• Fed speakers and Nvidia earnings will be the focus this week.
• Nvidia is a buy with another huge beat-and-raise quarter on deck.
• The objective is a sale against a background of declining sales and gloomy prospects.
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U.S. stocks closed lower on Friday, with the S&P 500 and Nasdaq posting their biggest overnight losses in two weeks, as the post-election rally ended and investors worried about the path in interest rates.
This week, the S&P 500 fell 2.1%, while the tech-heavy Nasdaq Composite fell 3.1%. The blue-chip Dow Jones Industrial Average lost 1.2% during the period.
Source: Investing.com
The coming week is expected to be an eventful one as investors continue to assess the outlook for the economy, inflation, interest rates and corporate earnings.
On the economic calendar, flash PMI figures for the manufacturing and services sectors will draw attention on Friday, along with updates on the housing market.
That will be accompanied by a large list of Fed speakers, including district governors Jeffrey Schmid, Lisa Cook, Michelle Bowman and Beth Hammack all set to make public appearances.
Source: Investing.com
Expectations for a 25 basis point rate cut at the Fed’s December meeting stood at 63% on Sunday morning, according to the Investing.com Fed Monitor Tool.
Elsewhere, on the corporate earnings front, Nvidia’s (NASDAQ:NVDA) results will be the most important update of the week as the third-quarter reporting season winds down. Other notable names lining up to report earnings include Walmart (NYSE:WMT), Target (NYSE:TGT), TJX Companies (NYSE:TJX), Ross Stores (NASDAQ:ROST), Lowe’s (NYSE:LOW) ), Palo Alto Networks ( NASDAQ:PANW ) and Snowflake ( NYSE:SNOW ).
Regardless of which direction the market moves, below I highlight one stock that is likely to be in high demand and another that could see new downside. However, remember that is my time frame just now for the coming week, Monday November 18 to Friday November 22.
Nvidia is poised for significant gains this week as the tech giant prepares for another quarterly earnings report amid rising demand for its AI chips.
The Santa Clara-based company will report its third-quarter results after the market closes at 4:20 PM ET on Wednesday, with high expectations for another record performance. A call with CEO Jensen Huang is scheduled for 5:00 PM ET.
Market participants expect a significant swing in NVDA stock post-IPO, as evidenced by the options market, with a possible implied move of 9.8% in either direction.