Nvidia (NVDA) shares, which jumped 5% yesterday, are edging higher in premarket trading before the company’s highly anticipated earnings report after the closing bell; Target (TGT) shares are plunging after the retailer reported disappointing results and cut its full-year EPS outlook; U.S. stock futures are pointing slightly higher as investors prepare for retail and tech earnings reports and more political appointment announcements; bitcoin (BTCUSD) is trading higher as the cryptocurrency hovers around the $94,000 level, helping boost shares of MicroStrategy (MSTR); and Comcast (CMCSA) shares are moving higher as investors react positively to a report the media conglomerate is planning to spin off NBCUniversal cable TV networks. Here’s what investors need to know today.
1. Nvidia Stock Edges Higher Ahead of Earnings Report After Close
Shares of Nvidia (NVDA), which jumped 5% yesterday, are edging higher in premarket trading as investors prepare for the release of the chipmaker’s highly anticipated earnings report after markets close. Analysts expect revenue to grow 84% year-over-year to $33.29 billion and net income to jump to $17.47 billion or 70 cents per share, up from $9.24 billion or 37 cents per share last year, according to Visible Alpha. Nvidia shares gained steam ahead of the report, as analysts grew more bullish on the chipmaker’s prospects.
2. Target Stock Plunges as Retailer Posts Weaker-Than-Expected Results, Cuts Outlook
Shares of Target (TGT) are dropping 18% in premarket trading after the retailer missed estimates for sales and profit in its third-quarter earnings report. Target reported $25.67 billion in revenue and $854 million in net income, below analysts’ expectations. The retailer also lowered its expected full-year EPS outlook to a range of $8.30 to $8.90, down from $9.00 to $9.70 last quarter.
3. US Stock Futures Tick Higher Ahead of Tech, Retail Earnings
U.S. stock futures are pointing slightly higher ahead of the release of the closely watched Nvidia report. Nasdaq futures are 0.2% higher after gaining 1% in the prior session. Dow Jones Industrial Average futures are higher by a similar amount after the index fell 0.3% to close lower for the fourth straight day Tuesday. Investors are also weighing earnings reports from retailers Target and TJ Maxx parent TJX Companies (TJX). Treasury yields are moving higher as investors await the announcement of the nominee for Treasury Secretary. Crude futures are also higher and gold is little changed.
4. Bitcoin Continues Upward Trend, Helping MicroStrategy Stock
Bitcoin (BTCUSD) is more than 1% higher at around $93,500 after the largest cryptocurrency by market capitalization briefly crossed the $94,000 mark. The rise in the cryptocurrency’s price has been good for companies in that space, including MicroStrategy (MSTR), which recently added $4.6 billion in bitcoin to its portfolio and is 3% higher in premarket trading, building on recent gains. Since Donald Trump’s presidential election victory, bitcoin has soared around 35% amid optimism that the incoming administration will establish policies that broadly benefit the asset class.
5. Comcast Stock Gains on Reported Plan To Spin Off Cable Networks
Shares of Comcast (CMCSA) are 1% higher in premarket trading, down from larger overnight gains, after a report that the company is expected to announce plans to spin off its NBCUniversal cable TV networks. The move could mean the separation of assets including channels like MSNBC, CNBC, E!, Oxygen, and USA that together generated about $7 billion in revenue in the 12 months ended Sept. 30, The Wall Street Journal reported. The spinoff, which is expected to take about a year to complete, could help streamline the entertainment giant’s operations, and better position NBCUniversal’s remaining assets for growth.
