The DOW JONES index rises 0.08% to 46,129.06 points. Sherwin-Williams is the most bullish value, with a rise of 1.61%, while NVIDIA advances 1.27% awaiting its accounts. On the negative side, Chevron fell 1.54% and Boeing fell 1.25%.
The S&P 500 advanced 0.17% to 6,628.54 points, while the Nasdaq rose 0.22% to 22,482.83 points.
Wall Street is coming off a bearish day again yesterday, Tuesday, with he DOW JONES closing with a drop of 1.07% in its fourth consecutive day in the redthose that have elapsed since on Wednesday of last week it set historical highs, exceeding 48,000 points for the first time. The S&P 500 has also accumulated four days of decline, registering its worst downward streak since August. The technological Nasdaqwhich has fallen on five of the last six days, lost 1.21%.
Although most sectors of the general market closed higher on Tuesday, the main technology companies once again weighed on the market, with AI companies such as NVIDIA, Palantir and Microsoft closing in the red due to fears about the high valuations of the sector and the capital investments that the companies are making.
“Technology has been a strong performer this year, so the volatility is not surprising,” reflects Sonu Varghese, global macro strategist at Carson Group. “Volatility among technology stocks is also driven by the fact that there is a large concentration risk, both at the level of indices and even in investors’ portfolios,” he adds. “Despite the great profits, Investors with concentrated portfolios that are primarily exposed to AI-related stocks remain nervous and are susceptible to any setback. “The dynamic is probably getting worse because many investors are trying to diversify at the same time that stocks are falling.”
All eyes are on NVIDIA, which will present the results of its fiscal third quarter of 2026 this Wednesday after the close of regular business. The company has accustomed the market to exceeding its expectations, but on this occasion its report will be looked at in detail in light of the aforementioned doubts that have arisen in recent days about the high valuations of technological stocks linked to artificial intelligence. In fact, with yesterday’s declines, its shares are 12% below their latest highs.
Waiting for the report, Analysts forecast adjusted earnings per share (EPS) of $1.26 on revenue of $55.2 billionaccording to Bloomberg consensus data. This would represent an increase of 55% and 57%, respectively, compared to the $0.81 per share and $35.1 billion that NVIDIA recorded in the same period last year. Of that $55.2 billion in revenue, $49.3 billion is expected to come from NVIDIA’s data center business. The video game sector is expected to generate $4.4 billion.
The retail sector is the other major protagonist this week in the quarterly results season.
Early today Lowe’s presented its accounts, which reduces its profit forecast for the year due to the adverse economic environment. The home improvement store chain now expects total annual sales of $86 billion, up from its previous forecast of $84.5 billion to $85.5 billion, due to a recent acquisition. However, it expects comparable sales to remain flat year-over-year, compared to the previous range of up to 1% growth. For the entire year, It now expects adjusted earnings per share of about $12.25, at the lower end of its previous range of $12.20 to $12.45..
Lowe’s reported adjusted earnings per share of $3.06 on revenue of $20.81 billion, compared to forecasts of $2.97 per share in earnings and $20.82 billion in revenue. Despite the cut in forecasts, Lowe’s report is well received by the market, with increases of 4.30% for the company’s shares.
Target also reduces its profit forecast for the year. The retailer expects adjusted earnings per share for the year to be between $7 and $8reducing the upper limit of its previous range of between $7 and $9. The company maintains its sales forecast for the crucial holiday season, indicating it expects a single-digit decline in the fourth quarter.
In the quarter ended November 1, the retailer achieved adjusted earnings per share of $1.78 and revenue of $25.27 billion. Analysts had expected $1.72 per share in earnings and $25.32 billion in revenue. Target shares fell more than 3.2% in New York morning.
Tjx Companies registers advances of 3.20% after presenting lower-than-expected results in the third quarter. The outlet chain registered adjusted earnings per share of $1.28, versus $1.23 expected by analysts. Revenue rose 7% to $15.1 billion, versus the expected $14.84 billion. Comparable store sales increased 5%. TJX’s full-year comparable sales growth forecast is 4%.
Outside the results, Constellation Energy shares rise 2% after the US government announced it will support the company with a federal loan. Specifically, Energy Department officials reported Tuesday that Trump administration to provide Constellation Energy with $1 billion loan to restart the Crane Clean Energy Center nuclear power plant in Pennsylvania. The plant is expected to begin generating power again in 2027.
Constellation unveiled plans to restart the reactor in September 2024 through a power purchase agreement with Microsoft to meet the tech company’s data center demand in the region. The loan would cover most of the project’s estimated cost of $1.6 billion.
The macroeconomic agenda for this Wednesday remains scarce, although it has been known the August trade balance, which showed a deficit of $59.6 billion. Furthermore, this afternoon investors will learn the minutes of the last monetary policy meeting of the Federal Reservein which the institution reduced interest rates by 25 percentage points. The market will be attentive to any clue it may find about the meeting on December 10. If just a few weeks ago operators gave a 90% probability of another 25-point cut, today the expectations that it will occur are 48.6%, according to the CME Group’s Fedwatch tool.
In fixed income, always very sensitive to changes in monetary policy, the ten-year US bond offers a return of 4.103%.
In raw materials markets, oil prices fallafter an industry report showed an increase in crude oil reserves in the US, the world’s largest consumer, reinforcing concerns about excess supply, although the fall in prices is limited by sanctions on the flow of Russian oil. West Texas oil futures fell 2.80% to $58.97 per barrel, while international benchmark Brent oil fell 2.64% to $63.18.
The euro rose 0.01% against the dollar, leaving the exchange rate at 1.1583 dollars for each single currency.
Bitcoin marks $91,092 after yesterday falling slightly below the $90,000 threshold. The popular cryptocurrency has fallen almost 30% from its highs.