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US stock futures traded broadly steady on Wednesday as investors counted down to Nvidia’s (NVDA) highly anticipated earnings report, seen as a pivotal test for the tech-driven summer rally.
Futures attached to the Dow Jones Industrial Average (YM=F), the S&P 500 (ES=F), and the tech-heavy Nasdaq 100 (NQ=F) all wavered along the flat line, on the heels of small gains for stocks on Wall Street.
All eyes are on Nvidia’s quarterly results, slated to arrive after the bell. Investor hopes for the world’s most valuable company are sky-high, with the AI chip giant expected to post record high revenue and adjusted profit for the second quarter.
But investors are watching for the fallout from President Trump’s curbs on China chip sales, which Nvidia forecast will deliver an $8 billion hit to its quarterly bottom line. More widely, the Big Tech bellwether’s earnings are a big test for the broader AI trade that has driven the bull market in stocks. Traders are pricing in a swing of roughly 6% — or about $260 billion — in Nvidia shares after its report, options showed.
On the trade front, the European Union is looking to fast-track the removal of tariffs on all US industrial goods, Bloomberg reported, clearing the way for an easing of duties on EU auto imports in return. Meanwhile, Trump’s hefty 50% tariffs on Indian products kicked in on Wednesday, in reprisal for India’s purchases of Russian oil. Crude prices oil (CL=F, BZ=F) held steady after a 2% slide the prior session.
Before the bell, Cracker Barrel (CBRL) stock continued to rise after the company bowed to calls from Trump and the public that it should never have scrapped its old logo. Cracker Barrel said in a statement that its “old” logo would be reinstated, and its redesign would be abandoned.
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Stock to Watch: PVH, owner of Tommy Hilfiger and Calvin Klein
I would keep an eye on PVH Corp. (PVH) this morning after a sizable earnings beat last night. The company also reiterated its full year earnings guidance, despite an expected $1.15 per share hit from tariffs.
The clothing company seems to have struck a positive nerve with recent apparel collaborations for Calvin Klein (Bad Bunny men’s underwear) and F1 (Tommy Hilfiger collection, tied to Apple’s (AAPL) F1 movie).
It has more deals in the works, CEO Stefan Larsson told me last night by phone.
I also thought his comments on tariffs were interesting:
“Tariffs are impacting everyone in the sector. We have 70% of our business in international, 30% is the U.S. Then we have the strength of Calvin Klein and Tommy Hilfiger, which really matters, meaning we have two of the most beloved brands in the market where we, for a number of years now, have leaned into the PVH platform, where we drive product strength, consumer engagement strength and strength in the marketplace, execution to drive growth with pricing power. So that will matter to us.”
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$1T stock rally in China leads brokers to limit trades
Correction fears have caused a number of Chinese stock brokers to put cash limits on purchase amounts in hopes of reducing exposure.
Bloomberg reports:
