Stocks End Flat Ahead of Nvidia but Target Dives
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Welcome to the swamp market update podcast, where each trading day we recap tea market results and statistics. I'm Keith Lance ferd, and here's a smart of what happened today, wednesday, november twenty youths, a case of invidia nerves. Combined with an off target earnings report, capital streets subdued.

Most major indexes spent the day lower but rebounded almost unchanged by the closing belt in videos s earnings, revenue and guidance out just after the cloth easily be consensus, but the quarter outlook didn't meet the most bolli's levels investors might have wanted. Shares slipped three percent in post market trading immediately after the report, then quickly bounced back. Then they dipped again as trading remain volatile.

Quarterly earnings of eighty one sense per share beat the analyst sensus instrument of seventy five cents. Quarter sales of thirty five point one billion dollars beat the analyst consent assessment of thirty three point one billion dollars by nearly six percent and represented at ninety three point seven percent increase over the same quarter a year ago. What possibly tripped up shares was revenue games of roughly thirty seven point five billion dollars, plus or minus two percent.

For the current quoter, that's only about five hundred million dollars above the average analyst estimate, around the same as the previous quarter. Guidance beat that also disappointed investors. NVIDIA had been guiding one and a half billion to two billion dollars higher than analysts consensus regularly until the last two reports, so called whispers numbers on wall street, we're talking about possible revenue guidance says as high as thirty nine billion dollars.

Nvidia's growth margin guidance of a seventy three point two five percent also was down from around seventy five percent earlier this year. Possibly another sour note. My take is the soft revenue guidance is the primary reason for the post market negative reaction, said Nathan Peterson, director of derived ves analysis at the shop center for financial research before in video.

Higher yields pressured equities during the session, though the benchmark ten year no yields stayed comfortable. Ly in its short term trading range between four point four percent and four point five percent and remained under recent peaks. One weight on treasuries, which move the opposite direction of yids, is the way to see who president elect Donald trump appoint is treasury secretary.

The market might be building in caution in case the ominous has protectionist tendencies. Some analysts say another pressure point today, at least for stocks, was target to shares lost about a fifth of their value following earnings in gaining the disappointed investors targets. Smith gave the retail sector a cold, with even yesterday's leader walmart falling at one point, weakness in directionally demand.

That target sends a message that consumers, at least there, aren't loading their shopping carts beyond the essentials, perhaps a warning shot ahead of the holiday season. Here's with a major benchMarks ended the S M P five hundred and x state mostly flat, up zero point one three point or zero percent to five thousand nine seventeen point one one. The doll Jones industrial average rose one hundred and thirty nine point five three points, or zero point three two percent, to forty three thousand four hundred and eight point four seven and the can posit fell twenty one point three two points of zero point one one percent eighteen thousand nine sixty six point one four.

A ten year treasury note yield added four basis points to four point four one percent, and the sea, both volatility index, or vx, climbed to seventeen point two six near recent highs. As well as stocks on the move, consumer discretionary and info tech, where the lost leader's wednesday hit by invidia A A N target. The worries over in videos likely related to the relatively high bar set for both its quarterly revenue and guidance.

Health care, somewhat surprisingly, emerged as the sector Victor today. After being the worst performer over the last week, I made concerns about regulatory policy under the incoming tromp administration. Target fell twenty one percent after slightly missing analysts revenue estimates but falling dramatically short on the average earnings per share projection.

IT also forecast fourth quarter earnings well below athletes thinking. One chAllenged last quarter was lighter demand for directionally goods, items like cloth and products for the home. These can be more profitable than grocery, ies competitor walmart said yesterday. It's been attracting a higher income group of customers, perhaps evidence that it's taking market share from target and its higher and merchandise.

Comcast rose one point six percent after announcing a plan to spin off cable channels, including M, S, B, C, C, N, B, C and U, S, A, according to C, N, B, C, Q, E, pop five percent after an upgrade from bank of amErica to buy from under perform shelters are still taking in more pets on a net basis, and euro year pet spending is negative. But adoption trends have steadily improved since the start of this year, and pet spending appears to have bottom. The analysis, while in videos s guidance may have been disappointing, keep in mind, it's a transitional period for the company as in video moves customers towards its new blackwell chips.

This could have effect of guidance for the current quarter and put more emphasis on what in video expects for the coming quarters and the full year of twenty twenty five in videos, S C E O Johnson huang ang said last month, the blackwell demand has been quote on quote insane, but there's also concerned about various issues in the product development. The company might address the situation more broadly in its earnings call. Initial moves after earnings reports sometimes can be misleading as more information can emerge later in its earnings call.

So one strategy is to let the dust settle before deciding what to do if you plan to trade shares as far as possible. Wider impact on the market. Nvidia's past rallies have had a bigger impact that its past to sell off, though past is in precedent. Cyber security firm palo alto networks also reported this afternoon earnings per shares are passed wall streets estis, while revenue came in near expectations, but shares took an immediate five percent hit in post market trading, perhaps indicating possible disappointment. The guidance was in line and not above expected levels.

Analysts expect tomorrow s initial jobless claims to be relatively steady at two hundred and twenty one thousand and according to brief, in in that com and october existing home sales to climb to a seasonally adJusting annual rate of three point nine million from three point eight four more union september burger rates are up sharply over the last month, which might limit, by your enthusiasm, october leading indicators from the conference board and final november university of michigan consumer sentiment or other data to watch tomorrow and friday. The november philadelphia ed index do thursday and the S M P global U S, preliminary november manufacturing PMI do friday, along with deer earnings tomorrow, could provide insight into the U. S.

Industrial climate. Next week is holiday shortened, but packed with data, including the feds favour inflation report, personal consumption expendable or P C E. Prices. A holiday week also features a fresh gross domestic product or GDP estimate, consumer confidence and a host of last minute retailers trying to post their earnings is just in time for the holiday.

The markets been steadily down, shifting rate cut expectations for december and next year on solid economic data, recent cause reMarks by a fed german german pal and concerns about fiscal policy from the incoming administration that some analysts to believe could be inflationary, including terrifying and immigration. We expect the fed to continue with rate cuts over the next few months if inflation continues to trend lower, swab experts said in an analysis late last week. However, we are assuming a slow and slower path of rate cuts in twenty twenty five then we did just a month ago.

That chair or own power indicated that for now, the fed will focus on the current information IT has, which still shows room for a decline in the federal funds rate towards four percent. However, IT will be attentive to the emerging policy shifts that could till the inflation outlook to the upside, consequently, intermediate to long term rates have the potential to move higher from current levels. The band was weak for a twenty year treasury bond auction today, another source of pressure on treasuries.

However, fed governor lisa cook delivered reMarks that could be seen as rate friendly. Quote, the totality of the data suggest that a distinct lation ary trajectory is still in place and that the labor market is gradually cooling in quote, cook said, according to media reports of her comments. As such, I view the risks to achieving the federal reserve do Mandate of maximum employment and Price stability as being roughly imbaLance, still current odds of a rate cut next month look like a coin toss for the C M E fed funds futures market.

As of late today, trader see fifty two percent chances rates will fall twenty five basis points at the conclusion of the federal open market committee meeting to summer 1 and eighteen at a forty eight percent chance of no move based on the C M。 I fed watch tool. This has been the swap market update podcast to stay informed of visit swap dot com sash market update or follow the show for free in your favorite podcasting out and if you like what you've heard, please consider us a reading or a review. IT really helps new listeners find the show. Join us for another update tomorrow.

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