S&P futures are up 0.1% in Wednesday morning trading after U.S. equities finished mostly higher on Tuesday, driven by strength in big tech, particularly NVIDIA (NVDA-US) ahead of its earnings today. Aerospace and defense, precious metals, and select household products outperformed, while home-improvement retailers, tax prep, banks, machinery, and apparel lagged. Treasuries weakened across the curve, the Dollar index rose 0.4%, gold fell 0.2%, Bitcoin futures gained 0.8%, and WTI crude rose 0.6%.
Markets remain in a holding pattern ahead of NVIDIA’s Q3 results, with expectations of strong AI-driven demand tempered by concerns over stretched positioning and Blackwell ramp timing. Geopolitical headlines included reports that Putin is open to ceasefire talks with Trump under conditions, while Marc Rowan is reportedly the top contender for Treasury Secretary.
No major U.S. economic data is scheduled for today, but Fed officials Barr, Cook, and Bowman are set to speak. Upcoming macro highlights include initial claims, the Philly Fed survey, and existing home sales on Thursday, with PMIs and consumer sentiment on Friday.
Key Corporate Highlights
- Target (TGT-US): Missed and cut FY25 EPS guidance below expectations, citing ongoing cost pressures and unique challenges.
- Delta Air Lines (DAL-US): Reaffirmed Q4 guidance and guided FY25 revenue growth in line with estimates.
- Keysight Technologies (KEYS-US): Beat earnings and raised guidance, noting stable market conditions.
- XP Inc (XP-US): Net income in line but cut dividend.
- Dolby Laboratories (DLB-US): Posted mixed results and guidance, highlighting positive momentum into 2025.
- Azek Co (AZEK-US): Beat expectations for both Residential and Commercial segments, with guidance above consensus.
- Powell Industries (POWL-US): Fiscal Q4 EPS beat with upbeat outlook commentary, though revenue fell short; stock remains a significant YTD gainer.
- La-Z-Boy (LZB-US): Beat expectations, noting softness in furniture spending but outperforming the industry.
- Comcast (CMCSA-US): Set to announce plans to spin off NBCUniversal’s cable TV networks.
U.S. equities closed mostly higher on Tuesday, with the Dow up 0.28%, the S&P 500 rising 0.40%, the Nasdaq gaining 1.04%, and the Russell 2000 climbing 0.80%. Big tech led the rally, particularly NVIDIA (ahead of earnings) and Tesla, while sectors such as entertainment, industrial metals, aerospace and defense, household products, and cruise lines outperformed. On the other hand, home improvement retailers, banks, insurance, tax software, machinery, and China tech lagged.
Treasuries were firmer with a flattening curve, while the Dollar index fell 0.1%. Gold finished up 0.6%, Bitcoin futures gained 1%, and WTI crude settled 0.1% higher after Monday’s strong rally. The market saw subdued activity as investors awaited major catalysts, including NVIDIA’s earnings, potential Treasury Secretary announcements, and November payroll data post-Thanksgiving.
Housing starts for October fell more than expected, primarily due to hurricane impacts, while permits missed expectations, hitting their lowest pace since July. Kansas City Fed President Schmid noted growing confidence that inflation is on track to meet the 2% target but said the pace of rate cuts remains uncertain. Thursday’s economic data includes jobless claims, the Philly Fed survey, and existing home sales, with flash PMIs and University of Michigan consumer sentiment wrapping up the week on Friday.
Company News by GICS Sector
Information Technology
- NVIDIA (NVDA-US): Continued its rally ahead of earnings, supported by optimism despite regulatory scrutiny.
- Super Micro Computer (SMCI-US): Gained 31.2% after announcing BDO USA as its independent auditor and filing a compliance plan with Nasdaq.
- Symbotic (SYM-US): Surged 27.7% on an outsized revenue and EBITDA beat, driven by system completions and strong Q1 growth expectations.
- Hewlett Packard Enterprise (HPE-US): Justice Department reportedly considering a challenge to its planned $14B acquisition of Juniper Networks (JNPR-US).
- Juniper Networks (JNPR-US): Declined 1.5% on concerns about the DOJ potentially blocking the HPE acquisition.
Consumer Discretionary
- Lowe’s (LOW-US): Fell 4.6% despite a Q3 beat and raised FY guidance, as analysts noted high expectations and implied Q4 deceleration.
- Academy Sports & Outdoors (ASO-US): Declined 1.2% after being downgraded to “Hold” at Truist, citing potential tariff impacts and limited near-term upside in hunting demand.
Health Care
- Medtronic (MDT-US): Dropped 3% despite revenue and EPS beats, with weakness in its Medical Surgical segment and challenges in Korea and physician strikes.
- Incyte (INCY-US): Fell 8.3% after pausing enrollment in a Phase 2 study due to preclinical toxicology findings.
- Labcorp (LH-US): Down 1% as EVP and CFO Glenn Eisenberg announced his retirement, with Julia Wang set to succeed him in December.
Industrials
- Jacobs Solutions (J-US): Declined 4.9% despite meeting guidance expectations. Revenue fell short, but analysts highlighted stable growth in its I&AF division, improved margins, and a strong backlog.
Consumer Staples
- Walmart (WMT-US): Rose 3% after beating earnings expectations and raising FY guidance, driven by strong U.S. comps (+5.3%) and continued share gains.
- Energizer Holdings (ENR-US): Gained 9.1% after reporting a fiscal Q4 revenue and EBITDA beat, raising FY25 guidance, and announcing a 7.5 million share repurchase program.
- Kraft Heinz (KHC-US): Fell 1.6% after Piper Sandler downgraded it to “Neutral,” citing weak retail momentum and flagging Lunchables’ declining traction.
Communication Services
- Trip.com Group (TCOM-US): Up 2.3% on better-than-expected Q3 revenue and EBITDA, driven by strength in domestic and international travel recovery.
Materials
- Valvoline (VVV-US): Dropped 8.7% after missing comp sales expectations and guiding FY25 EPS and revenue below consensus.
Eco Data Releases | Wednesday November 20th, 2024
No Releases Today
S&P 500 Constituent Earnings Announcements | Wednesday November 20th, 2024
Data sourced from FactSet Research Systems Inc.
