News of the day for August 29, 2024

Nvidia ( NVDA ) shares are falling after the artificial intelligence (AI) darling's quarterly earnings beat failed to impress investors; Dell Technologies ( DELL ) shares are dipping ahead of its second-quarter results after the bell; Salesforce ( CRM ) shares are jumping after its earnings surpassed estimates; business review site Yelp ( YELP ) is suing Alphabet's ( GOOGL ) Google; and Big Lots ( BIG ) shares are tumbling as the home retailer reportedly mulls a bankruptcy filing. U.S. stock futures are little changed, with Friday’s inflation report expected to show cooling price pressures and reinforce expectations of a rate cut by the Federal Reserve. Here's what investors need to know today.

1. Nvidia Stock Falls as Results Fail to Impress

Nvidia ( NVDA ) shares are under pressure in pre-market trading after the AI chipmaker's results topped analysts' estimates but failed to wow investors and pointed to slowing growth . Jefferies analysts said Nvidia's outlook for third-quarter revenue at $32.5 billion may have also fallen short of investors' expectations despite coming in above analysts' consensus. Nvidia sought to allay concerns about reported delays of its Blackwell chip in its earnings call, saying it expects to "ship several billion dollars in Blackwell revenue" during the fourth quarter as production ramps up.

2. Dell Slides Ahead of Earnings With Margins, AI Developments in Focus

Dell Technologies ( DELL ) shares are falling 5% in pre-market trading ahead of second-quarter results due after the bell, with investors watching for margin improvements and updates on the PC maker’s position in the artificial intelligence (AI) server market. Analysts project revenue to grow to $24.18 billion and net income of $871.01 million, both up from the same period last year. Analysts said the company could speed up its cost-cutting efforts to improve margins, as chipmaker Intel ( INTC ) and networking-equipment company Cisco ( CSCO ) have done. Lululemon Athletica ( LULU ), Marvell Technology ( MRVL ), Ulta Beauty ( ULTA ), and more are also set to report after the bell.

3.  Salesforce Surges as Results Beat Forecasts, Margin Hits Record

Salesforce ( CRM ) shares are up 5% in pre-market trading after the cloud software firm delivered second-quarter results that beat expectations and reported a record-high operating margin of 19.1%. The company maintained its fiscal 2025 revenue guidance of $37 billion to $38 billion, and raised its earnings per share projection by 1 cent to between $6.05 and $6.13. Salesforce also said CFO Amy Weaver is stepping down, but will stay on in the role until a successor is appointed.

4. Yelp Sues Google for Allegedly Abusing Influence in Online Search

Business review site Yelp ( YELP ) sued Alphabet's ( GOOGL ) in a San Francisco federal court, claiming the search giant uses its dominance to steer users to its own content. “Google—a multitrillion-dollar company and confirmed monopolist—abuses its unlawfully maintained dominance in general internet search to steer users to its own inferior content to pad its massive revenues,” Yelp said in the suit. The move comes weeks after a federal judge ruled that Google violated antitrust laws by maintaining an illegal monopoly in search, a ruling the tech giant is appealing . Shares of Yelp and Alphabet were little changed in pre-market trading.

5. Big Lots Plunges as Home Goods Retailer Reportedly Mulls Bankruptcy

Big Lots ( BIG ) shares are tumbling 31% in pre-market trading amid reports the furniture and home decor chain is considering a potential bankruptcy filing after years of sales declines . Citing people with knowledge of the plans, Bloomberg reported Big Lots is also seeking investors in a bid to avoid a Chapter 11 bankruptcy . The off-price retailer’s plans come as several retailers report struggling with a slowdown in spending on home goods .

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