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- 📈 Nvidia's 192% Gain
📈 Nvidia's 192% Gain
Super Micro Computer stock reverses course, Palo Alto Networks beats expectations, Delta expects higher profits, Billionaire Adani charged by US with fraud, Nvidia reports record earnings
Evelio Silvera
November 21, 2024
In partnership with
Good morning.
⚡ The Fast Five → Super Micro Computer stock reverses course, Palo Alto Networks beats expectations, Delta expects higher profits, Billionaire Adani charged by US with fraud, Nvidia reports record earnings
🔎 Market Trends → Wall Street ends mixed, Nvidia shares slip after the bell; US Futures Steady, Nvidia Slips After Earnings
And now…
⏱️ Your 5-minute briefing for Thursday, November 21, 2024:
MARKET BRIEF
Before the Open
As of market close 11/20/2024.
Pre-Market
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Fear & Greed
Markets in Review
Target Stumbles, Dow Inches Higher as Fed Signals Patience
The Nasdaq Composite dipped 0.1% to 18,966.1, while the Dow added 0.3% to close at 43,408.5. The S&P 500 remained flat at 5,917.1, with consumer discretionary lagging and healthcare leading.
The Big Picture:
Markets closed mixed on Wednesday as investors balanced a slew of earnings reports and cautious remarks from Federal Reserve officials. While some companies delivered robust guidance, others faltered, underscoring the uneven pace of economic recovery.
The Fed’s tone was guarded but hinted at eventual rate cuts, fueling hopes of a friendlier monetary landscape in 2025. Treasury yields ticked higher, with the 10-year at 4.41%, reflecting lingering inflation concerns. Meanwhile, commodities painted a mixed picture—WTI crude fell 0.6% to $68.95 per barrel, while gold rose 0.9% to settle at $2,653.50 per ounce.
Wells Fargo brightened the outlook, projecting the S&P 500 to hit 6,500–6,700 by 2025, buoyed by stronger economic growth and easing regulatory pressures.
Market Movers:
Target (TGT) plunged 21.97%, its steepest one-day drop in years, after slashing its earnings outlook. Weak consumer spending, particularly in discretionary categories, hammered the retail giant. This underscores broader caution in retail heading into the holiday season.
Keysight Technologies (KEYS) soared 8.78% after issuing an upbeat Q1 outlook and topping earnings expectations. The company’s focus on cutting-edge test and measurement tools is paying dividends amid growing demand in electronics.
Super Micro Computer (SMCI) tumbled 8.74%, leading Nasdaq decliners. Investors reacted sharply to the AI server maker’s softer-than-expected outlook, signaling cooling enthusiasm in the AI space.
CoStar Group (CSGP) rose 5.8%, riding a wave of optimism as its digital real estate tools gain traction in a stabilizing housing market.
What They’re Saying:
"I still see the direction of the appropriate policy rate path to be downward, but the magnitude and timing of rate cuts will depend on incoming data," said Fed Governor Lisa Cook, tempering rate cut expectations.
WHAT WE’RE WATCHING
Events
Thurs. Nov 27: Dept. of Labor - Unemployment Claims - 8:30am
Why You Should Care: Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy.
Earnings Reports
Today: Intuit, Deere & Co, Ross Stores, Warner Music Group
Tomorrow: Buckle, Soho House, Destination XL Group
MARKET BRIEF
Leading News
Nvidia Powers Ahead with Blackwell Chips and Record Earnings
Why it matters:
Nvidia’s (NVDA) next-gen AI chips and blowout Q3 earnings reaffirm its leadership in the AI boom. With demand surging and the "age of AI" accelerating, Nvidia remains a cornerstone of tech innovation.
Zoom Out:
Nvidia continues to defy gravity, reporting Q3 revenue of $35.1 billion—a 112% year-over-year surge in its Data Center division alone. CEO Jensen Huang declared the “age of AI in full steam,” propelled by the company’s cutting-edge Hopper and Blackwell GPUs.
Despite minor supply constraints, Nvidia's Q4 revenue forecast of $37.5 billion signals robust growth. The company’s chips are powering next-gen foundation models for players like OpenAI and Microsoft, solidifying Nvidia as the go-to provider for AI infrastructure.
With 192% year-to-date stock gains, Nvidia has left rivals AMD (AMD) and Intel (INTC) in the dust. Tariff concerns loom under a Trump presidency, but Nvidia’s scale and pricing power make it a formidable player, even under regulatory pressure.
Deep Dive:
Earnings Blowout: Q3 EPS hit $0.81, beating Wall Street’s $0.74 estimate. Revenue jumped from $33.2 billion to $35.1 billion, powered by AI’s rapid adoption.
Blackwell Momentum: Production is scaling, with sales expected to exceed initial forecasts. Supply chain limits are the only bottleneck to higher shipments.
Gaming Growth: Gaming revenue grew to $3.3 billion, outpacing analyst expectations of $3 billion—a sign that Nvidia’s diversification remains intact.
Market Pulse:
"The age of AI is here, and Nvidia is both the engine and the fuel," said Huang, as the company continues to dominate foundational AI technologies.
Bull’s Take:
Nvidia is cementing its role as the backbone of AI innovation. With explosive revenue growth and a product roadmap geared toward generative AI, NVDA remains a high-conviction play for long-term investors.
Headlines
Billionaire Gautam Adani charged in New York with massive fraud, bribery scheme (link)
Why Super Micro Computer Stock Reversed Course Today (link)
Palo Alto Networks’ beat and raise wasn’t enough for investors. (link)
Disney is Still Going Full Steam Ahead on its Cruise Division (link)
Delta expects higher profits thanks to high-end travel and ‘resilient economy’ (link)
Despite slowing sales, automakers are expanding electric vehicle models (link)
CRYPTO
Fear & Greed
Headlines
DAILY SHARE
On the Socials
*Hat-tip to WorkRetireDie
Wall Street Can’t Hold a Note Like This
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