• Fed speakers and Nvidia earnings will be in focus this week.
• Nvidia is a buy with another huge quarter of outperformance and leverage on the deck.
• The goal is to sell amid declining sales, and the outlook is expected to be pessimistic.
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US stocks closed lower on Friday, with the S&P 500 and Nasdaq posting their biggest single-day losses in two weeks, as the post-election rally lost momentum and investors worried about the path of interest rates.
Over the course of the week, the S&P 500 fell 2.1%, while the Nasdaq Composite, which is dominated by technology stocks, fell 3.1%. The Dow Jones Industrial Average lost 1.2% during this period.
Source: Investing.com
Next week is expected to be eventful as investors continue to evaluate the outlook for the economy, inflation, interest rates and corporate earnings.
On the economic calendar, flash Purchasing Managers’ Index (PMI) readings for manufacturing and the services sector will attract attention on Friday, along with updates in the housing market.
It will be accompanied by a large list of Fed spokespeople, with the likes of Governors Jeffrey Schmid, Lisa Cook, Michelle Bowman and Beth Hammack scheduled to make public appearances.
Source: Investing.com
Expectations for a 25 basis point rate cut at the Fed’s December meeting were 63% on Sunday morning, according to Investing.com’s Fed watch tool.
Elsewhere, in terms of corporate earnings, Nvidia ( NASDAQ:NVDA ) results will be the main update for the week as the third-quarter reporting season winds down. Other notable names set to report earnings include Walmart ( NYSE:WMT ) , Target ( NYSE:TGT ) , TJX Companies ( NYSE:TJX ) , Ross Stores ( NASDAQ:ROST ) , Lowe’s ( NYSE:LOW ) , and Palo Alto Networks (NYSE:LOW). NASDAQ:PANW), and Snowflake (NYSE:SNOW).
No matter which direction the market heads, below I’m highlighting one stock that’s likely to be in demand and another that could see a new decline. Remember though, my time frame is… only For next week, Monday, November 18 – Friday, November 22.
Nvidia is poised for big gains this week, as the tech giant prepares to deliver another superior quarterly earnings report amid growing demand for its artificial intelligence chips.
The Santa Clara-based company is scheduled to report its third-quarter earnings after the market close on Wednesday at 4:20pm ET, with expectations high for another record performance. A call with CEO Jensen Huang will take place at 5:00 PM ET.
Market participants expect a big swing in NVDA shares after the print, according to the options market, with a potential implied move of 9.8% in either direction.
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