Expect a ton of earnings reports as third-quarter earnings season hits its stride.
A few could even move a sector or maybe even the market as a whole.
The biggie for the week, I’d argue, is Nvidia (NVDA) on Wednesday, November 16, after the market close. But we’ve also got big news in the retail sector with Walmart (WMT) due to report on November 15. And reports from Home Depot (HD) and Target (TGT) on November 15 and 16, respectively.
Nvidia’s stock has been pummeled in 2022: it’s down 44.5% for 2022 as of the November 11 close.
And Wall Street is expecting a dismal report. Analysts project earnings of 47 cents a share for the quarter, down from $1.01 a share in the third quarter of 2021.
But there’s some chance that all that bad news is priced into the stock already. Shares have participated in last week’s rally with NVidia up 15.34% for the week.
I think what the company says about the upcoming quarters will have more effect on the stock–and on the technology sector as a whole–than the already discounted numbers for the current quarter.
If the company offers investors any sense that the worst is over for chip sales, the stock will continue last week’s climb. And likely take the sector with it.
Investors will also be looking to see if Nvidia has a product announcement or two up its sleeve to match the very positive news from Advanced Micro Devices (AMD) on the speed and power of its new Genoa chip from the server market. (More bad news for Intel (INTC). Not that the company needed any more bad news.)
Besides the earnings news from Walmart, Target, and Home Depot, on Wednesday, the Commerce Department will publish its monthly retail sales report for October. Economists surveyed by Bloomberg estimate an increase of 1.0% after spending was flat during September.