The DOW JONES, which rose 0.13% at the opening, turns around and falls 0.26% in the New York morning to reach 43,158 points. The S&P 500 lost 0.76% to 5,872 points. The NASDAQ fell 1.13% to 18,776 points.
The major New York indices come from a mixed close yesterday, Tuesday: the DOW JONES closed lower for the fourth consecutive day, losing 0.28%, while the S&P 500 rose 0.40% and the NASDAQ advanced 1.04%.
All eyes are on NVIDIA today, which will release its quarterly results after the close of the regular session. The company has maintained a strong track record of exceeding expectations, beating earnings estimates for the last seven consecutive quarters. This performance has been largely driven by unprecedented demand for AI chips, particularly in the data center market. In that sense, investors will be especially attentive to the demand for new generation Blackwell chips.
On average, analysts expect earnings per share of $0.74 per share on revenue of $32.95 billion. In the previous quarter, the semiconductor giant earned $0.67 per share, compared to market expectations of $0.64.
The semiconductor giant’s performance, given its $3.6 trillion market capitalization, could set the tone for the S&P 500 and Nasdaq Composite for the rest of the week. But it also recently entered the DOW JONES, so it will also have an impact on the exclusive index.
“Expectations are high and the market will enter NVIDIA’s earnings announcement with a long position, looking to beat expectations for the fifth consecutive quarter,” explains Tony Sycamore, market analyst at IG. “Given NVIDIA’s significant impact, its performance will undoubtedly boost sentiment in the technology sector and the broader market towards the end of the year.”
At the moment, while awaiting the accounts, investors undo positions in the company, with NVIDIA shares falling 2.27% in the New York morning.
Among the companies that have already presented their accounts, the retailer Target sinks 17% after not only disappoint with its report but also cut forecasts for the year just three months after having improved them.
The company expects full-year adjusted earnings to range from $8.30 to $8.90 per share. It is well below the range between $9 and $9.70 per share that it shared in August and the $9.55 expected by analysts. For the quarter, Target earned $1.85 per share on revenue of $25.67 billion. Analysts had forecast $2.30 and $25.9 billion, respectively.
The electrical equipment manufacturer Powell Industries plummets 14% at the market opening. Net new orders for fiscal 2024 amounted to $1.1 billion, compared to $1.4 billion in the same period a year ago. The company noted that the decline was largely due to Powell’s inclusion of three large megaprojects in the oil and gas and petrochemical sectors in fiscal 2023.
Aside from the results season, today one of the protagonists of the stock market is Comcast, despite the fact that it registers increases of less than 1% in the New York morning. The telecommunications giant has announced that it plans to spin off some cable television networks from NBCUniversal, as the rise of streaming prompts the media company to give up some of its most prized assets.
The company will spin off its news and entertainment channels, including MSNBC, CNBC, USA, Oxygen, E!, Syfy and Golf Channel. However, it will keep NBC along with some streaming properties, its film and television studios and theme parks, as well as its Peacock streaming service.
Netflix opens with increases of less than a percentage point after announcing that Last week’s boxing match between former heavyweight champion Mike Tyson and influencer Jake Paul attracted 108 million viewers around the world, making it the most broadcast global sporting event in history.
Regarding analyst recommendations, the casino and hotel operator Gaming & Leisure Properties offers investors attractive returns with limited headwinds, according to Deutsche Bank. Analyst Carlo Santarelli updates his advice from ‘hold’ to ‘buy’. Raising the price target to $54 per share, from the previous $49, which implies an 8% upside potential since closing on Tuesday.
Also good news for the pet supply chain Chewy, which sees as Bank of America The advice improves two notches, from ‘underweight’ to ‘comprar‘. It also raises the target price, which goes from $24 to $40 per share, with a 21.4% upside potential about Tuesday’s closing.
Cryptocurrency-linked values point to a positive opening after Bitcoin has reached a new record, rising above $94,000. Microstrategy registers increases of more than 6.5% in the early stages of trading.
Bond, oil and currency markets
In a day with hardly any notable macroeconomic references, investors are also scrutinizing the appointments of US President-elect Donald Trump to his cabinet in search of clues about future political positions. Among this, it is expected that the designation for the new Secretary of the Treasury will be known soon. Yesterday it was learned that Trump will nominate Cantor Fitzgerald CEO Howard Lutnick to lead his trade and tariff strategy as head of the Commerce Department.
The other focus is on the geopolitical tension due to the war between Russia and Ukraine, although it seems that there is some calm after the agency Reuters has published that Russian President Vladimir Putin is open to discussing a Ukraine ceasefire deal with Donald Trump.
In that sense, investors seem to abandon the refuge of bonds, with US ten-year bond yield rising to 4.423%. The two-year bond pays 4.310%. In fixed income, returns move inversely to prices.
In raw materials markets, oil prices rise for a third day, as traders weigh growing geopolitical risks against signs of rising inventories in the US, the largest consumer.
European benchmark Brent oil rose 0.71% to $73.83 per barrel, while US West Texas futures rose 0.87% to $69.84 per barrel.
The euro fell 0.28% against the dollar to reach a cross of 1.0535 dollars for each single currency.