Stocks opened lower Thursday after the minutes from the Federal Reserve's July meeting indicated the central bank could begin tapering stimulus this year even as the economic impact of the delta variant of the coronavirus remains unknown. Jim Cramer, however, was quick to remind investors that the Fed is far from the only catalyst impacting U.S. markets.
The Dow Jones Industrial Average was down 233.25 points, the Nasdaq Composite was down 85.92 points and the S&P 500 was down 28.29 points at the open.
Jim Cramer and Action Alerts PLUS senior analyst Jeff Marks discussed earnings from Nvidia (NVDA) - Get NVIDIA Corporation Report and Robinhood (HOOD) - Get Robinhood Report as well as the latest news out of Facebook (FB) - Get Facebook, Inc. Class A Report amid Thursday's market selloff.
Watch the full interview in the video below:
Cramer's favorite dog exceeded earnings estimates and issued an upbeat guidance for the the upcoming quarter.
Nvidia reported adjusted earnings per share of 94 cents on revenue of $6.51 billion.
Nvidia said it expects third quarter revenue of $6.66 billion to $6.94 billion, higher than analysts' forecasts of $6.57 billion.
Despite scrutiny in several countries, Nvidia also expressed confidence in its acquisition of Arm Holdings. "Regulators should recognize the benefits of the acquisition to Arm, its licensees, and the industry," Nvidia said in the earnings release.
As of the open of trading, the stock was up 1.78% to $193.79.
Nvidia is a holding in Jim Cramer's Action Alerts PLUS charitable portfolio.
Despite reporting that revenue more than doubled in its first quarter as a public company, Robinhood plunged after warning that trading is slowing.
The trading app reported a second-quarter loss of $502 million, or $2.16 a share on revenue of $565 million. Crypto transactions in the quarter attributed $233 million to the total revenue.
In Wednesday's AAP Daily Rundown, Cramer told senior analyst Jeff Marks that Robinhood could become the barometer of whether investors like the market or not.
So what should you expect from the third quarter? Robinhood said "seasonal headwinds and lower trading activity across the industry to result in lower revenues and considerably fewer new funded accounts than in the prior quarter."
As of the open of trading, the stock was down 7.05% to $46.29.
Facebook revealed its Horizon Workrooms, a virtual reality powered experience aimed at allowing better collaboration among remote work forces.
"The way we work is changing. More people are working remotely, more people want flexible work options, and more people are re-thinking what it means to be in an office," Facebook said in a statement.
The reveal followed CEO Mark Zuckerberg's touting of the metaverse as a key part of the future of Facebook.
Facebook is a holding in Jim Cramer's Action Alerts PLUS charitable portfolio.
Hear what Jim Cramer is only telling members of his Action Alerts PLUS investing club in Thursday's Daily Rundown.