US Market Masters: Company, Govt or NVDA?
I am getting a little tired and uninspired.
Currently, almost all news stop is talking about $NVIDIA Corp(NVDA)$ and its impending Q3 2025 earnings, due Wed, 20 Nov 2024, after market closing.
It's like the old days when Steve Jobs was alive. All the news was about him, his ideas, and his new products.
Overall Tally.
On Mon, 18 Nov 2024, corporate earnings continued to be released at an unrelenting pace.
Earnings season is almost coming to an end with a big finale, expected this week.
According to Oppenheimer’s Monday notes:
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More than 90% of reports from S&P 500 companies are in.
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So far Q3 2024 profits are up +6.8% YoY, with eight of the benchmark index’s 11 sectors reporting rising earnings—on the back of 5% revenue growth.
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More than 90% of the big companies in the S&P 500 have already reported their earnings for the third quarter.
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Their profits are up by +6.8% YoY
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8 of 11 main sectors have seen their earnings increase, with revenue up by +5%.
The numbers are slightly better than FactSet’s “blended” figure.
Experts had predicted a 5.4% increase in profits and a 5.5% increase in revenue.
Corporates Earnings Say.
Some of the biggest events on the earnings calendar remain ahead:
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$Wal-Mart(WMT)$ and $Lowe's(LOW)$ are set to deliver results on Tue, 19 Nov 2024.
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$Target(TGT)$ and $TJX Companies(TJX)$ are set to deliver theirs on Wed, 20 Nov 2024.
Taken together, the results and (any) updates to the companies’ outlooks, could offer fresh perspective on the state of the consumer ahead of Black Friday.
Federal Reserves Say.
That said, with all the Fed members out socializing this week (click here ! to know who is speaking where this week), the pictures they paint could affect market sentiments.
Just last Thu, 14 Nov 2024, when Mr Powell was in Dallas to address business leaders, he said the followings that spooked US market:
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A strong US economic growth will allow policymakers to take their time in deciding (a) how far and (b) how fast to lower interest rates.
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The economy is not sending any signals that need the Fed to be in a hurry to lower rates.
UBS strategist Jonathan Golub said that big tech companies have done better than Wall Street expected in the third quarter.
Mag 7 - as of 18 Nov 2024
The Magnificent Seven stock prices had a decent run last week too, comparatively speaking: (see above)
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1 of 7 stocks had a negative -2.32% run. - Meta platform
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1 of 7 stocks had an extraordinary +35.58% trajectory that is politically motivated - Tesla.
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Remaining 5 of 7 stocks performance range from +0.81% to +8.21%.
As said, the main event will take place on Wednesday, after the bell when chip giant Nvidia is set to report its results.
Nvidia Says.
The last of the Magnificent Seven tech giants to report, Nvidia is one of the best-performing stocks in the S&P 500 this year.
Year-to-date, its stock price has gained a whooping +190.95%.
Many analysts are counting on it to deliver (a) big revenue growth and (b) illustrate the state of ongoing demand for the technology underpinning artificial intelligence.
On Sun, 17 Nov 2024 — Bank of America has noted that:
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Nvidia is the most dominant stock in the market.
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It is responsible for a fifth (or 20%) of the S&P 500's return over the past 12 months.
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The market has paused last week after the election rally.
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However, Nvidia's earnings report could determine the market's short-term direction.
On Mon, 18 Nov 2024 Nvidia's shares fell by -1.29% to end the day at $140.15 per share.
The main reason was due to report that its next-generation AI chips, Blackwell, are overheating when connected to servers.
This issue has led to design changes in the server racks.
Nvidia's CEO, Jensen Huang, has called the Blackwell chip a "game-changer."
However, some customers are concerned about the potential delays in deploying new data centers.
Nvidia has responded to allay fears, raised in the report — stating that engineering changes are normal and expected.
The company is working closely with its customers to address the overheating issue and ensure a smooth transition to the new technology.
My Thots: Honestly, I don't understand why Wall Street is making such a big deal. Overheating is a common problem with new technology, just look at iPhones, it's almost expected. (see above)
Secretly I am hoping that all these ‘concerns’ will be put to rest, the moment Nvidia’s earnings are out and blow them away, leaving room for the stock to take centrestage again!
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Do you think US market will continue to rise higher, without Nvidia’s earnings interfering?
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Do you think Nvidia’s earnings will be good enough to shut down Wall Street’s criticism ?
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