Published on November 20, 20243 min read
Stock Futures and the Impact of Nvidia's Earnings
Stock futures on Wednesday night are showing a near flat trend as investors closely examine the crucial earnings release from Nvidia, the artificial intelligence darling. This development has significant implications for the markets and various indices. Dow Jones Industrial Average futures have lost 11 points, hovering just within reach of the flatline. S&P 500 futures and Nasdaq 100 futures have ticked down by 0.1% and 0.2% respectively. Investors are keenly observing after-the-bell earnings from Nvidia, the chipmaker that has been a star on Wall Street for over a year as a key AI beneficiary. Although the company surpassed expectations in the third quarter and issued strong guidance, its shares have still dipped more than 1%. Nvidia, which was added to the Dow this month and is now a member of all three major averages, slipped about 0.8% during Wednesday's session ahead of the report.As finance professor Aswath Damodaran from New York University's Stern School of Business pointed out on CNBC's "Closing Bell: Overtime", "The after-hours move tells you how much the expectations game on Nvidia has been ramped up. They don't just have to beat analyst estimates; they got to beat them by 10%."On the other hand, Snowflake witnessed a remarkable surge of more than 18% after the data analytics software company exceeded earnings expectations in the third quarter. This comes after a mixed day on Wall Street, where the S&P 500 ended near flat. The Dow jumped nearly 140 points, while the Nasdaq Composite ticked down 0.1%.Traders will be closely watching Thursday for economic data on jobless claims and existing home sales. Cleveland Federal Reserve President Beth Hammack, Chicago Fed President Austan Goolsbee, and Kansas City Fed President Jeff Schmid are also expected to provide remarks throughout the day.On the corporate earnings front, investors will be analyzing reports from Gap and Intuit, which are expected after the market closes.See the stocks making big moves after hours:Nvidia - The artificial intelligence darling slid nearly 2% despite exceeding expectations for the third quarter and providing strong guidance.Snowflake - The cloud stock soared 18% after beating earnings expectations for the third quarter and issuing strong guidance.Jack in the Box - The restaurant chain tumbled 5.6% after revenue for the fiscal fourth quarter came in below expectations.See the full list here.- Alex HarringStock futures are showing little change as futures tied to the Dow, S&P 500, and Nasdaq 100 were all near flat shortly after 6 p.m. ET.- Alex Harring
