Wall Street outlook this week: NVIDIA Corporation (NVDA.US) financial report is set to shock, followed by financial reports from retail giants and real estate data.
18/11/2024
GMT Eight
In the coming week, the market focus will shift from stock market volatility to a series of important financial reports, especially the earnings reports of NVIDIA Corporation. Retail giants Walmart Inc. and Target Corporation's financial reports will also attract attention. In addition, the fluctuation of Bitcoin prices is also a focus for investors. Economic data such as housing market data and preliminary indices of S&P Global, Inc.'s manufacturing and services will provide early indicators of economic growth. The Financial Stability Conference of the Cleveland Federal Reserve Bank and the QCon International Software Development Conference will also be highlights of the week.
After a week of stock market volatility, investors have more room to focus on NVIDIA Corporation's (NVDA.US) earnings report in the coming week. As the world's most valuable company, NVIDIA Corporation's leading position in artificial intelligence and chip fields makes its performance a market bellwether, signaling the trend of technology and AI stocks. It is reported that AI chip maker NVIDIA Corporation will announce its third-quarter performance later on Wednesday, but Wall Street is more interested in its expectations for the fourth quarter performance, as this will be the first reflection of the sales of the company's next-generation AI processor Blackwell.
The financial reports of Walmart Inc. and Target Corporation will bring a climax to the retail earnings season. Analysts expect Walmart Inc.'s growth in the second quarter to slow down, but the stock has surged 60% this year. Target Corporation, on the other hand, has risen by 8%.
The stock market rebound has led to a significant decline in major indices this week, with small-cap stocks experiencing a larger decline after a sharp rise following the Trump election last week. U.S. Treasury yields have steadily risen to a five-month high.
After reaching a historical high above $93,000 on Wednesday, Bitcoin prices dropped to around $90,000 in early trading on Saturday. Bernstein analysts urged investors to "quickly" increase their investments in the cryptocurrency industry in a report on Monday, predicting that the price of Bitcoin will reach $200,000 by the end of 2025.
This week, the retail industry's attention will mainly be focused on the reports of Walmart Inc. and Target Corporation, but end-of-quarter retail reports will also include Ross Stores (ROST.US), TJX (TJX.US), BJ's Wholesale (BJ.US), etc. The stock prices of TJX and BJ's are slightly below the buy point, so if they unexpectedly rise, it could have a significant impact.
Meanwhile, the latest data on the real estate market will be released next week, including the November builder confidence index and October new home construction data, providing investors with the latest developments in the real estate market. In addition, PMI preview data for the services and manufacturing industries will also be released next week, providing investors with more clues about the overall health of the economy.
Specifically, the economic calendar shows that on November 18th, the report on the November builder confidence index will be released, followed by the October new home construction data on November 19th. On November 21st, reports such as the Philadelphia Fed Manufacturing Survey, existing home sales for October, and the leading economic index for October will be released. Finally, on November 22nd, investors will receive important data such as the November preliminary value of the S&P US Services PMI, the November preliminary value of the S&P US Manufacturing PMI, and the November consumer confidence index (final value).
In terms of the Federal Reserve, following comments by Federal Reserve Chairman Powell on the future direction of interest rates last week, speeches by several Fed officials in the coming week will also be a focus of market attention. Powell has suggested that the Fed may take a cautious approach to future rate decisions, which will undoubtedly have an important impact on overall interest rate trends.
It is worth mentioning that the 12th annual Financial Stability Conference of the Cleveland Federal Reserve Bank will be held on Thursday and Friday, discussing the potential risks brought by the development of artificial intelligence and interconnected financial systems. In San Francisco, the QCon International Software Development Conference will continue for a week, focusing on technological innovation and software engineering, which usually measures trends that impact technology stocks and the broader digital economy.