Nvidia Earnings In Focus On Wall Street

The major U.S. index futures are currently pointing to initial strength on Wednesday, with stocks likely to see further upside after ending the previous session mostly higher.

The upward momentum on Wall Street comes as traders look ahead to release of quarterly results from AI darling Nvidia (NVDA) after the close of today’s trading.

Nvidia, which has recently been a major market leader, is up by 0.5 percent in pre-market trading after surging by 4.9 percent on Tuesday.

Early buying interest may be somewhat subdued, however, as traders continue to express concerns about escalating tensions between Ukraine and Russia.

A lack of major U.S. economic data may also keep some traders on the sidelines ahead of Nvidia’s results, although comments from several Fed officials may attract attention.

Among individual stocks, shares of Target (TGT) are moving sharply lower in pre-market trading after the retailer reported weaker than expected third quarter results and lowered its full-year guidance.

Chinese electric vehicle maker Nio (NIO) may also move to the downside after reporting third quarter sales that missed analyst estimates.

On the other hand, shares of Comcast (CMCSA) may see initial strength after the company announced its intent to spin off a portfolio of NBCUniversal’s cable television networks, including USA Network, CNBC, and MSNBC, into a new publicly traded company.

Stocks moved to the downside early in the session on Tuesday but showed a significant rebound over the course of the trading day. The Nasdaq and the S&P 500 climbed well off their early lows and into positive territory, although the narrower Dow remained stuck in the red.

The major averages eventually ended the day mixed. While the Dow fell 120.66 points or 0.3 percent to 43,268.94, the S&P 500 rose 23.36 points or 0.4 percent to 5,916.98 and the Nasdaq jumped 195.66 points or 1.0 percent to 18,987.47.

The early weakness on Wall Street came amid concerns about escalating tensions between the U.S. and Russia over the war in Ukraine.

After President Joe Biden gave Ukraine permission to attack Russian territory using U.S.-made long-range missiles, Russian President Vladimir Putin has signed a decree amending the country’s nuclear doctrine.

Kremlin Spokesperson Dmitry Peskov said the updated doctrine says Russia “reserves the right to use nuclear weapons in the event of aggression with the use of conventional weapons against it or the Republic of Belarus, which creates a critical threat to sovereignty or territorial integrity.”

“Aggression against the Russian Federation by any non-nuclear state with the participation or support of a nuclear state is considered a joint attack,” Peskov added, according to NBC News.

Shortly before the Kremlin updated its nuclear weapons doctrine, Ukraine reportedly used U.S.-made long-range missiles to attack a Russian military facility in the Bryansk border region.

Selling pressure waned shortly after the start of trading, however, with an advance by shares of Nvidia helping lead the turnaround by the Nasdaq.

Retail giant Walmart (WMT) also showed a notable move to the upside after reporting better than expected third quarter results and raising its full-year guidance.

Meanwhile, shares of Lowe’s (LOW) slumped after the home improvement retailer reported third quarter results that exceeded estimates but forecast a decrease by full-year sales.

Computer hardware stocks extended the substantial rebound seen in the previous session, driving the NYSE Arca Computer Hardware Index up by 3.3 percent. The index continued to regain ground after hitting a two-month closing low last Friday.

Super Micro Computer (SMCI) led the sector higher once again after announcing BDO as its independent auditor and submitting a compliance plan to the Nasdaq.

Gold stocks also saw significant strength amid an increase by the price of the precious metal, with the NYSE Arca Gold Bugs Index jumping by 2.3 percent.

On the other hand, airline stocks moved sharply lower on the day, resulting in a 4.6 percent nosedive by the NYSE Arca Airline Index.

Commodity, Currency Markets

Crude oil futures are climbing $0.46 to $69.85 a barrel after rising $0.23 to $69.39 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $2,644, up $13 compared to the previous session’s close of $2,631. On Tuesday, gold advanced $16.40.

On the currency front, the U.S. dollar is trading at 155.73 yen compared to the 154.66 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0558 compared to yesterday’s $1.0596.

Asia

Equity markets in Asia closed on a mixed note on Wednesday ahead of the much-anticipated earnings update from NVIDIA Corp. The People’s Bank of China holding rates steady as well as worries about the escalation in the Russia-Ukraine conflict also impacted market sentiment.

China’s Shanghai Composite Index climbed 0.7 percent to finish trading at 3,368.56. The day’s trading ranged between 3,375.25 and 3,333.00. The Shenzhen Component Index gained 0.8 percent to close at 10,875.45.

The Japanese benchmark Nikkei 225 Index slipped or 0.2 percent to close at 38,352.34. The day’s trading range was between 38,520.45 and 38,180.15.

Tokyo Gas surged close to 13 percent amidst reports of American activist investor Elliott Management taking a 5 percent stake. Sompo Holdings also rallied 11.4 percent. Seven & 1 Holdings gained 6.5 percent followed by DeNA Co. that added 5.3 percent. Mercari also recorded an increase of 3.8 percent.

Tokio Marine Holdings declined close to 7 percent followed by MS&AD Insurance Group Holdings that lost 4.9 percent. Keisei Electric Railway, Odakyu Electric Railway and Sumitomo Osaka Cement all lost more than 3 percent in the day’s trading.

The Hang Seng Index of the Hong Kong Stock Exchange added 0.2 percent from the previous close to finish trading at 19,623.39. The day’s trading range was between a high of 19,752.93 and a low of 19,575.91.

The Korean Stock Exchange’s Kospi Index rose 0.4 percent to close trading at 2,482.29. The day’s trading range was between 2,471.79 and 2,489.15.

Australia’s S&P/ASX200 Index closed trading at 8,326.30, dropping 0.6 percent, after setting a new 52-week high. The day’s trading range was between 8,318.20 and 8,379.80.

Tabcorp Holdings, West African Resources, Healius and Genesis Minerals gained more than 2 percent. Block followed with a gain of a little less than 2 percent.

Neuren Pharmaceuticals extended losses with a decline of 7.5 percent. New Hope Corp., Karoon Energy, Brambles and Netwealth Group all shed more than 3 percent.

The NZX 50 Index of the New Zealand Stock Exchange shed 0.6 percent to close trading at 12,737.06, versus the previous close of 12,816.32. Trading ranged between 12,700.26 and 12,824.32.

EROAD led with a gain of 5.7 percent. Healthcare business Pacific Edge followed closely with a gain of 5.6 percent. Synlait Milk and Genesis Energy both rallied more than 5 percent. Summerset Group added 2.9 percent.

ANZ Holdings topped losses with a decline of 3.6 percent. Skellerup and Mercury NZ both slipped more than 3 percent. Fisher & Paykel Healthcare declined 2.6 percent whereas Kiwi Property lost more than 2 percent.

Europe

European stocks are mostly higher on Wednesday, recovering a bit after posting sharp losses in the previous session. Despite persisting concerns about the Russia-Ukraine conflict, investors are picking up stocks, focusing on earnings and other corporate news, in addition to assessing the regional economic outlook.

While the U.K.’s FTSE 100 Index is up by 0.2 percent, the French CAC 40 Index and the German DAX Index are both up by 0.5 percent.

On the geopolitical front, the U.S. Embassy in Kyiv said it would stay closed Wednesday after receiving a warning of a potentially significant Russian air attack on the Ukrainian capital.

The precautionary step came after Russian officials promised a response to President Joe Biden’s decision to let Ukraine strike targets on Russian soil with U.S.-made missiles – a move that angered the Kremlin.

The Greek and Spanish embassies in Kyiv have closed to the public today after air raid sirens were activated in the Ukrainian capital several times overnight.

In the UK market, Sage Group shares are up nearly 20 percent after the company reported strong annual results and announced a new share buyback program.

Severn Trent is rising 3.5 percent thanks to a significant turnaround in interim profits. United Utilities, Anglo American Plc, Beazley, IAG, Prudential, Mondi, Imperial Brands, Barclays Group and Standard Chartered are up 1 to 2.5 percent.

Convatec Group is down nearly 3 percent. Persimmon, British Land Company, Admiral Group, Entain, Taylor Wimpey, Segro, Marks & Spencer, Vistry Group, EasyJet and Howden Joinery are down 1 to 2.3 percent.

In the German market, Rheinmetall is up 2.7 percent, extending gains from the previous session. Brenntag is up nearly 2 percent, while HeidelbergCement, Zalando, SAP, Deutsche Bank, Deutsche Telekom and Adidas are gaining 1 to 1.3 percen.

Porsche is down more than 3 percent. Symrise, Sartorius, Fresenius, Merck and Mercedes-Benz are moderately lower.

In Paris, Edenred is climbing nearly 4 percent following a rating upgrade. Kering is up 2.3 percent and Teleperformance is advancing 1.8 percent. Dassault Systemes, Airbus, LVMH and Societe Generale are up 1 to 1.2 percent.

STMicroElectronics, Thales, Capgemini, Renault and Stellantis are down with sharp to moderate losses.

In the Swiss market, shares of private equity firm Partners Group are up 1.5 percent after the group purchased a majority stake in Spain-based hospitality platform Bluesea Hotels. As part of the deal, Partners Group will join Bluesea’s board and manage the latter’s renovations, expansion, and hotel acquisitions in partnership with Portobello Capital.

On the economic front, UK consumer price inflation accelerated more than expected in October, lowering the chances of a rate cut at the upcoming monetary policy meeting in December.

The consumer price index rose 2.3 percent on a yearly basis following September’s 1.7 percent increase, which was the lowest since April 2021, the Office for National Statistics reported today.

The rate again exceeded the Bank of England’s 2 percent target and came in above economists’ forecast of 2.2 percent.

Core inflation unexpectedly edged up to 3.3 percent from 3.2 percent in September. The core rate was seen at 3.1 percent.

German producer prices dropped 1.1 percent in October on a yearly basis, following a 1.4 percent decrease in the prior month, data from Destatis showed. Month-on-month, producer prices rebounded 0.2 percent in October after falling 0.5 percent in September.

Eurozone construction output dipped 0.1 percent in September after remaining flat in August, data from Eurostat showed. The yearly decline in construction output eased to 1.6 percent from 2.5 percent.

U.S. Economic News

Federal Reserve Vice Chair for Supervision Michael Barr is due to testify on oversight of prudential regulators before the House Financial Services Committee at 10 am ET.

At 10:30 am ET, the Energy Information Administration is scheduled to release its report on crude oil inventories in the week ended November 15th.

Crude oil inventories are expected to inch up by 0.8 million barrels after rising by 2.1 million barrels in the previous week.

Federal Reserve Board Governor Lisa Cook is due to speak on the economic outlook and monetary policy before a University of Virginia “UVA Economics Presents” event at 11 am ET.

At 12:15 pm ET, Federal Reserve Board Governor Michelle Bowman is scheduled to speak on “Approach to Agency Policymaking” before the Forum Club of the Palm Beaches.

The Treasury Department is due to announce the results of this month’s auction of $16 billion worth of twenty-year bonds at 1 pm ET.

At 4 pm ET, Boston Federal Reserve President Susan Collins is scheduled to give remarks and participates in a conversation at an event hosted by the University of Michigan Gerald R. Ford School of Public Policy.