at least for the moment.

The volume of retail sales rose 1% in July from June to $709.7 billion, the highest monthly jump since January 2023, the Census Bureau said Thursday. That was more than the 0.3% increase forecasters had expected according to a survey of economists by Dow Jones Newswires and The Wall Street Journal.

Much of the surge came from a 3.6% increase in auto sales, which bounced back after slumping in June because of a software outage at dealers. Setting aside motor vehicles, parts, and gasoline, retail sales were still up 0.4%, suggesting that consumers’ finances are resisting economic shockwaves.

Why Do Retail Sales Matter?

Economists closely watch consumer spending because it’s the main engine of the economy, making up about 70% of the gross domestic product. The trend of consumer spending can help determine whether the economy grinds into a recession with job losses, or stays afloat.

A raft of worse-than-expected data on manufacturing, construction spending, and employment had made a recession look more likely, showing the effects of high interest rates on the economy and prompting a stock market selloff.

Can It Last?

The healthy retail spending in July, along with the continued downward trend of inflation, could allay some of those concerns, but economists still expect sales to slow down as the year goes on. Consumers, battered by inflation and a tougher job market with lower wage hikes, have increasingly relied on credit card debt to fuel spending, and are having more trouble paying it back.

“The resiliency of the U.S. consumer was on full display in July,” Jay Hawkins, senior economist at BMO Capital Markets, wrote in a commentary. “Nonetheless, we expect real consumer spending growth to moderate in the second half of this year amid slower job growth, rising unemployment and record-high credit card debt.”

The sales may also reflect how well retailers have adapted to the changing economic landscape. Many retailers, including Amazon (AMZN), Target (TGT), and Walmart (WMT) have offered more deals and discounts to appeal to cash-strapped customers said Claire Tassin, retail analyst at consumer research firm Morning Consult.

“Consumers have been extraordinarily resilient through this inflationary period,” she said. “Prices are high, and people are feeling that strain, so retailers have been responding accordingly.”

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Shares Jumped 14% in Extended Trading

Key Takeaways

• Ulta Beauty shares jumped 14% in extended trading on Wednesday after a regulatory filing revealed that Warren Buffett’s Berkshire Hathaway had purchased 690,106 shares in the cosmetics retailer during the second quarter.
• Since setting a record high in mid-March, Ulta Beauty shares have traded within a falling wedge, a chart formation that, while sloping downwards, indicates a bullish trend reversal.
• Amid the stock’s Berkshire-inspired jump, investors should watch key chart levels at $373, $406, $440, and $487.

Ulta Beauty (ULTA) shares surged nearly 14% in extended trading on Wednesday after a regulatory filing revealed that Warren Buffett’s Berkshire Hathaway (BRK.A, BRK.B) had taken a stake in the cosmetics retailer during the second quarter.

According to a 13-F filing made available after the close of trading Wednesday, the Omaha-based conglomerate purchased 690,106 shares of Ulta Beauty, with the size of the holding valued around $266.3 million as of June 30.

Berkshire’s investment comes as welcome news for shareholders in the specialty chain, whose share price, as of the close of trading Wednesday, has fallen 42% since the stock recorded its record high in March. In May, the company lowered its full-year fiscal 2024 outlook amid moderating demand.

Ulta beauty shares rose 14% to $375.50 in after-hours trading.

Below, we take a closer look at the technicals on Ulta Beauty’s chart and point out key price levels to watch out for.

Falling Wedge in Focus

Since recording their record high in mid-March, Ulta Beauty shares have traded within a falling wedge, a chart formation that, while sloping downwards, indicates a bullish trend reversal.

Prior to Wednesday’s post-market pop, buyers had defended the pattern’s lower trendline, enough to lift the relative strength index (RSI) indicator out of oversold territory.

Levels to Monitor Amid Berkshire-Inspired Jump

Amid Thursday’s expected Berkshire-inspired jump in Ulta Beauty shares, investors should monitor four key price levels.

The first sits around $373, an area on the chart where the price runs into a confluence of resistance from the October and May swing lows, the falling wedge’s top trendline and the downward sloping 50-day moving average (MA).

A close above this level could see the shares climb to $406, where they may encounter selling pressure from a horizontal line connecting the June 2023 swing low with multiple peaks and troughs from August last year to July this year.

Further buying may drive a rally to the $440 region, currently sitting just below the closely watched 200-day MA. This area would likely find resistance near a multi-month trendline linking the May 26, 2023 gap high, the August 2023 swing low, and the April 3, 2024 gap low.

Finally, a longer-term uptrend could test higher resistance near $487, where sellers may decide to lock in profits around the July 2023 swing high, which also roughly aligns with a period of consolidation from December to January that followed a stock gap.

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

• Encouraging inflation data this week has removed doubts among economists and market participants about whether the Federal Reserve will cut interest rates, but there’s a debate going on about how swift and deep those cuts will be.
• Some Fed watchers argue that if the central bank doesn’t make a big cut at its September policy meeting, it could result in a damaging economic slowdown.
• Fed Chair Jerome Powell has said the central bank could cut the benchmark rate as soon as September, but officials haven’t indicated that it’s a certainty. Upcoming comments from Powell and others could provide insight into the path ahead.

Inflation data released Wednesday provided the latest indication to economists and investors that the Federal Reserve will be in a position start cutting interest rates next month.

The debate among Fed watchers has moved on from whether rates will be cut to how soon and deep the cuts will be. With inflation apparently under control, attention has turned to the possibility that a failure to cut rates aggressively could pose serious damage to the economy, especially given recent data showing a weakening in the labor market.

“In a not-so-subtle shift, the market has moved from worrying about inflation to worrying about economic growth,” wrote Chris Zaccarelli, Independent Advisor Alliance chief investment officer. “The biggest change in the Fed’s plans has to be the cadence of cuts.”

Fed officials, who have a dual mandate to promote price stability and maximum employment, have also expressed concerns about deteriorating labor market conditions as inflation has moderated. They haven’t, however, committed to cutting rates.

Fed Awaiting More Data

Fed Chair Jerome Powell and his colleagues have said rate cuts are possible as soon as the next meeting of the Federal Open Market Committee in mid-September, but that it all depends on how data looks until then.

In an effort to bring inflation closer to the Fed’s 2% annual target, the committee has held the influential federal funds rate at a range of 5.25%-5.5% for more than a year, pushing up the costs of car loans, mortgages and other types of borrowing. The July consumer price report released Wednesday showed annual inflation falling below 3% for the first time in three years.

KPMG Chief Economist Diane Swonk said cooler inflation and a shift in the labor market “reinforces the argument for a half percent cut in September to ensure we avoid a full-blown recession.”

Not all Fed watchers agree that such a deep cut is required immediately.

“Nothing in today’s CPI report precludes a Fed rate cut in September, but it also doesn’t scream out for a panicked 50 basis point cut either,” wrote Scott Anderson, BMO Capital Markets chief U.S. economist. 

Traders are pricing in a 37% chance that the Fed will cut the rate 50 basis points to a range of 4.75%-5% at the September meeting, according to the CME Group’s FedWatch tool, which forecasts rate movements based on fed funds futures trading data. That is down significantly from early last week when, after a surprisingly weak July jobs report, traders projected a near 100% likelihood the Fed would cut 50 basis points and could even convene an emergency meeting.

Officials Could Provide Clarity Soon

Some central bankers as late as Tuesday were still seemingly unsure about rate cuts, calling for more data before committing to interest rate cuts.

It remains to be seen if Wednesday’s report was enough, and investors will likely turn their attention to upcoming remarks from Federal Reserve officials for answers. Later this week, St. Louis Federal Reserve Bank President Alberto Musalem and his counterpart in Philadelphia, Patrick Harker, are scheduled to speak.

Economists and investors are especially keen to hear more from Chair Powell, who is expected to speak on Aug. 23 at the Fed’s annual economic symposium in Jackson Hole, Wyoming.

Before the FOMC meets next, officials will also get another key reading on the health of the labor market with the release of the August jobs report on Sept. 6, as well as several inflation indicators.

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Key Takeaways

• Cisco is cutting 7% of its workforce, months after revealing a 5% cut in February.
• The company’s fiscal fourth-quarter results beat revenue and earnings expectations.
• The results were helped by Cisco’s $28 billion acquisition of cybersecurity firm Splunk in March.

Cisco Systems (CSCO) is cutting about 7% of its workforce as it pivots to higher-growth areas like cybersecurity and artificial intelligence (AI), the company announced in an SEC filing alongside its fiscal fourth-quarter results.

The move comes after the networking-equipment provider revealed a 5% cut in February that affected roughly 4,250 employees. 

In its fiscal fourth quarter, Cisco posted revenue of $13.6 billion, down 10% year-over-year, and earnings per share (EPS) of $0.54, down 44%. The dips weren’t as bad as analysts had projected, though, per Visible Alpha. 

The company projects fiscal 2025 revenue of $55 billion to $56.2 billion and EPS of $1.93 to $2.05. Analysts were looking for $55.6 billion and $2.30 per share, respectively. 

Quarterly subscription revenue was $27.4 billion, including revenue from cybersecurity firm Splunk, which Cisco acquired for $28 billion in March. That amounted to more than half of the company’s total sales.

Shares of Cisco rose more than 5% in after-hours trading Wednesday after inching higher during the regular session.

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Key Takeaways

• Goldman Sachs held $418.65 million in spot bitcoin exchange-traded funds (ETFs) as of June 30, an SEC filing showed.
• The majority of these holdings are in the shares of BlackRock’s IBIT fund.
• Previously, multiple executives from Goldman Sachs have shared skepticism about investing in bitcoin and cryptocurrency assets.

Goldman Sachs (GS), a traditional Wall Street firm considered a bitcoin skeptic, has disclosed a surprising investment in a recent regulatory filing—shares of spot bitcoin (BTCUSD) exchange-traded funds (ETFs).

Among other holdings, Goldman Sachs reported holding shares in seven out of 11 U.S.-based bitcoin ETFs, holding a total value of approximately $418.65 million in these assets as of June 30, according to a 13F filing made Tuesday.

It is unclear if these holdings were accumulated at the direction of private clients. Attempts to reach Goldman Sachs for comment were unsuccessful.

Goldman’s Bitcoin ETF Exposure

The largest spot bitcoin ETF position in the Goldman Sachs filing was nearly 7 million shares in BlackRock’s iShares Bitcoin Trust (IBIT), valued at $238.6 million. About 1.5 million shares of Fidelity’s Wise Origin Bitcoin ETF (FBTC) and roughly 940,000 shares of Invesco Galaxy Bitcoin ETF (BTCO) round out the top three bitcoin ETF investment disclosures by the investment bank.

The company also held shares of Grayscale Bitcoin Trust (GBTC), Bitwise Bitcoin ETF (BITB) , WisdomTree Bitcoin Fund (BTCW), and Ark 21Shares Bitcoin ETF.

To be sure, 13F filings should be read with some caution. They only show holdings and their value as of the reporting date, June 30 in this case, and offer no indication of any transactions made since. They also don’t disclose any short positions, which may not provide the complete picture about an institutional manager’s overall investment strategy.

This filing comes a few days after Morgan Stanley (MS) made headlines for allowing its advisors to pitch bitcoin ETF investments to clients on an unsolicited basis. That was a big move for a traditional wirehouse that typically had shied away from openly offering such products to clients.

Goldman’s Been Wary of Bitcoin

In the past, top Goldman Sachs executives have been skeptical about the investment case for bitcoin.

In April, Goldman Sachs Wealth Management Group Chief Investment Officer Sharmin Mossavar-Rahmani expressed skepticism about crypto as an asset class in an interview with The Wall Street Journal.

More recently, Goldman Sachs CEO David Solomon told CNBC that bitcoin could very well act as a store of value, similar to gold; and that he believes there may be value in the technology behind it to better the financial systems, but that’s “that’s different in speculating whether Bitcoin is going to be $70,000, $30,000, or $120,000.”

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