The DOW JONES index rose 500 points, 1.08%, to 46,638.78 points. NVIDIA is the most bullish value, with a revaluation of 3.4%, while Walmart is up 3.33%. On the decline side, Verizon lost 0.29% and Coca-Cola fell just 0.24%.
The S&P 500 advanced 1.47% to 6,740.00 points, while the Nasdaq rose 2.03% to 23,022.13 points.
Wall Street comes from a slightly positive day yesterday, which served to stop the bleeding of the last week: the DOW JONES managed to rise 0.10% at the close, while the S&P 500 advanced 0.38% and the Nasdaq rose 0.59%.
The big protagonist of the day is NVIDIA, which registers increases of 4.8% in the pre-opening after presenting better-than-expected results last night and solid forecasts also for the fourth quarter. The most valuable company in the world achieved earnings per share of $1.30, above the consensus estimate of $1.25, with record revenues of $57.01 billion, compared to the $54.92 billion estimated. They also represent an increase of more than 62% over the 35.1 billion revenues registered in the same period of the previous year.
For its fourth fiscal quarter, NVIDIA predicts revenue of $65 billionalso above the 61.6 billion that analysts had calculated. These results today seem to restore faith to investors in semiconductor values and in general to all those linked to artificial intelligence, with the shares of companies such as Broadcom or Advanced Micro Devices moving with strong increases.
“NVIDIA’s numbers remain extremely strong, but questions inevitably arise about whether Huang’s company has already reached its full potential in terms of growth and market share,” warns, however, David Russell, global director of market strategy at TradeStation.
In the macroeconomic section, the great reference of the day is the nonfarm payrolls report and the unemployment rate for September. The Department of Labor has indicated that 119,000 jobs were created in September compared to a destruction of 4,000 jobs the previous month. Economists had predicted the creation of 50,000 jobs. The unemployment rate rose to 4.4%, compared to the expected 4.3%, while average hourly wages rose 0.2%, compared to the expected 0.3% increase.
This report should have been released the first week of October, but was delayed by the federal government shutdown. The Department of Labor yesterday confirmed that the October report will not be released and that the little data collected in the November report will be integrated.
This will complicate the work of the Federal Reserve ahead of its meeting on December 10, and investors will increasingly distance the probability of another rate cut. Operators see a 39.8% chance of a rate cut of 25 points, according to the CME Group’s Fedwatch tool, while 60.2% of bets are on rates remaining in the current range, between 3.75% and 4.00%. The thesis is reinforced by the Fed minutes published yesterday, which show that some FOMC members who voted in favor of cutting the rate “could have supported maintaining the level of the target range.”
Today they also met the weekly figures for initial applications for unemployment benefits, which stood at 220,000, below expectations. Economists had expected claims to be at 230,000. The four-week moving average of new claims, which is considered a more reliable indication of labor market trends as it reduces spikes in volatility, rose to 224,250.
On the other hand, the Philadelphia Federal Reserve index, which measures activity in the US Mid-Atlantic region, rose to -1.7 in November.
Returning to the stock’s leading values, today Walmart, a retail giant that for a long time was considered an authentic measure of household consumption in the US, presented its results. The company announced adjusted earnings of 62 cents per share, above the 60 cents expected by analysts, while revenue reached $179.5 billion, compared to the $177.43 billion expected.
The retailer has raised its sales and profit forecasts for the year: Expects full-year net sales to rise between 4.8% and 5.1%, up from its previous forecasts of between 3.75% and 4.75%. It also expects its adjusted earnings per share to be between $2.58 and $2.63, a slight increase from the previous range of $2.52 and $2.62. This is the second consecutive quarter in which Walmart revised its full-year forecast upward.
The company has also announced that will transfer the listing of its common shares to the Nasdaqbeginning trading there on December 9. They are currently listed on the New York Stock Exchange (NYSE). They will keep the same ticker, ‘WMT’.
Bath&Body Works plummets 25% after reporting disappointing third-quarter results: Adjusted earnings of 35 cents per share missed the 39 cents per share expected by analysts, while revenue of $1.59 billion also fell short of the consensus estimate of $1.63 billion.
Palo Alto Networks falls 1% despite slightly exceeding Wall Street expectations with its fiscal first quarter accounts. However, Palo Alto’s forecast for the second quarter was somewhat disappointing, as The company expects revenue of between $2.57 billion and $2.59 billionwhile analysts had predicted $2.58 billion.
In raw materials markets, oil prices rise following the previous session’s decline, caused by concerns that US pressure to end the war between Russia and Ukraine could add supply to a well-supplied market, a fear that is offset by a larger-than-expected reduction in US crude reserves. US West Texas futures rose 0.59% to $59.60 per barrel, while international benchmark Brent oil rose 0.61% to $63.90.
The euro rose 0.02% against the dollar, leaving the exchange rate at 1.1542 dollars for each single currency.
In fixed income, today the yield on the US ten-year debt bond rises to 4.147% given lower expectations of rate cuts. The two-year bond pays 3.615%.