The Thanksgiving holiday means the US government will release its weekly update on jobless claims on Wednesday instead of the usual Thursday. Other than that, the release of the minutes from the Fed’s latest policy meeting on Tuesday and preliminary reports on US business activity on Friday are among the highlights.
That could make Nvidia’s upcoming profit report on Tuesday the week’s highest-profile event.
Nvidia carries huge sway on the S&P 500 and other indexes because it’s swelled to become the fifth-most valuable US stock. Much of that rise has been because of excitement around AI, and Nvidia’s report could offer clues on how much all the talk about AI is translating into actual sales.
Analysts expect Nvidia to say its earnings per more than quintupled from a year earlier and that its revenue soared to nearly $US16.2 billion ($US24.7 billion) from less than $US6 billion.
Nvidia has been one of the seven Big Tech stocks that have accounted for a disproportionate amount of the S&P 500’s gains this year. The “Magnificent Seven” stocks have returned 73 per cent so far this year, versus just 6 per cent for the other 493 companies, according to Goldman Sachs strategists.
While forecasts continue for them to deliver stronger growth, the strategists led by David Kostin warn “the risk/reward profile is not especially compelling given elevated expectations.”
Nvidia rose 2.3 per cent before its report. Best Buy, Deere, HP and Lowe’s will also be giving their latest quarterly updates this week.
On the losing end of Wall Street Monday was Kohl’s. The retailer fell 2.7 per cent after it said that Dave Alves left as its president and chief operating officer, less than nine months after naming him to the post.
In the bond market, Treasury yields were easing. The yield on the 10-year Treasury, which is the centrepiece of the bond market, dipped to 4.42 per cent from 4.44 per cent late Friday.
The two-year yield, which moves more on expectations for Fed action, slipped to 4.89 per cent from 4.90 per cent late Friday.
In stock markets abroad, Japan’s Nikkei 225 index touched a 33-year high before falling later in trading to a dip of 0.6 per cent.
Stock indexes were stronger elsewhere in Asia and mixed in Europe.
Crude oil prices rose to recover some of their sharp losses over the last couple months. A barrel of US crude oil for delivery in December rose $US1.71 to settle at $US77.60, but it’s still well below its perch above $US93 in late September.
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