Sentiment on Wall Street could be guarded until Nvidia Corp’s (NASDAQ:NVDA) earnings are in the rearview mirror. The index futures are barely holding up early Wednesday. Given the absence of any major catalyst, stocks could tread water and could move about listlessly. That said, the retail space could see some strength, encouraged by Nordstrom, Inc.‘s (NYSE:JWN) earnings, while some positive tech earnings could bolster sentiment toward that space.
Market strategist Ed Yardeni said in Yardeni Research’s weekly preview that Nvidia earnings are a function of AI investments by mostly other large-cap tech companies, making the AI stalwart the fulcrum of not only the AI trade but a big portion of the entire stock market rally. “Nvidia’s earnings will begin to be supported by rising demand from other tech and many non-tech companies in the S&P 493,” he said.
| Futures | Performance (+/-) |
| Nasdaq 100 | +0.09% |
| S&P 500 | +0.06% |
| Dow | -0.01% |
| R2K | +0.05% |
In premarket trading on Wednesday, the SPDR S&P 500 ETF Trust (NYSE:SPY) rose 0.08% to $562, and the Invesco QQQ ETF (NASDAQ:QQQ) gained 0.11% to $477.28, according to Benzinga Pro data.
Cues From Last Session
U.S. stocks meandered back and forth across the unchanged line on Tuesday before ending higher, with IT stocks providing the thrust. After a negative start, the indices recovered after a report showed consumer confidence rose to the highest since February amid an improvement in inflation expectations. The averages went about in a listless manner and yet had enough momentum to close in the green.
The Dow Industrials scaled a fresh closing high, although the 30-stock blue-chip average could not break above its intraday high. The S&P 500 inched further toward its record close of 5,667.20 hit on July 16, while small-caps fell for a second straight session following their recent runup.
| Index | Performance (+/) | Value |
| Nasdaq Composite | +0.16% | 17,754.82 |
| S&P 500 Index | +0.16% | 5,625.80 |
| Dow Industrials | +0.02% | 41,250.50 |
| Russell 2000 | -0.67% | 2,203.00 |
Insights From Analysts:
Fund manager Louis Navellier expects the market to rally through the presidential election. “Historically, the stock market rallies into Presidential Election Day since the candidates are promising voters everything and anything,” he said, adding that “no taxes on tips and social security benefits are very popular, as are larger child tax credits, plus aid for first-time homeowners.”
Upcoming Economic Data
- The Energy Information is due to release its weekly petroleum status report at 10:30 a.m. EDT.
- Atlanta Fed President Raphael Bostic’s speech will make a public appearance at 6 p.m. EDT.
- The Treasury will auction five-year notes at 1 p.m. EDT.
See Also: How To Trade Futures
Stocks In Focus:
- Nordstrom rose about 8% in premarket trading following the company’s quarterly results.
- Other stocks moving on earnings are Ambarella, Inc. (NASDAQ:AMBA) (up over 23%), Box, Inc. (NYSE:BOX) (up over 7.50%), nCino, Inc. (NASDAQ:NCNO) (down over 12.5%), PVH Corp. (NYSE:PVH) (down over 8%), Semtech Corporation (NASDAQ:SMTC) (up over 4%)and SentinelOne, Inc. (NYSE:S) (up over 2%).
- Abercrombie & Fitch Co. (NYSE:ANF), Chewy, Inc. (NYSE:CHWY), Foot Locker, Inc. (NYSE:FL), J. M. Smucker Company (NYSE:SJM), Kohl’s Corporation (NYSE:KSS), Li Auto Inc. (NASDAQ:LI) and Patterson Companies, Inc. (NASDAQ:PDCO) are among the key companies reporting their earnings ahead of the market open.
- Those reporting after the close include Affirm Holdings, Inc. (NASDAQ:AFRM), Cooper Companies, Inc. (NASDAQ:COO), CrowdStrike Holdings, Inc. (NASDAQ:CRWD), Five Below, Inc. (NASDAQ:FIVE), HP Inc. (NYSE:HPQ), Nutanix, Inc. (NASDAQ:NTNX), NetApp, Inc. (NASDAQ:NTAP), Okta, Inc. (NASDAQ:OKTA), Salesforce, Inc. (NYSE:CRM) and Victoria’s Secret & Co. (NYSE:VSCO).
- Super Micro Computer, Inc. (NASDAQ:SMCI) is extending the weakness seen on Tuesday on the back of a short report.
Commodities, Bonds And Global Equity Markets:
Crude oil and gold futures extended their weakness and Bitcoin (CRYPTO: BTC) retreated below the $60K level. The yield on the 10-year Treasury note fell 1.1 basis points to 3.822%.
Asian stocks closed Wednesday’s session on a mixed note, while European stocks were firmer in early trading.
Read Next:
- Economist Peter Schiff Warns Fed May Be Committing Mistake By Lowering Rates In September As Dollar Index Falls To Lowest In Over A Year
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