The week's top stock news, Nvidia on the march, and can earnings on the 21st propel the stock market again?
On the 21st, Nvidia reports earnings. Nvidia is up more than 46% so far this year, bringing its market capitalization to $179.4 billion, making it the third-largest U.S. company by market capitalization. Nvidia's earnings announcement will be a good indicator of whether this enthusiasm can continue. Analysts expect Nvidia to report revenue of $20.3 billion and earnings per share of $4.59 for the fourth quarter ended Jan. 29, according to data compiled by FactSet.
The New York stock market is expected to be volatile this week as the minutes of the Federal Open Market Committee's (FOMC) January meeting and Nvidia's earnings report are due on a shorter-than-usual trading day. The S&P 500, which had been on a run to record highs, held above the 5,000 level, but the rally stalled. The Dow ended the week down 0.11%, while the S&P500 and Nasdaq fell 0.42% and 1.34%, respectively. The FOMC minutes and Nvidia's earnings on the 21st will be key. At the January FOMC, the Fed kept its benchmark interest rate unchanged at 5.25% to 5.50%, but said it would not be appropriate to cut rates until it had greater confidence that inflation was moving steadily toward 2%. This was interpreted as a signal that a rate cut was not imminent. Add to that the fact that Fed Chairman Jerome Powell said in March that it was unlikely that inflation would reach a level that would allow for a rate cut, and the forecast for a rate cut at that time was pushed back from March to May. Financial markets will be closed on the 19th for Presidents' Day. Because of this, there will be four trading days this week, from the 20th to the 23rd.
