Stock Market Today: Mixed Performance Amid Nvidia Earnings and Economic Data
Market Overview: November 21, 2024
The stock market displayed mixed performance on Thursday, November 21, 2024, as investors digested Nvidia’s earnings report and awaited key economic data releases. The Dow Jones Industrial Average ($DOWI) showed resilience, while the S&P 500 ($SPX) and Nasdaq 100 ($IUXX) faced slight pressure.
Major Index Performance
As of the latest trading session:
– The S&P 500 Index (SPY) remained relatively flat
– The Dow Jones Industrial Average (DIA) edged up by 0.32%
– The Nasdaq 100 Index (QQQ) dipped by 0.08%
Key Market Movers
Nvidia (NVDA), a bellwether for the AI market, reported better-than-expected Q3 results after the close on Wednesday. However, the stock dropped over 2% in after-hours trading, suggesting that investors had anticipated even stronger performance. This reaction is weighing on U.S. futures, particularly in the tech sector.
Target (TGT) faced significant pressure, closing down more than 21% after cutting its full-year outlook due to flat sales and inventory concerns. This move has led retailers lower across the board.
On a positive note, Williams-Sonoma (WSM) surged by more than 27% after reporting Q3 adjusted EPS of $1.96, surpassing consensus estimates.
Sector Highlights
Health insurance stocks rallied following RBC Capital Markets’ positive outlook on the sector. Notable gainers included:
– Humana (HUM): Up more than 5%
– Molina Healthcare (MOH): Increased by over 4%
– UnitedHealth Group (UNH): Led Dow Jones Industrials with a 4% gain
Technology stocks faced pressure, particularly in the chip sector, as investors reassessed valuations in light of Nvidia’s earnings.
Upcoming Market Events
Investors are closely watching several key events that could impact market sentiment:
1. Economic Data Releases: Initial Jobless Claims for the week ended November 15 and the Existing Home Sales report are due today.
2. Federal Reserve Commentary: Recent comments from Fed officials suggest a cautious approach to future rate adjustments. Fed Governor Cook indicated a potential move towards a more neutral stance, while Governor Bowman emphasized the need for caution in reducing rates.
3. Earnings Reports: Several major companies are set to report earnings today, including:
– Gap Inc (GAP)
– Intuit Inc (INTU)
– PDD Holdings (PDD)
– Baidu (BIDU)
– Deere & Co (DE)
Economic Indicators
Recent economic data shows:
– MBA mortgage applications rose 1.7% in the week ended November 15
– The average 30-year fixed rate mortgage increased to a 4-month high of 6.90%
Global Market Influence
European markets opened mixed as traders assessed Nvidia’s earnings and awaited Eurozone consumer confidence data.
Asia-Pacific indices mostly trended lower, with technology stocks under pressure following Nvidia’s earnings report.
Commodities and Bonds
– WTI crude oil futures trended higher, hovering near $69.41 per barrel
– The U.S. 10-year treasury yield increased, floating near 4.414%
Market Outlook
As the market digests Nvidia’s earnings and anticipates crucial economic data, investors remain cautious. The mixed performance across major indices reflects the current uncertainty in the market. Traders are closely monitoring tech stocks, retail sector developments, and upcoming economic indicators to gauge the market’s direction in the near term.
With geopolitical tensions easing slightly and the Federal Reserve maintaining a balanced stance on monetary policy, the market continues to seek clear catalysts for its next significant move. As always, investors are advised to stay informed and maintain a diversified portfolio in these dynamic market conditions.
