Wall Street is expected to remain cautious until Nvidia Corp’s (NVDA) earnings are released, as the tech giant’s performance is seen as a key indicator for the overall market. Index futures are showing minimal movement in early Wednesday trading, suggesting a lack of major catalysts. While the market could trade sideways, the retail sector is anticipated to see some strength, buoyed by Nordstrom, Inc.’s (JWN) positive earnings. Furthermore, positive results from other technology companies could bolster investor sentiment in that sector.
Market strategist Ed Yardeni, in Yardeni Research’s weekly preview, highlighted the significance of Nvidia’s earnings, stating that they are heavily influenced by AI investments made by other large-cap tech companies. Yardeni described Nvidia as the “fulcrum” of not only the AI trade but also a significant portion of the entire stock market rally, adding, “Nvidia’s earnings will begin to be supported by rising demand from other tech and many non-tech companies in the S&P 493.”
In premarket trading on Wednesday, the SPDR S&P 500 ETF Trust (SPY) rose 0.08% to $562, and the Invesco QQQ ETF (QQQ) gained 0.11% to $477.28, according to Benzinga Pro data.
On Tuesday, U.S. stocks traded back and forth around the unchanged line before closing higher, with technology stocks leading the charge. Following a negative start, the indices recovered after a report revealed that consumer confidence had reached its highest level since February, driven by improved inflation expectations. While the averages traded in a listless manner, they maintained enough momentum to close in the green.
The Dow Industrials set a new closing high, although it failed to break through its intraday high. The S&P 500 edged closer to its record close of 5,667.20, reached on July 16, while small-caps declined for a second consecutive session after their recent surge.
Fund manager Louis Navellier anticipates a market rally through the presidential election, stating, “Historically, the stock market rallies into Presidential Election Day since the candidates are promising voters everything and anything.” He added that popular promises include “no taxes on tips and social security benefits, as are larger child tax credits, plus aid for first-time homeowners.”
Key economic data releases scheduled for Wednesday include:
* The Energy Information Administration’s weekly petroleum status report at 10:30 a.m. EDT.
* A speech by Atlanta Fed President Raphael Bostic at 6 p.m. EDT.
* A five-year note auction by the Treasury at 1 p.m. EDT.
Notable stocks moving on earnings include:
* Nordstrom (JWN), up approximately 8% in premarket trading following the company’s quarterly results.
* Ambarella, Inc. (AMBA), up over 23% on earnings.
* Box, Inc. (BOX), up over 7.50% on earnings.
* nCino, Inc. (NCNO), down over 12.5% on earnings.
* PVH Corp. (PVH), down over 8% on earnings.
* Semtech Corporation (SMTC), up over 4% on earnings.
* SentinelOne, Inc. (S), up over 2% on earnings.
Other companies reporting earnings ahead of the market open include:
* Abercrombie & Fitch Co. (ANF)
* Chewy, Inc. (CHWY)
* Foot Locker, Inc. (FL)
* J.M. Smucker Company (SJM)
* Kohl’s Corporation (KSS)
* Li Auto Inc. (LI)
* Patterson Companies, Inc. (PDCO)
Companies reporting earnings after the market close include:
* Affirm Holdings, Inc. (AFRM)
* Cooper Companies, Inc. (COO)
* CrowdStrike Holdings, Inc. (CRWD)
* Five Below, Inc. (FIVE)
* HP Inc. (HPQ)
* Nutanix, Inc. (NTNX)
* NetApp, Inc. (NTAP)
* Okta, Inc. (OKTA)
* Salesforce, Inc. (CRM)
* Victoria’s Secret & Co. (VSCO)
Super Micro Computer, Inc. (SMCI) is extending its weakness from Tuesday following a short report.
In the commodity markets, crude oil and gold futures extended their declines, and Bitcoin (BTC/USD) retreated below the $60,000 level. The yield on the 10-year Treasury note fell 1.1 basis points to 3.822%. Asian stocks closed Wednesday’s session with mixed results, while European stocks were firmer in early trading.
