Nvidia 'beats' as expected, but fallout limited
A look at the day ahead in U.S. and global markets from Mike Dolan
After all that, Nvidia NVDA.O beat expectations - which has become "expected" - and the stock retreated about 5%. This is still August, after all.
To be fair, the negative market reception to the artificial intelligence pacesetter's quarterly results overnight was typical of the reaction to other ostensible "beats" in the sector in this earnings season. These stocks are expensive, have come a long way in a short space of time and the bar to impress is now sky high.
And while the hoopla around the $3.1 trillion-valued Nvidia's earnings this week reflects long-standing concerns about over-concentration of the market on the fortunes of a handful of companies, the wider disturbance has been limited.
There were some clouds on the horizon of the megacap chip designer, but the main concern was simply that the "beat" wasn't as big as it has been recently. For all the reasonable concerns, this was far from a fatal blow to the AI theme.
Spin out to other related readouts and the sky still looks pretty clear. Salesforce CRM.N beat Wall Street expectations on revenue and profit too amid higher spending on its enterprise cloud products - sending its shares up 3% in extended trading.
Super Micro Computer SMCI.O did tumble almost 20% on Wednesday - but that was after the AI server maker said it would delay the filing of its annual report a day after Hindenburg Research disclosed a short position in the company.
And away from the Big Tech and AI world, the market value of billionaire Warren Buffett's Berkshire Hathaway BRKa.N surpassed $1 trillion for the first time with a modest 1% gain in its class B stocks.
The upshot ahead of Thursday's bell? U.S. stock futures ESc1, NQcv1 were steady to higher after the indexes ebbed marginally in the previous session.
ATTENTION BACK ON MACRO WORLD
Attention now switches back to the macro world, with the significant backdrop of a likely first Federal Reserve rate cut in the cycle next month.
Even hawkish Atlanta Fed boss Raphael Bostic said overnight that it may be "time to move", even though he retained the right to see some more data before making up his mind.
On that score the next ingredients come later today with another critical health check on the labor market and weekly jobless claims, with the Fed's favored PCE inflation gauge due out tomorrow.
A punchy 100 basis points of Fed easing is still priced into the futures market by year-end - so perhaps there's some room to row that back, regardless of thinking on the first move in September.
Despite a heavy week of Treasury debt sales, that Fed picture remains a balm for the bond market. Two-year yields US2YT=RR recorded their lowest New York close in more than a year on Wednesday and remained subdued at 3.86% first thing today, and 10-year yields slipped back too.
The global inflation picture still appears benign.
Oil prices remain under wraps even against unsettling supply threats and continue to register year-on-year losses of up to 7%. U.S. retail gasoline prices are down more than 14% on this time last year, the deepest annual loss in 12 months.
Inflation fell in six important German states in August due to lower energy prices, suggesting Germany's national inflation rate could decline noticeably this month.
Economists polled by Reuters forecast a harmonised national inflation rate in Germany - the euro zone's largest economy - of 2.3% in August, down from 2.6% the previous month. But the readout from the states means than could now come in even lower.
With markets already pricing a second interest rate cut this year from the European Central Bank even before the Fed meets next month, the euro EUR= fell back sharply on Thursday and lifted the dollar index .DXY more broadly.
Just as important, money markets now see a 70% chance of third ECB cut in October.
And in China, the offshore yuan CNH= surged to its strongest level in more than three weeks despite mainland stocks .CSI300 there ending in the red again.
UBS on Wednesday cut its 2024 economic growth forecast for China to 4.6% from 4.9%, as it expects weaker property activity to have bigger than previously assumed drag on the overall economy.
But in some sign of detente between the world's two biggest economic powers, U.S. National Security Adviser Jake Sullivan met Chinese President Xi Jinping in Beijing on Thursday and wrapped up three days of wide-ranging talks aimed at easing tensions between the two ahead of November's U.S. election.
Key developments that should provide more direction to U.S. markets later on Thursday:
* US Q2 GDP revision, weekly jobless claims, July trade balance, July wholesale/retail inventories, July pending home sales; Canada Q2 current account
* Atlanta Fed President Raphael Bostic speaks
* US corporate earnings: Best Buy, Dollar General, Ulta Beauty, Lululemon, Athletica, Autodesk, Campbell Soup, Brown-Forman, MongoDB
* US Treasury sells $44 billion of 7-year notes, $85 billion of 4-week bills, $80 billion of 8-week bills
Nvidia's revenue growth is decelerating https://reut.rs/3AyfQwN
AI optimism boosts tech stocks this year AI optimism boosts tech stocks this year https://reut.rs/3z8LNeC
Continuing jobless claims and JOLTS hires https://reut.rs/4cAKvXt
Pound touches its highest per dollar in more than two years this week https://reut.rs/3z1AGnR
By Mike Dolan, editing by XXXX
mike.dolan@thomsonreuters.com
متعلقہ اثاثے
تازہ ترين خبريں
دستبرداری: XM Group کے ادارے ہماری آن لائن تجارت کی سہولت تک صرف عملدرآمد کی خدمت اور رسائی مہیا کرتے ہیں، کسی شخص کو ویب سائٹ پر یا اس کے ذریعے دستیاب کانٹینٹ کو دیکھنے اور/یا استعمال کرنے کی اجازت دیتا ہے، اس پر تبدیل یا توسیع کا ارادہ نہیں ہے ، اور نہ ہی یہ تبدیل ہوتا ہے یا اس پر وسعت کریں۔ اس طرح کی رسائی اور استعمال ہمیشہ مشروط ہوتا ہے: (i) شرائط و ضوابط؛ (ii) خطرہ انتباہات؛ اور (iii) مکمل دستبرداری۔ لہذا اس طرح کے مواد کو عام معلومات سے زیادہ کے طور پر فراہم کیا جاتا ہے۔ خاص طور پر، براہ کرم آگاہ رہیں کہ ہماری آن لائن تجارت کی سہولت کے مندرجات نہ تو کوئی درخواست ہے، اور نہ ہی فنانشل مارکیٹ میں کوئی لین دین داخل کرنے کی پیش کش ہے۔ کسی بھی فنانشل مارکیٹ میں تجارت میں آپ کے سرمائے کے لئے ایک خاص سطح کا خطرہ ہوتا ہے۔
ہماری آن لائن تجارتی سہولت پر شائع ہونے والے تمام مٹیریل کا مقصد صرف تعلیمی/معلوماتی مقاصد کے لئے ہے، اور اس میں شامل نہیں ہے — اور نہ ہی اسے فنانشل، سرمایہ کاری ٹیکس یا تجارتی مشورے اور سفارشات؛ یا ہماری تجارتی قیمتوں کا ریکارڈ؛ یا کسی بھی فنانشل انسٹرومنٹ میں لین دین کی پیشکش؛ یا اسکے لئے مانگ؛ یا غیر متنازعہ مالی تشہیرات پر مشتمل سمجھا جانا چاہئے۔
کوئی تھرڈ پارٹی کانٹینٹ، نیز XM کے ذریعہ تیار کردہ کانٹینٹ، جیسے: راۓ، خبریں، تحقیق، تجزیہ، قیمتیں اور دیگر معلومات یا اس ویب سائٹ پر مشتمل تھرڈ پارٹی کے سائٹس کے لنکس کو "جیسے ہے" کی بنیاد پر فراہم کیا جاتا ہے، عام مارکیٹ کی تفسیر کے طور پر، اور سرمایہ کاری کے مشورے کو تشکیل نہ دیں۔ اس حد تک کہ کسی بھی کانٹینٹ کو سرمایہ کاری کی تحقیقات کے طور پر سمجھا جاتا ہے، آپ کو نوٹ کرنا اور قبول کرنا ہوگا کہ یہ کانٹینٹ سرمایہ کاری کی تحقیق کی آزادی کو فروغ دینے کے لئے ڈیزائن کردہ قانونی تقاضوں کے مطابق نہیں ہے اور تیار نہیں کیا گیا ہے، اسی طرح، اس پر غور کیا جائے گا بطور متعلقہ قوانین اور ضوابط کے تحت مارکیٹنگ مواصلات۔ براہ کرم یقینی بنائیں کہ آپ غیر آزاد سرمایہ کاری سے متعلق ہماری اطلاع کو پڑھ اور سمجھ چکے ہیں۔ مذکورہ بالا معلومات کے بارے میں تحقیق اور رسک وارننگ ، جس تک رسائی یہاں حاصل کی جا سکتی ہے۔
