Dow, S&P 500, Nasdaq fall as Nvidia earnings loom

On By Littum

U.S. stocks fell on Wednesday ahead of Nvidia’s ( NVDA ) earnings, seen as a crucial litmus test for AI trading that could set the direction of markets in the coming days.

The Dow Jones Industrial Average (^DJI) fell about 0.3%, while the benchmark S&P 500 (^GSPC) fell about 0.8%. Meanwhile, the tech-heavy Nasdaq Composite ( ^IXIC ) fell about 1.2% after a mixed day on Wall Street on Tuesday.

Investors are counting down to Nvidia’s after-hours results in hopes that the last of the “Magnificent Seven” tech megacaps to report can provide some new momentum for the stock. It’s seen as a reality check of just how important the AI ​​poster child (and its cousins) are to the two-year bull market.

The $3.61 trillion chipmaker, now the world’s most valuable company, has seen its stock rise 200% this year so far, hitting record highs after the presidential election. The European Central Bank has warned of a bubble in AI stocks amid high concentration and the risk that high earnings hopes will not be met.

Nvidia shares fell more than 2% after rising on Tuesday to lift the Nasdaq to a win. Traders are bracing for a potential post-earnings swing of 8% — or $300 billion in market value — in either direction, according to options markets.

Elsewhere in business, Target ( TGT ) muted its outlook for holiday season sales and earnings after posting a big quarterly profit and lowering its full-year expectations. The retail giant’s shares fell more than 21% after earnings.

Meanwhile, bitcoin prices (BTC-USD) rose more than 3% to hit a new record near $94,500 per token. Optimism for a crypto-friendly Trump White House has fueled the digital currency’s recent rally.

LIVE 5 updates

  • Josh Schafer

    The target falls more than 20% after reducing expectations for the year’s results

    Shares of Target ( TGT ) rose in early trading on Wednesday, falling more than 20% as the retail giant lowered its full-year expectations and missed Wall Street estimates for both earnings per share. share and turnover in the third quarter.

    Before the bell, Target said it now expects full-year earnings per share in a range of $8.30 to $8.90, below its previous range of $9.00 to $9.70. The new guidance also came well below that earnings per share at $9.61, which Wall Street had expected.

    The retailer also took a cautious stance on the outlook for the Christmas shopping season. Read more about Target’s quarter from Yahoo Finance managing editor Brian Sozzi here.

  • Josh Schafer

    Stocks mixed in the open, Nvidia slips

    U.S. stocks faltered on Wednesday ahead of Nvidia’s ( NVDA ) earnings, seen as a crucial litmus test for AI trading that could set the direction of markets in the coming days.

    The Dow Jones Industrial Average (^DJI) rose about 0.2%, while the benchmark S&P 500 (^GSPC) was flat. Meanwhile, the tech-heavy Nasdaq Composite ( ^IXIC ) fell about 0.2% after a mixed day on Wall Street on Tuesday.

    After rising Tuesday amid heightened optimism about the stock ahead of earnings, Nvidia shares fell more than 1% in early trading.

  • Laura Bratton

    Comcast to spin off TV networks including MSNBC, CNBC

    Comcast ( CMCSA ) is looking to play offensive in the ever-evolving media landscape, as the company said Wednesday it will spin off most of its cable networks into a new listed company called SpinCo.

    The stock jumped as much as 3.5% in premarket trading before paring those gains.

    The new venture will house the majority of NBCUniversal’s cable television networks, including USA Network, CNBC, MSNBC, Oxygen, E!, SYFY and the Golf Channel. Those networks collectively generated about $7 billion in revenue over the past 12 months, Comcast said in its announcement.

    Comcast’s Peacock streaming service and NBC broadcast network will remain under the parent company.

    “This transaction positions both SpinCo and NBCUniversal to play offense in a changing media landscape,” said Comcast President Mike Cavanagh.

    Read the whole story here.

  • Jenny McCall

    Good morning. Here’s what’s happening today.

    Financial data: MBA Mortgage Applications (Nov 15)

    Earnings: Nvidia (NVDA), Jack In The Box (JACK), Nio (NIO), Palo Alto Networks (PANW), Snowflake (SNOW), Target (TGT), TJX (TJX), Williams-Sonoma (WSM)

    Here are some of the biggest stories you may have missed overnight and early this morning:

    Why Nvidia earnings could be sink-or-swim for the bull market

    Target posts big earnings miss, cuts FY guidance

    Nvidia traders brace for potential $300 billion in earnings

    Comcast to spin off cable TV channels like MSNBC, USA

    ECB warns of a ‘bubble’ in AI stocks

    ‘We’re worried’: Walmart, Lowe’s warn of Trump tariff hike costs

    YF columnist Rick Newman: How Trump could be the next Biden

  • Brian Sozzi

    5 problems with Target’s earnings

    It wasn’t a good quarter for Target ( TGT ) — earnings misses, full-year profit warning and lagging performance relative to Walmart ( WMT ) .

    I also did not like the tone of business of managers on a call with journalists, of which I was one.

    Given that Target was hyping a turnaround a few months ago, this quarter is a setback for investors who were warming up to the story again.

    Here are five problems I saw in the results: