Dow Jones futures showed a modest rise on Thursday morning, along with S&P 500 futures and Nasdaq futures, as trends improved from overnight lows. Nvidia (NVDA) initially dropped but later recovered after beating expectations, raising guidance, and announcing a $50 billion buyback.
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Sellers Hit Nasdaq Ahead Of Nvidia Results; Palantir, TDG, Evercore Hold Up
Other AI stocks such as Broadcom (AVGO), Nvidia chipmaker Taiwan Semiconductor (TSM), Advanced Micro Devices (AMD), Arista Networks (ANET) pared losses to a fraction.
Meanwhile, Salesforce (CRM), CrowdStrike (CRWD) and Okta (OKTA) all beat views Wednesday night, as well as storage plays NetApp (NTAP), Pure Storage (PSTG) and Nutanix (NTNX). Salesforce and Nutanix were big winners but the others retreated.
The stock market rally retreated Wednesday heading into Nvidia earnings, but did come solidly off intraday lows. NVDA stock retreated, along with most AI plays, but also pared losses significantly.
Dow Jones Futures Today
Dow Jones futures rose 0.5% vs. fair value, with Salesforce stock a Dow component. S&P 500 futures climbed 0.1%. Nasdaq 100 futures were up 0.1%. All were much improved from Wednesday evening, when Nasdaq futures fell solidly.
NVDA stock is a major S&P 500 and Nasdaq 100 member, with Broadcom, AMD and Arista also notable players, along with many other tech giants moving on Nvidia earnings.
The 10-year Treasury yield dipped to 3.83%.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
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Stock Market Rally
The stock market rally retreated Wednesday, as Super Micro and Nvidia led techs lower heading into Nvidia’s earnings report.
The Dow Jones Industrial Average slid 0.4% in Wednesday’s stock market trading. The S&P 500 index lost 0.6%, with SMCI stock easily the worst performer. The Nasdaq composite gave up 1.1%. The small-cap Russell 2000 fell 0.65%.
The Nasdaq closed below its 50-day line and briefly undercut the 21-day line. The Dow Jones and S&P 500 retreated more modestly, holding above key levels and near record highs.
Nvidia partner Super Micro Computer (SMCI) dived 19%, close to round-tripping a massive run from earlier this year. The AI server maker delayed a 10-K SEC filing a day after a short-sale report accused Super Micro of suspect accounting.
Foot Locker (FL), Abercrombie & Fitch (ANF) and Li Auto (LI) were among the big earnings losers. Neurocrine Biosciences (NBIX) plunged after its experimental schizophrenia drug lagged rivals’ treatments.
U.S. crude oil prices fell 1.3% to $74.52 a barrel. The 10-year Treasury yield rose one basis point to 3.84%.
ETFs
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) fell 1.2%, with Salesforce stock a big holding. The VanEck Vectors Semiconductor ETF (SMH) lost 1.7%. Nvidia stock is the No. one position in SMH, with Taiwan Semiconductor, Broadcom and AMD all notable members.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) slumped 2.5% and ARK Genomics ETF (ARKG) retreated 1.6%.
SPDR S&P Metals & Mining ETF (XME) shed 1.9%. SPDR S&P Homebuilders ETF (XHB) declined 0.7%. The Energy Select SPDR ETF (XLE) dropped 0.6% and the Health Care Select Sector SPDR Fund (XLV) edged up 0.1%.
The Industrial Select Sector SPDR Fund (XLI) lost a fraction. The Financial Select SPDR ETF (XLF) rose 0.25%.
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Nvidia Earnings
Nvidia earnings and revenue soared 152% and 122%, respectively, triple-digit year-over-year growth for a fifth straight quarter. But the size of the beat was relatively modest compared to the company’s blowout results of prior quarters.
The AI chip giant guided Q3 revenue slightly above consensus, and suggested a continued slowdown in growth, albeit to a still-hefty 79%.
Nvidia also announced a $50 billion additional buyback. The chip giant has $7.5 billion left on its existing authorization.
Amid reports that Blackwell processors would be delayed, Nvidia CEO Jensen Huang said on the earnings call that shipments of the next-generation AI chip would begin in volume in the fourth quarter.
Nvidia Stock, Other AI Hardware Plays
Nvidia stock fell nearly 4% in premarket action after being down more than 8% at Wednesday night’s lows. But shares are off their early morning highs as well.
NVDA stock declined 2.1% to 125.61 Wednesday. Getting above a recent range would offer a quasi-handle early entry. The official Nvidia stock buy point is 140.76, with 136.15 as another early entry.
Broadcom stock, Taiwan Semiconductor, AMD and Arista edged down after modest losses Wednesday night. All but AMD stock have been relatively close to buying opportunities.
Inside Nvidia’s Competitive AI Moat
Other Earnings
Salesforce earnings topped views with the software giant giving narrowly mixed guidance. CRM stock rose solidly early…
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