US Stock Investors Wary Ahead of Nvidia Earnings: Markets Wrap

(Bloomberg) — US stocks were lower as investors digested the latest Ukraine-Russia tensions and steeled themselves for Nvidia Corp. earnings later Wednesday. The dollar climbed.

The S&P 500 slid 0.5% and the Nasdaq 100 fell 0.6%, paring an earlier loss of more than 1% following Ukraine’s missile strikes on Russia. Investors are awaiting Nvidia Corp.’s quarterly results after the market closes to gauge if the stock can continue its remarkable run. Shares of the world’s most valuable company erased much of an earlier 2.9% loss.

Trading in options signals the results will be the most important catalyst left this year — more than the Federal Reserve’s December meeting, according to Barclays Plc strategists. 

“The health of the market being driven by results of individual companies in itself points to a certain element of fragility,” said Subitha Subramaniam, chief economist at Sarasin & Partners. “Is it sufficient that they beat, is it sufficient that they beat by a big margin? We are hanging on every statement of the CEO.”

Bloomberg’s gauge of the dollar advanced 0.5%, rebounding from a three-day drop. US Treasuries struggled to erase losses while Wall Street’s fear gauge, the VIX, advanced for the second day, jumping as much as 15%.

Shares of Target Corp. fell after the retailer trimmed its full-year outlook due to flat sales and an inventory buildup. Company executives said US consumers spent less on nonessential items such as clothes and home products — a weaker third-quarter picture than the one provided by Walmart Inc. on Tuesday. 

Traders are also monitoring Donald Trump’s administration picks, especially his selection for the Treasury secretary role. Former Federal Reserve Governor Kevin Warsh and Apollo Global Management’s Marc Rowan are in contention, according to people familiar with the matter. Meanwhile, Trump tapped Cantor Fitzgerald LP Chief Executive Officer Howard Lutnick to lead the Commerce Department, a key role to facilitate his tariff and trade policies.

“As I look at the Treasury secretary race, I want to see exactly who is in that role because the tax policies, the debt limit all come back,” Ed Mills, Washington policy analyst at Raymond James, told Bloomberg Television. “We need to see exactly how that person has a relationship with the Federal Reserve, because monetary policy will quickly figure into all of this.”

Fed Governor Michelle Bowman said she wants to move cautiously on further interest-rate cuts as progress in reducing inflation has slowed. Swaps traders are betting on slightly better than a 50-50 chance of another rate cut at the US central bank’s Dec. 18 meeting.

Bitcoin set another all-time high, supported by a series of developments highlighting the deepening embrace of the digital-asset industry in the US under crypto cheerleader Trump.

Key events this week:

• Nvidia earnings, Wednesday
• Fed’s Lisa Cook and Michelle Bowman speak, Wednesday
• Eurozone consumer confidence, Thursday
• US existing home sales, initial jobless claims, Philadelphia Fed factory index, Thursday
• Eurozone HCOB Manufacturing & Services PMI, Friday
• US University of Michigan consumer sentiment, S&P Global Manufacturing & Services PMI, Friday

Some of the main moves in markets: 

Stocks

• The S&P 500 fell 0.6% as of 12:27 p.m. New York time
• The Nasdaq 100 fell 0.7%
• The Dow Jones Industrial Average fell 0.2%
• The MSCI World Index fell 0.6%

Currencies

• The Bloomberg Dollar Spot Index rose 0.5%
• The euro fell 0.6% to $1.0529
• The British pound fell 0.3% to $1.2645
• The Japanese yen fell 0.4% to 155.25 per dollar

Cryptocurrencies

• Bitcoin rose 1.9% to $94,094.96
• Ether fell 0.5% to $3,078.73

Bonds

• The yield on 10-year Treasuries was little changed at 4.39%
• Germany’s 10-year yield advanced one basis point to 2.35%
• Britain’s 10-year yield advanced three basis points to 4.47%

Commodities

• West Texas Intermediate crude rose 0.1% to $69.46 a barrel
• Spot gold rose 0.7% to $2,650.85 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Margaryta Kirakosian, Winnie Hsu and Jaewon Kang.

©2024 Bloomberg L.P.