What to Expect in the Week Ahead (WMT, NIO and NVDA Earnings; US Manufacturing PMI )

$NVIDIA Corp(NVDA)$   is poised to release its Q3 2024 earnings on November 20, with expectations set high due to the company's significant growth driven by its AI chips, especially the new Blackwell GPUs. Analysts predict a substantial year-over-year revenue increase to $33.03 billion, up 82%, and earnings per share to rise by 88.11% to $0.70. The Data Center segment remains a key growth driver, anticipated to contribute $29.098 billion this quarter, showcasing a 100.48% increase from the previous year.

Investor sentiment is buoyed by Nvidia's aggressive $50 billion buyback program, indicating strong confidence in the company's valuation. Analysts have responded positively, with notable firms like Susquehanna and Raymond James upgrading their price targets based on robust demand for Nvidia's current and upcoming products. However, concerns about supply chain constraints persist, potentially limiting short-term gains despite the overwhelming demand for Nvidia's new technologies.

As Nvidia continues to dominate the AI processor market, the forthcoming earnings report will be crucial for investors to gauge the company's ability to sustain its growth trajectory and manage external challenges effectively.

As $Wal-Mart(WMT)$   prepares to release its Q3 earnings, Wall Street anticipates a 3.9% increase in earnings per share to $0.53 and a 4.2% rise in revenues to $167.55 billion. Key metrics to watch include a projected 3.6% increase in U.S. net sales, a 6.5% rise in international sales, and significant growth in membership and other income. Analysts also forecast varying growth rates in U.S. and Sam's Club comparable store sales, alongside slight expansions in store counts and net square footage. Investors and analysts alike will closely monitor these figures to gauge Walmart's market performance and strategic direction.

Macroeconomic Events

As the U.S. heads into a new political era following President-elect Donald Trump's victory, investors are closely monitoring the potential economic impacts of his proposed policies. The anticipation surrounds Trump's campaign promises which include tax cuts and tariffs that could stimulate domestic economic growth but may also exacerbate inflation and disrupt markets. With the inauguration looming, the market, which surged post-election, has seen a pullback, reflecting investor uncertainty about the future economic landscape under Trump's administration. Concerns are primarily focused on how these policies will translate into actual economic outcomes, with a particular emphasis on trade and fiscal policies that could significantly impact both domestic and global economic dynamics.

Adding to the economic uncertainty are concerns about interest rates, which remain high. Investors are wary about the Federal Reserve's future moves, especially with recent economic signals suggesting that reducing inflation to the Fed's target might be more arduous than anticipated. Trump's aggressive stance on trade, including threats of substantial tariffs on imported goods, poses a risk of igniting a global trade war, potentially reversing the deflationary trend in core commodity prices. Market expectations are adjusting, with fewer anticipated rate cuts by the end of 2025, which could exert additional pressure on the bond market and equity valuations, signaling a potentially bumpier economic road ahead as policies unfold.

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