19 Nov Market Gave Mixed Performance While Await Nvidia Earnings

On Tuesday (19 Nov) stock market gave a mixed performance as investor sentiment was affected by the geopolitical tensions while investors also try to comprehend earnings reports from major retailers and await Nvidia’s earnings results today (20 Nov 2024).

S&P 500 and NASDAQ gained 0.40% and 1.04% respectively after rebounding from early session losses while DJIA dropped 0.28% to end lower for fourth straight day.

As market recovers some losses from last week, S&P 500 and NASDAQ have risen for two straight days. Last week was the worst week for U.S. stock in two months after the big post-election rally ended.

Market participants was affected by the reports in the early session that Ukraine fired U.S.-supplied missiles into Russia, as well as news that Russian President Vladimir Putin signed a revised nuclear doctrine that lowers the threshold for using nuclear weapons.

S&P 500 Information Technology and Communication Services Up More Than 1%

The S&P 500 Information Technology sector managed to gain 1.22% thanks to the jump of 4.89% of Nvidia (NVDA) shares as it is the AI investors favorite which will be reporting earnings after market close today (20 Nov). Nvidia had recovered from losses the previous session and once again surpassed Apple (AAPL) as the world's most valuable company by market capitalization.

Other mega-cap stocks were higher across the board, with Apple, Microsoft (MSFT), Tesla (TSLA), $Amazon.com(AMZN)$ helped the consumer discretionary sector to gain 0.42%.

$Alphabet(GOOGL)$ and Meta Platforms (META) gaining ground to help the communication services with 1.03% gain.

Holding Positions On GOOGL and AMZN Paid Off

As I have shared in my article yesterday on Nvidia and Alphabet are collaborating on quantum AI processors, with Nvidia's stock dropping 1.6% while Google's rose 1.3%. The partnership utilizes Nvidia's Eos supercomputer and Google's Quantum AI to advance quantum computing, emphasizing GPU-accelerated simulations' role in this technological leap.

This has indeed helped GOOGL to move as NVDA continue to move higher, as we anticipate NVDA earnings today after marker close. Do look out for some opportunity.

For Amazon, as there will be some technology stocks reporting today (20 Nov) like SnowFlake, they are hosting their software on AWS where customer purchase it, as AMZN should be able to benefit if SNOW earnings comes in positive and better-than-expected on 20 Nov after market close.

Significant Stocks Move To Note

Among the stocks making move yesterday (19 Nov), Walmart (WMT) shares rose 3% and hit a new all-time high after the world's largest retailer reported quarterly results that topped analysts' expectations and raised its outlook.

But shares of Lowe's (LOW) fell 4.6% after the home improvement retailer reported better-than-expected results but cited "continued softness" in big-ticket discretionary spending.

Super Micro Computer (SMCI) was the biggest gainer on the S&P 500 and Nasdaq, rising 31% after the beleaguered server maker and Nvidia partner named a new auditor and filed a compliance plan to avoid delisting by the Nasdaq.

Crypto Stock MicroStrategy Performance

Bitcoin, for its part, was at around $92,000 after hitting a record high of just above $94,000 this afternoon. The cryptocurrency has soared about 35% since the election amid hopes that the Trump White House and a crypto-friendly Congress will implement policies that benefit the asset class.

MicroStrategy (MSTR) jumped 12% following news the software analytics company had purchased an additional $4.6 billion in Bitcoin.

Note Yield Ended Lower

The 10-year treasury yield was down six basis point to end lower at 4.397% from 4.41% on Monday (18 Nov). The yield on 10-year Treasurys, which has risen in recent weeks as investors have scaled back their expectations about how aggressive the Federal Reserve will be in cutting rates in the months ahead.

The 2-year treasury yield was down two basis points to close at 4.289% on Tuesday (19 Nov),

Stocks To Watch

$NVIDIA Corp(NVDA)$ shares climbed Tuesday, a day ahead of the company’s highly anticipated third-quarter earnings release, as analysts grow more bullish on the chipmaker's prospects.

Projections for Nvidia's results have ticked higher in the days ahead of the report, with analysts now expecting third-quarter revenue to grow 84% year-over-year to $33.29 billion, driven by record sales from Nvidia's data center segment, according to estimates compiled by Visible Alpha.

Technical is showing strong upward from MTF and we are seeing NVDA trading higher away from short-term and long-term MA, and we are seeing MACD making an upside move towards a bullish MACD crossover.

So if this goes well and NVDA earnings comes in stronger-than-expected, we could see NVDA cross $149 and suge higher.

I am holding onto NVDA as I see there will be more opportunities especially when NVDA CEO mentioned that they will be doing software as well, I believe the AI development moving forward will be a combination of hardware and software, no more silo.

$Wal-Mart(WMT)$ reported quarterly results that topped analysts' expectations and raised its outlook and now expects full-year revenue to rise 4.8% to 5.1% from last year’s levels, marking a third upgrade to its outlook since February. (The implied sales number is a bit below the consensus, though the midpoint of its new range for adjusted earnings per share indicates optimism about net-profit growth.)

We saw only a small increase after WMT release its result but MTF is giving strong uptrend with MACD making a bullish crossover, we should be able to see a higher stock price move from WMT today (20 Nov).

$MicroStrategy(MSTR)$ shares surged to fresh record highs Tuesday after soaring yesterday following news the software analytics company had purchased an additional $4.6 billion of bitcoin

Summary

I am expecting market to be trading in a mixed mode before the earnings from NVDA and some other tech stocks like SNOW came after market close. There should be some movement on complement tech stocks like Amazon, Google and Microsoft.

I am looking for buying activities to see how investors feel towards the geopolitical tensions concerns and also opportunities that investors can seize.

Appreciate if you could share your thoughts in the comment section whether you think market would see another mixed trading while major earnings result unfold.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.