On Tuesday, November 19, 2024, Nvidia Corp. outside the company’s headquarters in Santa Clara, California, US. The mark of
David Paul Morris | Bloomberg | Getty Images
This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. As you see? You can subscribe. Here.
What you need to know today.
Markets digest Nvidia’s earnings.
American markets Rose on Thursday after digestion Nvidia’s Release of income. Its shares rose just 0.5 percent. Alphabet A 4.7% drop came on the US Department of Justice, which demanded that Google remove Chrome. Pan European Stokes 600 It rose 0.41%, ending a four-day losing streak. British sports retailer JD Sports It fell 15.5 percent after warning about its annual profit.
Bitcoin Inches Towards $100,000
Bitcoin It breached the $99,000 barrier on Thursday before pulling back to around $98,600. Cryptocurrencies have been on fire since Donald Trump won the election due to his crypto-friendly stance. Galaxy Digital CEO Michael Novogratz believes it’s “inevitable” Bitcoin will hit the $100,000 milestone, but “there will be a correction.”
The Fed may incur Trump’s wrath.
There are signs that US disinflation is slowing down. Couple that with Trump’s planned policies, which are seen as deflationary, and the US Federal Reserve may decide to leave interest rates unchanged. That, in turn, could anger Trump, who has lambasted Fed officials for not easing monetary policy faster during his first term in office.
No bluesky for billionaires.
Elon Musk’s growing prominence in American politics has increased Blusky’s popularity. That could put the social media platform, which operates like Musk’s X and Meta’s threads, in the crosshairs of acquirers. But Bluesky is “billionaire proof,” CEO Jay Graber told CNBC. “If someone buys or if the Bluesky company goes under, everything is open source.”
[PRO] Focus on Nvidia’s Blackwell.
Despite Nvidia’s revenue growth slowing each coming quarter, analysts are still bullish on the stock. According to Nvidia Chief Financial Officer Colette Kress, many also raised their price targets for Nvidia because of the chipmaker’s next-generation Blackwell chip, which is in such strong demand that supply is struggling to keep up. has been
The bottom line
with the Nvidia’s Off the earnings track, markets could return to regular programming after a month of frenzy that included the U.S. presidential election, a 25-basis-point rate cut by the Fed, Russia upping its nuclear rhetoric, just To mention a few incidents. .
US markets took things in their stride and made some solid moves on Thursday. gave S&P 500 There was an increase of 0.53 percent. Dow Jones Industrial Average climbed 1.06 percent. Nasdaq Composite It was mostly flat.
“I think the markets are finally finding their footing for two reasons: one is the recovery from the election hangover after the first week, and [two is] reaction to Nvidia’s earnings,” new CIO Saira Malik told CNBC.
Nvidia reported an incredible – by most standards – third quarter financial report. Its revenue almost doubled year over year and net income increased.
But we already know that the investor bar for Nvidia is somewhere out in the stratosphere. As impressive as Nvidia’s earnings have been, investors were still put off by a combination of the chipmaker’s slow pace of growth and a relatively conservative projection for its forward sales.
Shares of Nvidia rose just 0.5% after falling in premarket trading.
By way of comparison, let’s look at data analytics software. Snowflake. Its fiscal third-quarter revenue grew 28% year-over-year (note that Nvidia grew 94%) and the company’s net loss widened. But investors were so impressed that they sent its stock up 32.7 percent, giving Snowflake its best day ever.
This discrepancy may seem surprising. But this is not unusual for markets, where expectations dictate share movements.
If investors expect the company to take a big loss and it manages to earn a dollar in profits, the stock is likely to rise. An exaggeration, but still. This is just regular programming for markets.
— CNBC’s Jesse Pound, Samantha Saban and Alex Herring contributed to this report.
