S&P 500 and Nasdaq indices profit from their highs in anticipation of NVIDIA

DOW JONES index futures lost 0.18% to 39,802 and S&P 500 futures fell 0.15% to 5,313. NASDAQ 100 futures fell 0.02% to 18,709.

Yesterday, Tuesday, Wall Street ended a moderately bullish session. The S&P 500 and Nasdaq indices rose 0.25% and 0.22%, respectively, closing at new all-time highs.. The Dow Jones index rose 0.17%, although it remained below the 40,000 threshold reached last week.

All eyes today are on NVIDIA, which will publish its results after the close of the next session in what is undoubtedly the most anticipated quarterly report of the season. The market is forecasting impressive triple-digit growth in both profit and results as the company experienced increased demand for its chips amid the artificial intelligence boom.

In particular, analysts expect that Adjusted earnings per share were $5.65 on revenue of $24.69 billion.This is evidenced by data collected by Bloomberg. During the same quarter last year, the company reported adjusted earnings per share of $1.09 and revenue of $7.19 billion.

NVIDIA stock has been on a tear over the past year, rising more than 90% in 2024. almost 700% from October 2022 market lows.. Yesterday they set new all-time highs.

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“Despite the stock’s incredible recent performance, there is tension in the market and investors are looking to see if NVIDIA’s impressive momentum from 2023 will extend into early 2024,” explains Sam North, an analyst at investment platform eToro. “We have to keep in mind that the bar is quite high and another double-digit increase and exceeding may be a challenge.”

Early in the morning in New York, Target’s results became known, which missed profit expectations for the first time since November 2022. Earnings per share were $2.03, compared with expectations of $2.06, and revenue was $24.53 billion, slightly above expectations of $24.52 billion.

Target is maintaining its full-year guidance, saying it expects comparable sales growth to range from flat to 2% and adjusted earnings per share to range from $8.60 to $9.60. Its shares fell more than 8%..

Analog Devices shares rose more than 6% in premarket trading after beating analysts’ estimates with adjusted earnings of $1.40 per share on revenue of $2.16 billion. Analysts had forecast earnings of $1.26 and revenue of $2.11 billion. .

Yesterday, after the close of the regular session, Urban Outfitters presented its reports, which rose by 8% on the eve of the opening. The textile company reported adjusted earnings of 69 cents per share on revenue of $1.2 billion in the first quarter. The figures were well above analysts’ expectations of earnings of 52 cents per share and revenue of $1.18 billion.

More modest, about 1%, growth at Toll Brothers. The homebuilder reported fiscal second-quarter earnings of $4.55 per share and revenue of $2.65 billion. Analysts had forecast earnings of $4.14 per share and revenue of $2.53 billion.

Outside of earnings season, pharmaceutical company Biogen is joining efforts to develop drugs for immune and inflammatory diseases with a new acquisition. The company will acquire Human Immunology Biosciences, or Hi-Bio, for $1.15 billion, which could add up to $650 million in additional payments if certain targets are achieved.

In terms of analyst recommendations, Goldman Sachs is upping Shopify’s Buy rating from its previous Neutral rating. The US firm believes the company is at an attractive entry point after a difficult year.

Investors will learn about the macroeconomic agenda today soon after the opening of sales of secondary housing in April, although the main reference point will be the publication Minutes of the latest Federal Open Market Committee (FOMC) monetary policy meeting..

Investors will be looking to the text for clues about future rate moves after Federal Reserve Chairman Christopher Waller confirmed yesterday that the Fed would have to see the downward trend in inflation consolidate for months on end before cutting rates, although he acknowledged that it is necessary. there is no point in cutting rates once and waiting six months to do it again.

The fixed income sector is always very sensitive to expectations regarding monetary policy. US 10-year bonds offer a yield of 4.441%., an increase of three points. Two-year bonds offer a yield of 4.863%.

In commodity markets, oil prices fell for the third day in a row due to doubts about US demand being generated under the current rate scenario. US West Texas crude futures fell 0.43% to $78.31 a barrel, while European benchmark Brent fell 0.41% to $82.54.

The euro fell 0.24% against the dollar, leaving the exchange rate at $1.0829 for each community currency.

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