Stock Market Today: Dow Adds 243 Points Despite Nvidia Stock Slump
Nvidia shares stalled after the chipmaker's earnings report, while the Dow survived a late-day selloff.


Joey Solitro
Stocks opened higher Thursday and rallied into the afternoon as investors brushed off a disappointing earnings report from Nvidia to cheer an encouraging round of economic data. However, a late-day selloff sent two of the three main indexes into the red.
Ahead of the open, data from the Labor Department showed initial jobless claims fell by 2,000 last week to a seasonally adjusted 231,000.
Wall Street also got to see the Bureau of Economic Analysis' latest update on gross domestic product (GDP), which showed the U.S. economy grew at an annual rate of 3% in the second quarter, up from the previous estimate of an increase of 2.8%.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"The message from this morning's data is 'steady as she goes,'" says Chris Larkin, managing director of trading and investing at E*Trade. "Weekly jobless claims dipped slightly, GDP was revised up, and the economy isn't collapsing. In this market, good news is good. There's nothing here to make the Fed reconsider cutting rates next month."
The Friday morning release of the July Personal Consumption and Expenditures (PCE) Price Index should put more weight behind a September rate cut. "Tomorrow's PCE data will likely reflect continued progress on disinflation and persistent consumer spending," says José Torres, senior economist at Interactive Brokers.
Nvidia drops on disappointing revenue outlook
This morning's economic data helped dull the pain of Nvidia's negative earnings reaction. While the AI bellwether reported another quarter of jaw-dropping growth in its highly anticipated print, its share price fell 6.4% on disappointing third-quarter revenue growth (+8% quarter-to-quarter vs Q2's 15% increase).
"Here's the issue, the size of the beat this time was much smaller than we've been seeing," says Ryan Detrick, chief market strategist at Carson Group. "Even future guidance was raised, but again not by the tune from previous quarters. This is a great company that is still growing revenue at 122%, but it appears the bar was just set a tad too high this earnings season."
Dollar General suffers its worst day ever after earnings
Nvidia was not the only one making earnings waves. Dollar General (DG) stock, for one, plunged 32.2% – its biggest one-day drop ever – after the dollar-store chain fell short of top and bottom-line expectations for its second quarter. The company also slashed its full-year forecast, citing "financially constrained" customers and the need for better-controlled inventory.
"It appears that the paycheck-to-paycheck consumer remains challenged, while those who still have spending power continue to do so, albeit more selectively," says Louis Navellier, chairman and founder of Navellier & Associates.
Affirm soars after earnings
Affirm Holdings (AFRM) stock soared 31.9% after the buy now, pay later company reported fiscal fourth-quarter earnings that were higher than analysts expected. Affirm also issued a strong outlook for its first quarter.
Still, Wedbush analyst David Chiaverini maintained an Underperform (Sell) rating on the tech stock. While Chiaverini admits the results were solid and highlighted Affirm's expectation to be profitable on a GAAP basis by the end of this fiscal year, "we believe consumer lenders such as Affirm should be valued more in line with other consumer finance balance sheet lenders."
Salesforce stock was little changed after beat-and-raise quarter
Salesforce (CRM) was also in the earnings spotlight, though its share-price move was muted relative to some of the other companies that reported. Indeed, the Dow Jones stock fell 0.8% even after the software-as-a-service (SaaS) firm beat Q2 estimates and raised its full-year forecast. The company also announced the departure of Amy Weaver as chief financial officer.
"While sales appear steady, the negative news was CFO Amy Weaver's resignation who was well-liked by the Street given her successful push for operating leverage," says Needham analyst Scott Berg. "The call's highlight was details given for its new AgentForce bot technology CRM believes can drive incremental sales in Sales and Service Clouds."
As for the main indexes, the Dow Jones Industrial Average jumped 0.6% to 41,335, a new record closing high. The S&P 500 closed fractionally lower at 5,591 and the Nasdaq Composite slipped 0.2% to 17,516.
Related content
- Can a President Fix Inflation?
- If You'd Put $1,000 Into Nvidia Stock 20 Years Ago, Here's What You'd Have Today
- Kiplinger's Earnings Calendar and Analysis
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
- Joey SolitroContributor
-
What Services Are Open During the Government Shutdown?
The Kiplinger Letter As the shutdown drags on, many basic federal services will increasingly be affected.
-
From Camping to Boating: Here's How to Stay Connected Off-Grid
There's nothing quite like the peace of off-road adventures. However, ensure you have a stable connection in case you need it.
-
What the Rich Know About Investing That You Don't
People like Warren Buffet become people like Warren Buffet by following basic rules and being disciplined. Here's how to accumulate real wealth.
-
Ten Ways Family Offices Can Build Resilience in a Volatile World
Family offices are shifting their global investment priorities and goals in the face of uncertainty, volatile markets and the influence of younger generations.
-
3M, GM, Blue Chips Lead to the Upside: Stock Market Today
The S&P 500 followed the Dow Jones Industrial Average into green territory, but the Nasdaq lagged the other indexes because of its tech exposure.
-
Should Your Brokerage Firm Be Your Bookie? A Financial Professional Weighs In
Some brokerage firms are promoting 'event contracts,' which are essentially yes-or-no wagers, blurring the lines between investing and gambling.
-
Supermarkets Have Become a Pickpockets' Paradise: How to Avoid Falling Victim
Some stores regularly rearrange inventory with the aim of increasing purchases, and they're creating opportunities for thieves to steal from customers.
-
Dow Adds 516 Points on Broad Optimism: Stock Market Today
Easing trade war tensions and promise from early earnings reports has investors looking on the bright side to start the week.
-
I'm a Wealth Adviser: These Are the Pros and Cons of Alternative Investments in Workplace Retirement Accounts
While alternatives offer diversification and higher potential returns, including them in your workplace retirement plan would require careful consideration.
-
I'm a Financial Planner: If You're Within 10 Years of Retiring, Do This Today
Don't want to run out of money in retirement? You need a retirement plan that accounts for income, market risk, taxes and more. Don't regret putting it off.