Fast Money Blog- 5/7/24

It was a wild week on Wall Street if you sipped the data and stock performance “cocktail.” Here’s what I mean: at the moment, stocks are no longer accelerating solely on fundamentals, rather the stocks market as a whole, is being driven by monthly economic data. 

On Thursday, June 6th, jobless claims rose to a four-week high, as the Labor Department reported its weekly unemployment claims. For the week ending June 1st, first-time unemployment rose 8,000 since the week prior, for a total of 229,000. 

However on Friday, June 7th, data from Bureau of Labor Statistics showed strong job growth as the labor market added 272,000 jobs in May.

Ultimately, as a result of the slightly larger unemployment numbers, the stock market reacted positively. 

What does this mean for you?

I think your fast money trades will now take longer as Wall Street is reacting more to weekly government data. Because of this, 3 to 4 week covered calls are your best trades.

The other big story on Wall Street this week was the Nvidia Corporation (NVDA) 10-for-1 stock split, which happened today, June 7th, after the market closes. NVDA will begin trading on a split-adjusted basis this Monday, June 10th.

As discussed in last week’s Fast Money Blog, Nvidia released outstanding Q1 2025 earnings with top-line revenue of $26 billion, up 262% from a year ago.  

What makes Nvidia so special?

Since it’s inception Nvidia specialized in producing a special kind of programmable computer chip, called GPUs or graphics processing units. GPUs, unlike the more basic CPUs produced at the time (by companies such as Intel and Advanced Micro Devices) are better able to produce images, and were initially associated with video and computer games. 

However, as it turned out, these GPUs were able to perform in a way that regular CPUs couldn’t, making them more energy efficient and better able to deal with more sophisticated computer demands, such as those found in cloud-based computing and in gaming, professional visualization, and automotive markets. 

Over the past few years, the majority of Nvidia’s business and revenue, has come from its data center solutions, which manage the computing demands of AI. 

To put it simply, by designing industry-leading GPUs, Nvidia was ahead of the game, and is now the leader of the AI revolution and extremely valuable to those companies those success depends on power of AI. 

Nvidia stock is clearly the “prettiest girl in the room” on Wall Street. 

The next 90 days will be very exciting with some major moves coming in the U.S. stock market. It’s your responsibility to make certain that you do not disproportionally trade and invest in tech stocks. 

Stay smart, stay open!

The best is yet to come. 

Tyrone Jackson, The Wealthy Investor