Stock futures are pointing to a slightly higher open this morning as the market looks to add to Tuesday’s gains; Nvidia is due to release its quarterly results after the closing bell, with analysts expecting another blockbuster report from the AI chipmaker; Salesforce is also set to report earnings later Wednesday, amid investor worries about the impact of AI on the health of software companies; President Donald Trump addressed a number of key economic issues in his State of the Union speech; and Cava Group shares are soaring after the restaurant chain’s earnings topped Wall Street expectations. Here’s what you need to know today.
Stock Futures Rise Ahead of Nvidia Earnings
Stock futures are higher as investors prepare for Nvidia’s earnings report later today and digest President Donald Trump’s State of the Union speech. Futures tied to the Dow Jones Industrial Average and S&P 500 were recently up 0.3%, while Nasdaq futures added 0.5%. The major indexes surged on Tuesday, rebounding from a steep decline to start the week that was fueled by uncertainty about tariffs and concerns about the sustainability of the AI boom. Bitcoin, which fell as low as $62,500 yesterday, was at $66,000 this morning. Gold futures were up 0.5% at $5,200 an ounce, while WTI futures, the U.S. crude oil benchmark, rose 0.8% to $66.15 per barrel. The yield on the 10-year Treasury, which influences borrowing costs on a range of consumer loans, was at 4.06%, up from 4.03% at Tuesday’s close.
Nvidia Results Put Spotlight on AI Trade
Investors are bracing for results from Nvidia (NVDA), the chipmaker at the heart of the AI boom. Nvidia earnings have been a bellwether for the AI trade, and analysts are anticipating the world’s most valuable company to deliver another quarter of huge sales growth. Nvidia is expected to report adjusted earnings per share for its fiscal fourth quarter of $1.52, with revenue jumping 67% from a year earlier to a record $65.87 billion, according to estimates collected by Visible Alpha. Investors have grown increasingly concerned about whether massive AI spending levels will pay off and whether a series of circular deals between major tech companies indicate that a bubble is forming. Market participans will be eager to hear CEO Jensen Huang’s views on the outlook for Nvidia and the broader AI business. Nvidia shares, which are down about 9% from their all-time high in October, were up nearly 1% in premarket trading Wednesday.
Trump Hits Key Economic Issues in Speech
President Trump focused on a number of economic issues in his State of the Union address, including savings, housing, tariffs, healthcare and consumer prices. Trump called for the creation of 401(k)-type savings plans for workers who don’t receive a retirement match from their employers, offering a $1,000 yearly contribution from the federal government. He reiterated his call for a ban on housing purchases by institutional investors, which he said could help lower housing prices. Despite the recent Supreme Court ruling against a significant swath of his tariffs, Trump said that he still believed that tariffs could eventually replace the income tax as a source of revenue. Trump touted his proposal to shift healthcare subsidies from insurers to individuals through health savings accounts. He also highlighted progress on inflation, noting that core inflation was at its lowest levels in five years. The Consumer Price Index for January showed that core inflation was at its lowest levels since March 2021. “Our nation is back: bigger, better, richer and stronger than ever before,” Trump said.
Salesforce Earnings Come Amid Software Slump
Earnings from Salesforce (CRM) are scheduled for release after markets close today as the software industry slumps on fears that its products will be overtaken by AI tools. Salesforce is projected to report adjusted earnings per share of $3.05 on a 12% year-over-year jump in revenue to a record $11.18 billion for the fourth quarter, according to estimates compiled by Visible Alpha. Despite the stock losing about a third of its value so far this year, analysts have remained largely optimistic about the firm’s growth, with the average price target implying growth of around 75%. Salesforce shares were down less than 1% ahead of the opening bell.
Cava Shares Pop on Strong Results
Shares of Cava (CAVA) surged in premarket trading after the restaurant chain reported better-than-expected fourth-quarter results. The Mediterranean-themed restaurant posted adjusted earnings per share of $0.04 on revenue of $273 million, both coming in above the consensus analyst estimates compiled by Visible Alpha. The restaurant chain’s same store sales grew by 0.5% for the quarter, where the analyst consensus had called for a 1.1% decline. The chain also revealed it opened 24 new restaurants in the year’s final quarter. Cava shares were up 10% recently.
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