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US stocks fell on Wednesday ahead of Nvidia’s (NVDA) earnings, seen as a crucial litmus test for the AI trade that could set the direction of markets for days to come.
The Dow Jones Industrial Average (^DJI) was down about than 0.3%, while the benchmark S&P 500 (^GSPC) fell about 0.8%. Meanwhile, the tech-heavy Nasdaq Composite (^IXIC) slipped about 1.2%, following a mixed day on Wall Street Tuesday.
Investors are counting down to Nvidia’s results after the bell, hoping the last of the “Magnificent Seven” tech megacaps to report can provide some fresh momentum for stocks. It’s seen as a reality check on 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 surge 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 lofty earnings hopes won’t be met.
Nvidia’s share price was down more than 2% lower, after surging on Tuesday to buoy 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, going by options markets.
Elsewhere in corporates, Target (TGT) muted its outlook for holiday-season sales and profit after posting a big quarterly profit miss and slashing its full-year guidance. The retail giant’s shares sank as much as more than 21% after the earnings.
Meanwhile, bitcoin (BTC-USD) prices were up more than 3% hit a fresh record near $94,500 per token. Optimism for a crypto-friendly Trump White House has spurred the digital currency’s recent rally.
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Target falls more than 20% after cutting full-year profit outlook
Target (TGT) stock tanked in early trading on Wednesday, falling more than 20% as the retail giant slashed its full-year guidance and missed Wall Street’s estimates for both earnings per share and revenue in its 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 prior range of $9.00 to $9.70. The new guidance also came in well below the $9.61 earnings per share that Wall Street had expected.
The retailer also took a cautious stance on prospects for the holiday shopping season. Read more on Target’s quarter from Yahoo Finance executive editor Brian Sozzi here.
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Stocks mixed at the open, Nvidia slides
US stocks wavered on Wednesday ahead of Nvidia’s (NVDA) earnings, seen as a crucial litmus test for the AI trade that could set the direction of markets for days to come.
The Dow Jones Industrial Average (^DJI) was up about 0.2%, while the benchmark S&P 500 (^GSPC) hugged the flat line. Meanwhile, the tech-heavy Nasdaq Composite (^IXIC) slipped about 0.2%, following a mixed day on Wall Street Tuesday.
After surging on Tuesday amid increased optimism surrounding the stock ahead of earnings, Nvidia shares slid more than 1% in early trade.
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Comcast to spin off TV networks including MSNBC, CNBC
Comcast (CMCSA) is looking to play offense in the ever-evolving media landscape, as the company said Wednesday that it will spin off most of its cable networks into a new publicly traded 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 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 the 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.
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Good morning. Here’s what’s happening today.
Economic 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, slashes FY guidance
Nvidia traders brace for potential $300 billion earnings move
Comcast to spin off cable TV channels like MSNBC, USA
ECB warns of a ‘bubble’ in AI stocks
‘We’re concerned’: Walmart, Lowe’s warn on Trump tariff boost to costs
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5 problems with Target’s earnings
It wasn’t a great quarter for Target (TGT) — earnings miss, full year profit warning, and lagging performance versus Walmart (WMT).
I also didn’t like the tone around the business by execs on a call with reporters, of which I was one.
Considering Target hyped 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:
