Over the last few trading sessions, the market has started to consolidate below resistance, as shown yesterday.

ET: Unit Labor Costs, Q2 preliminary (9.5% expected, 12.6% prior)Įarnings Market Trading Update – The Market Begins To Consolidate ET: Nonfarm Productivity, Q2 preliminary (-4.6% expected, -7.3% prior) ET: NFIB Small Business Optimism, July (89.5 expected, 89.5 prior) Per the press release: “ The shortfall relative to the May revenue outlook of $8.10 billion was primarily attributable to lower sell-in of Gaming products reflecting a reduction in channel partner sales likely due to macroeconomic headwinds.” NVDA was down about 6% on the day but is still up almost 15% over the past month. The more important takeaway is that, like many other companies, NVDA blames weaker economic growth for its forecast downgrades and financial shortfalls.

NVDA expects gaming revenue to be 33% lower than last year. NVDA, in a surprise pre-earnings announcement, is slashing its guidance primarily due to poor gaming product sales. As we noted last week, AMD and INTC lowered their earnings/sales forecasts due to expected weak PC sales. NVIDIA (NVDA) and other chip makers are warning that chip sales are falling below expectations.

Nvda earnings august