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Black Marble
Writer's pictureHarrison Lindman

Markets Catch Their Breath Ahead of Nvidia’s Earnings


November 20th, 2024


Today, U.S. stocks staged a late-day recovery, erasing steep early losses as investors braced for Nvidia's highly anticipated earnings report. The market's performance was influenced by geopolitical tensions, weak retail earnings, and the continued surge in cryptocurrency prices.


Market Performance

  • Dow Jones Industrial Average: Gained 0.32% to close at 43,408.47

  • S&P 500: Ended flat at 5,917.11

  • Nasdaq Composite: Slipped 0.11% to finish at 18,966.14


Key Market Drivers

1. Nvidia (NVDA) Earnings: All eyes were on Nvidia's after-hours earnings report, with the chipmaker beating expectations but failing to meet some investors' lofty hopes. The stock, which has surged 200% year-to-date, slipped in after-hours trading.


2. Geopolitical Tensions: Reports of Ukraine using long-range missiles to strike Russian territory heightened concerns, causing the VIX "fear gauge" to spike to its highest level since the U.S. presidential election.


3. Retail Sector Woes: Target's shares plummeted 21.4% after the retailer missed profit estimates and slashed its full-year guidance, raising concerns about holiday-season consumer spending.


4. Crypto Rally: Bitcoin (BTC) reached a new record high near $94,500 before settling below $94,000, fueled by optimism for a crypto-friendly Trump administration.


Notable Stock Movements

  • Target (TGT): Plunged 21.4% on weak earnings and guidance

  • Tesla (TSLA) and Amazon (AMZN): Fell 1.15% and 0.85% respectively, contributing to the tech sector's underperformance


Sector Performance

  • Consumer Discretionary: Biggest decliner, falling 0.57%

  • Information Technology: Dropped 0.23%, dragged down by Nvidia's pre-earnings decline


The Look Ahead

Nvidia's earnings report, released after the closing bell, will likely set the tone for market sentiment in the coming days. The company's performance is seen as a crucial indicator of the strength of the AI trade that has driven much of this year's market gains.


As the year-end approaches, market participants will be closely watching for signs of sustained economic growth, potential shifts in monetary policy, and the continued evolution of the AI and cryptocurrency landscapes.


Stay tuned for further insights and analysis on The Bull Blog.

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