Equity Markets Close Mixed Ahead of Nvidia Earnings

MT Newswires Live11-20 05:34

US benchmark equity indexes closed mixed Tuesday amid escalating tensions between Russia and Ukraine as traders awaited Nvidia's (NVDA) latest quarterly financial results.

The Nasdaq Composite rose 1% to 18,987.5, while the S&P 500 increased 0.4% to 5,917. The Dow Jones Industrial Average fell 0.3% to 43,268.9. Technology led the gainers among sectors, while energy and financials saw the biggest drops.

Ukraine has attacked a Russian weapons arsenal with US-made missiles, CNN reported, citing two US officials. The Biden administration recently granted permission to Ukraine to use longer-range American weapons against targets in Russia, according to the report.

The US 10-year yield fell 2.2 basis points to 4.39%, while the two-year rate was little changed at 4.28%.

Chip-making giant Nvidia is scheduled to report its fiscal third-quarter results Wednesday. Truist expects revenue to jump nearly 83% year over year. The company is likely running a "significant" backlog indicating solid demand, the brokerage said in a Tuesday note to clients.

Nvidia shares closed 4.9% higher, the top gainer on the Dow and among the best on the S&P 500 and the Nasdaq.

Super Micro Computer (SMCI) shares surged 31%, the best performer on the S&P 500 and the Nasdaq. Late Monday, the artificial intelligence server maker said that it appointed BDO USA as its independent auditor and that it had submitted a plan to the Nasdaq Stock Market requesting more time as it seeks to regain compliance with the exchange's continued listing requirements.

Walmart (WMT) raised its full-year outlook Tuesday as the retail giant reported stronger-than-expected fiscal third-quarter results amid gains across all segments. Its shares rose 3%, the second-best performer on the Dow.

Lowe's (LOW) fiscal third-quarter sales fell less than projected, while the home improvement retailer raised its full-year top-line outlook. The company's shares dropped 4.6%, among the steepest declines on the S&P 500, amid softness in do-it-yourself bigger-ticket discretionary demand in the third quarter.

Incyte (INCY) was the worst performer on the S&P 500, down 8.3%. Late Monday, the company said it will pause enrollment in the phase 2 study of MRGPRX2 in chronic spontaneous urticaria amid "certain in-vivo preclinical toxicology findings." Incyte said data from a phase 2 study into cholestatic pruritus doesn't support further development.

West Texas Intermediate crude oil rose 0.7% to $69.66 a barrel Tuesday.

In economic news, US housing starts declined more than expected last month as gains in multi-family projects were more than offset by a fall in the single-family component, government data showed.

Hurricanes Helene and Milton "dragged down" starts in the South by more than projected, though a rebound is expected as rebuilding in the areas most affected by the storms gets underway, Oxford Economics said.

Gold gained 0.8% to $2,635.50 per troy ounce, while silver rose 0.3% to $31.32 per ounce.

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