U.S. stock futures were relatively flat on Tuesday night as investors awaited chipmaker Nvidia’s quarterly earnings announcement scheduled for Wednesday after the bell. Futures tied to the Dow Jones Industrial Average were down slightly, while S&P 500 and Nasdaq 100 futures also dipped. In after-hours trading, Nordstrom saw a 7% increase after posting better-than-expected earnings, while Ambarella jumped 20% on a positive revenue forecast for the third quarter. However, PVH, owner of Calvin Klein, dropped 7% due to a disappointing outlook for the current quarter.
During Tuesday’s trading session, the broader market index and tech-heavy Nasdaq Composite both saw modest gains, with Nvidia’s 1.5% increase helping to support these indexes. The Dow also edged up slightly to post a second consecutive record close. Investors are closely monitoring Nvidia, a leader in the artificial intelligence industry, to assess the sustainability of the broader tech and AI trade. Nvidia’s stock has surged 159% in 2024, prompting questions about how much further it can increase. Key factors of interest include the delivery schedule for Nvidia’s Blackwell chips and the demand for AI.
While there is optimism priced into the market for Nvidia’s earnings announcement, other AI stocks are trading slightly below their all-time highs. According to Erin Browne, Pimco managing director and portfolio manager, Nvidia’s current valuation is not expensive compared to its five-year average. She believes there is still potential for Nvidia to surprise the market positively with its results. Earnings reports from Bath & Body Works, Foot Locker, Kohl’s, and Salesforce are also anticipated by investors on Wednesday, in addition to Nvidia’s announcement in the afternoon.
Overall, Wall Street is focused on Nvidia’s quarterly earnings report to assess the company’s performance and the broader tech and AI sectors. The success of Nvidia, a key player in the AI industry, could have implications for other stocks in the sector. While some stocks saw gains in after-hours trading, others experienced declines based on their earnings outlook. Investors will be closely monitoring key metrics such as demand for AI and the delivery schedule for Nvidia’s Blackwell chips to gauge the company’s future growth potential.
In conclusion, the anticipation surrounding Nvidia’s quarterly earnings announcement is driving market activity, with investors awaiting insights into the company’s performance and the broader tech sector. The outcome of Nvidia’s report could have implications for other AI stocks and the market as a whole. Factors such as demand for AI and Nvidia’s product development plans will be closely watched by investors to assess the company’s future growth prospects. Additionally, other earnings reports from companies like Bath & Body Works, Foot Locker, Kohl’s, and Salesforce will also be closely monitored for their impact on market sentiment.
