Wall Street ends mixed, Nvidia shares slip after the bell
Target plunges over 20% after muted holiday-quarter sales forecast
Nvidia slips before results due after market close
Indexes: Dow up 0.32%, S&P flat, Nasdaq down 0.11%
Updates after the close, adds Nvidia late trading and official volume and advancers-decliners
By Abigail Summerville
Nov 20 (Reuters) - The tech-heavy Nasdaq closed lower onWednesday, taking a break from the prior session's rally as investors worried about escalating Russia-Ukraine tensions and weak results from Target, while awaiting earnings from megacap Nvidia that landed after the bell.
The Dow and S&P 500 ticked up late in the session, with the Dow closing higher and the S&P 500 ending flat.
Stocks fell early in the session, aftera report said Ukrainefired long-range British Storm Shadow missiles into Russian territory. On Tuesday,Ukraine launchedU.S.-made ATACMS missiles into Russia, and Russia announcedit had lowered the threshold for nuclear action.
Wall Street's "fear gauge" .VIX jumped to 18.79 before easing to 17.24, still at its highest since the Nov. 5 U.S. presidential election.
"It's gotten a little more defensive today after a strong rally yesterday from growth stocks and the tech sector," said James Regan, Director of Wealth Management Research at D.A. Davidson
"Maybe there's a conservative view ahead of Nvidia earnings or a broader reaction from Target's earnings which is a consumer bellwether. There are also more geopolitical concerns with tensions in Ukraine and Russia and the U.S. evacuating embassies," Regan said.
AI chipmaker NvidiaNVDA.O fell 0.76% during the trading session ahead of itsresults. The stock fell further after the bell when its fourth-quarterrevenue forecast was slightly above estimates, but failed to meet lofty expectations of some investors.
During regular trading, theindex heavyweight dragged down theInformation Technology sector .SPLRCT 0.23% and thetech-heavy Nasdaq 0.11%.
Target TGT.N plunged 21.4% after the retailer forecast holiday-quarter comparable sales and profit below Wall Street expectations following a third-quarter estimate miss.
The consumer discretionary .SPLRCD index was the biggest sectoral decliner, falling 0.57%.
Growth stocks like Tesla TSLA.O and Amazon.com AMZN.O also fell 1.15% and 0.85% respectively.
The Dow Jones Industrial Average .DJI rose 139.53 points, or 0.32%, to 43,408.47, the S&P 500 .SPX gained 0.13 points, or 0.00%, to 5,917.11 and the Nasdaq Composite .IXIC lost 21.32 points, or 0.11%, to 18,966.14.
Nvidia shares have nearly tripled in value this year, accounting for about 20% of the S&P 500's .SPX returns over the last 12 months, according to BofA Global Research.
"We're starting to see commentary from larger companies that have been deploying capital in the AI, tech spend space talking about examples of how that spend is converting to either higher revenue or cost savings. That bodes well for companies like Nvidia that are on the picks and shovels side of that tech, AI spend trade," said Bill Merz, head of Capital Markets Research for U.S. Bank's asset management group.
Cryptocurrency stocks ticked higher as bitcoin jumped above $94,000, with MicroStrategy MSTR.O soaring 10% andMARA Holdings MARA.O up 13.9%.
Traders have increased bets on the U.S. central bank leaving interest rates unchanged at its December meeting in the wake of strong economic data and signs of persistent inflation.
Declining issues outnumbered advancers by a 1.24-to-1 ratio on the NYSE. There were 184 new highs and 94 new lows on the NYSE.
On the Nasdaq, 2,007 stocks rose and 2,245 fell as declining issues outnumbered advancers by a 1.12-to-1 ratio. The S&P 500 posted 30 new 52-week highs and 13 new lows while the Nasdaq Composite recorded 92 new highs and 163 new lows.
Volume on U.S. exchanges was 13.20 billion shares, compared with the 14.32 billion average for the full session over the last 20 trading days.
Nvidia earnings moves https://reut.rs/40S2EOg
Reporting by Abigail Summerville in New York; additional reporting by Lisa Mattackal and Purvi Agarwal in Bengaluru; Editing by David Gregorio
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