NVIDIA announces earnings after the market closes today
“It is more important than the December FOMC meeting in the direction of the stock market at the end of the year.”
Ford cuts 4,000 jobs in Europe due to electric vehicle chasm
The three major indices of the New York stock market are showing mixed trends in the early trading range on the 20th (local time). Although geopolitical tensions increased due to Ukraine’s missile attack on the Russian mainland the previous day, investors appear to be watching the market, paying attention to Nvidia’s performance, which will be released after the market closes today.
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As of 9:32 a.m. on this day in the New York stock market, the Dow average, centered on blue chips, was recording 43,332.65, up 0.15% from the previous trading day. The S&P 500 index, centered on large-cap stocks, is trading at 5,915.13, down 0.03%, and the Nasdaq index, centered on technology stocks, is trading at 18,964.2, down 0.12%.
Investors’ attention is focused on Nvidia’s earnings announcement. NVIDIA’s earnings announcement could determine the main direction of the stock market this week and through the rest of the year. If NVIDIA presents performance and forecasts that exceed expectations, it is expected to create an opportunity for a rebound in the stock market where the ‘Trump rally’ has subsided. Barclays believes that Nvidia’s performance will be a more important catalyst for the year-end stock market than the U.S. Federal Reserve’s (Fed) interest rate decision next month. Wall Street is especially watching the demand outlook for Blackwell, Nvidia’s latest artificial intelligence (AI) chip.
“Like most investors, we will be closely watching Nvidia’s earnings report today for clues as to how spending on AI will bounce back,” said Chris Senek, strategist at Wolf Research. “We see the risk of delaying or even reversing the year-end surge in stock prices if negative news or disappointing spending trends are confirmed,” he added.
Fed members are also scheduled to make remarks on this day. Fed Director Lisa Cook, Fed Director Michelle Bowman, and Boston Federal Reserve President Susan Collins will give speeches. Following Fed Chairman Jerome Powell’s statement on the 14th that there is no need to rush to cut interest rates because the U.S. economy is strong, attention is being paid to whether Fed members will make similar statements.
Currently, market expectations of an interest rate cut are somewhat low. According to FedWatch of the Chicago Mercantile Exchange (CME), the federal funds interest rate futures market today reflects a 59.1% possibility that the Fed will cut interest rates by 0.25 percentage points at the Federal Open Market Committee (FOMC) regular meeting in December. It fell from 82.5% a week ago. The likelihood of interest rates being frozen next month rose from 17.5% a week ago to 40.9% today.
By stock, retail target is falling 18.03% due to disappointing performance announcements and lowered annual performance forecasts. Comcast, a global media company, is down 0.4% after announcing plans to spin off MSNBC and CNBC. The spin-off of the two companies is expected to take about a year. NVIDIA, which announces its earnings after the market closes today, is down 1.33%. Ford, which announced it would lay off an additional 4,000 employees in Europe, is cutting its workforce by 0.68%.
Government bond yields, which fell the day before due to demand for safe assets due to Ukraine’s launch of a missile against Russia, are on the rise today. The interest rate on U.S. 10-year Treasury bonds, a global bond interest rate benchmark, is trading at 4.42%, up 4bp (1bp = 0.01% point) from the previous day, and the interest rate on U.S. 2-year Treasury bonds, which are sensitive to monetary policy, is trading at 4.31%, up 3bp from the previous day.
International oil prices are rising due to heightened tensions between Russia and Ukraine. West Texas Intermediate (WTI) is trading at $69.91 per barrel, up $0.67 (0.97%) from the previous trading day, and Brent crude oil, the global crude oil price benchmark, is trading at $73.81 per barrel, up $0.5 (0.68%) from the previous trading day.
New York = Correspondent Haeyoung Kwon [email protected]
2) What are the potential market reactions if Nvidia’s earnings report does not align with analyst expectations, and how might this impact other tech stocks?
1) As mentioned in the article, investors are closely watching Nvidia’s earnings announcement today. Can you share your thoughts on how significant this event is for the stock market and why it is considered more important than the Federal Reserve’s interest rate decision next month?
2) What are the major expectations from the market regarding Nvidia’s performance and what could be the potential consequences if the company fails to meet or exceed these expectations?
3) In light of the recent layoffs announced by Ford in Europe due to the shift towards electric vehicles, how do you see this trend affecting the auto industry in general and what steps are necessary for companies to adapt to this change?
4) With the ongoing geopolitical tensions between Russia and Ukraine, there has been an increase in demand for safe assets leading to a decline in government bond yields. How do you foresee these trends continuing in the near future?
5) The article mentions that the three major indices of the New York stock market are showing mixed trends. Could you provide some insights into what factors are contributing to these mixed signals, and how do you expect the market to perform in the upcoming weeks?
