Market Update 21/8: Powell at Jackson Hole Economic Symposium, Stock to look at this week; Nvidia, Zoom.

The Jackson Hole Economic Policy Symposium 2023 will draw the attention of global investors. Fed Chairman Jerome Powell will deliver the keynote address. This year’s event is themed “Structural Shifts in the Global Economy” and will be held from August 24 to August 26. Hopefully, the full agenda and schedule of the Jackson Hole Economic Policy Symposium 2023 will be available by August 24 or 25.

It has long been a tradition that Fed chairs use Jackson Hole Symposiums to provide an update on the overall state of the economy, as well as to hint at potential changes to monetary policy. The Jackson Hole Symposium has become a key event for the Fed, as it gives the chair the opportunity to communicate their views on the economy and the current monetary policy to central bankers, economists, and market participants in an informal setting.

There is no doubt that the 2023 Jackson Hole Economic Policy Symposium is taking place at a time when most global central banks are at the end of their ability to curb inflation. The Jackson Hole Economic Policy Symposium 2023 could be a game changer in the face of changing economic conditions around the world. It is possible for developed nations to face the next challenge in terms of maintaining growth and not allowing their economy to slide into a recession in the future.

Why Should Investors Care about the Jackson Hole Symposium?

During last year’s Jackson Hole Symposium 2022, right after Federal Reserve Chairman Jerome Powell’s speech at Jackson Hole on Friday, August 26, 2022, the stock market declined sharply. The S&P 500 fell by 3.4%, the Dow declined by 3%, and the Nasdaq was down by 3.9%.

To minimize the effects of a recession on the U.S. economy, the Federal Reserve is currently attempting to bring inflation levels down near its long-term target of 2% while preventing an economic recession from occurring. Despite recent inflation trends, the S&P 500 is up 14.27% year-to-date. Nevertheless, the Federal Reserve faces a new challenge when determining when to stop raising interest rates and when to switch to rate cuts.

In the face of rising interest rates, it may be time to rebalance your portfolio and convert growth stocks to dividend-paying value stocks and fixed-income securities.

Stocks to Look at This Week

It’s almost the end of the second-quarter earnings season, with only a few major retail and technology names to report this week. Let’s dive our niche into Nvidia and Zoom.

Nvidia (NYSE: NVDA)

NVIDIA has confirmed that its next quarterly earnings report will be published on Wednesday, August 23rd, 2023 with an expectation of EPS of $2.09, an almost 100% increase from its last quarter of $1.09 (beating the market expectation by 18.8%). Along with market estimates of $11.12B, an increase of $3.93B from $7.19B.

NVIDIA’s earnings are expected to grow from $6.47 per share to $9.53 per share in the next year, which is a 47.30% increase. In terms of how investors will react prior to the earnings announcement, analysts’ consensus price target of $443.16, NVIDIA has a forecasted upside of 2.3% from its current price of $432.99

Nvidia's Future Projection

Earlier this year at Dell Technologies World, the two companies, Dell Technologies, and NVIDIA are working together to reduce the complexity of building and deploying Generative AI infrastructure announced as a project known as Project Helix, which means that both companies will deliver full-stack solutions consisting of technical expertise and pre-built tools that will be built on resources provided by Dell and NVIDIA.

A partnership between Snowflake Data Cloud and NVIDIA was announced at the Snowflake Summit 2023 to provide businesses of all sizes with an accelerated path to create customized generative AI applications using their own proprietary data, and to store these applications securely within Snowflake Data Cloud, a data cloud service. Moreover, NVIDIA announced that it has developed a new chip specifically designed for running artificial intelligence models in order to compete against its rivals in the AI hardware space, including AMD, Google, and Amazon.

The current NNDA stock is priced at $432.99 with an increase of $289.84, 202.47% in 2023.

The average price target is $521.77 with a high forecast of $800.00 and a low forecast of $440.00. The average price target is an upside of 20.50% change from the last price of $432.99.

Zoom Video Communications, Inc (NYSE: ZM)

Zoom’s earnings for the second quarter are due to be released on August 21 2023, and analysts expect that Zoom stock’s earnings will be about flat for the quarter. According to their forecast, the company is expected to make $1.07 per share in profit. In terms of revenue, the company is expected to earn $1.114 billion, a 1% increase.

Will Zoom survive the AI Battleground?

With the advent of artificial intelligence, Zoom Video is racing to develop more tools for its business communications platform to make it even more effective.

In the business market, Zoom’s main rivals are Microsoft (MSFT) and its Teams product line, which offers business communication tools similar to Zoom’s. With the help of startup OpenAI, the parent of ChatGPT, Microsoft is upgrading its products AI. Furthermore, Google (GOOGL) users prefer to stay on Google Suite and use Google Meet for meetings. In addition, they have also implemented their AI system, Google Bard, into the system.

Zoom’s Projection

Zoom has announced several planned innovations for 2023 and 2024. In addition to these initiatives, the company is integrating a greater amount of artificial intelligence into its products, which is expected to increase its annual profits by more than Wall Street forecasts. It is also developing new products, features, and partnerships with the goal of empowering and engaging the modern workforce through the development of integrated workstreams that empower and engage them.

One of Zoom’s major projects is the Video Engagement Center (VEC), a cloud-based contact center solution that connects businesses with their customers by providing engaging experiences that build rapport, trust, and the sharing of expertise in a structured and immersive virtual environment. Zoom Events Conference is another new event type that will be available on Zoom Events as part of Zoom Events. The host can organize multitrack and multiday events in a sophisticated format with rich functionality. This includes the event lobby, chat, networking, sponsors, surveys, recordings, and analytics.

The current ZM stock price traded at $66.29 with a total slide value of 0.56%. The average price target is $83.93 with a high forecast of $100.00 and a low forecast of $65.00. The average price target represents a 26.61% change from the last price of $66.29.

Source

Stock Market Today Live: Dow Falls 1000 Points After Powell’s Speech …. https://www.wsj.com/livecoverage/stock-market-news-today-08-26-2022.
Stock Market Outlook: Jackson Hole a Buying Opportunity, Fundstrat Says. https://markets.businessinsider.com/news/stocks/stock-market-outlook-jackson-hole-rally-fed-powell-inflation-hawkish-2022-8.
Here’s what’s next for stocks after Powell’s Jackson Hole speech – CNBC. https://www.cnbc.com/2022/08/29/heres-whats-next-for-stocks-after-powells-jackson-hole-speech.html.
Stock Market News Today: S&P 500 Scores a Win Ahead of Powell Speech. https://markets.businessinsider.com/news/stocks/stock-market-news-dow-fed-powell-nasdaq-jackson-hole-sp500-2022-8.
Here’s the trade on Nvidia ahead of earnings, according to analysts – CNBC. https://www.cnbc.com/2023/08/20/heres-the-trade-on-nvidia-ahead-of-earnings-according-to-analysts.html.
Nvidia is still making billions in Q4 2023 despite a giant drop in PC …. https://www.theverge.com/23608886/nvidia-q4-2023-earnings.
Dell & NVIDIA Deliver Full-Stack Generative AI Designs – Forbes. https://www.forbes.com/sites/stevemcdowell/2023/08/06/dell-technologies–nvidia-collaborate-on-full-stack-generative-ai-solutions/.
Snowflake and NVIDIA Team to Help Businesses Harness … – NVIDIA Newsroom. https://nvidianews.nvidia.com/news/snowflake-and-nvidia-team-to-help-businesses-harness-their-data-for-generative-ai-in-the-data-cloud.
NVIDIA Announces Financial Results for Second Quarter Fiscal 2023. https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-second-quarter-fiscal-2023.
Snowflake and NVIDIA Team to Help Businesses Harness … – NVIDIA Newsroom. https://bing.com/search?q=Nvidia+new+collaboration+business+prospect+August+2023.
Zoom Joins The AI Bandwagon, Projects Optimistic … – BusinessToday. https://www.businesstoday.com.my/2023/02/28/zoom-joins-the-ai-bandwagon-projects-optimistic-earnings-goals-through-2024/.
Zoom Announces Planned Innovations to Ignite the Next Era of …. https://investors.zoom.us/news-releases/news-release-details/zoom-announces-planned-innovations-ignite-next-era.
Zoom: What’s Next | Zoom Blog. https://blog.zoom.us/zoom-whats-next/.

The key takeaways/market update is a series by AxeHedge, which serves as an initiative to bring compact and informative In/Visible Talks recaps/takeaways on leading brands and investment events happening around the globe.

Do keep an eye out for our posts by subscribing to our channel and social media.

None of the material above or on our website is to be construed as a solicitation, recommendation or offer to buy or sell any security, financial product or instrument. Investors should carefully consider if the security and/or product is suitable for them in view of their entire investment portfolio. All investing involves risks, including the possible loss of money invested, and past performance does not guarantee future performance.