Stocks fell on Tuesday, marking a pause in November’s gains as investors awaited results from AI chipmaker Nvidia (NVDA) and the release of Federal Reserve meeting minutes.
As of morning trading, the benchmark S&P 500 Index (^GSPC) fell about 0.4%, closing at highest level since AugustDow Jones Industrial Average (^DJI Innovations) and the technology-heavy Nasdaq Index (^IXIC) also fell, down about 0.3% and 0.9% respectively.
Retail performance has been disappointing for companies like Lowe’s (low), Best Buy(BBY), American Eagle Clothing (AEO) and Cole’s (korea association of science and technology) fell on Tuesday as a pullback in consumer spending clouded forecasts and hit sales.
Looking to the future, eyes will be on NVIDIA Quarterly Report Get an update on the fundamentals behind the artificial intelligence hype cycle after the company’s stock hit an all-time close on Monday.Expectations are high for the chip giant Has become the spokesperson of the artificial intelligence story in 2023after its last earnings report spurred a rally in the stock market.
Shares of Microsoft, which were flat in early trading Tuesday, hit a record high at the close on Monday after making a top executive hire. apparently evicted CEO of OpenAI. wall street The tech giant’s move is believed to boost its artificial intelligence prospects, which could get a boost if it ends up benefiting from the threatened exodus of OpenAI employees.
Investors are also watching the minutes of the Federal Reserve’s last rate-setting meeting and are debating whether the rate-cut optimism that drove the stock market rally was overdone. Commentary will be closely watched during the holiday-shortened week of economic data. Carefully scrutinize any hint of what policymakers are thinking.
OpenAI Legends: Could Sam Altman Return?
The drama at OpenAI continued on Tuesday, with investors in the ChatGDPT maker saying they hoped to lure ousted Sam Altman back to the company.
arrive BloombergThrive Capital, Khsola Ventures and Tiger Global Management are looking to protect their investments after more than two-thirds of OpenAI’s employees left report Threatened to resign due to Ultraman’s expulsion.
Microsoft(Microsoft Corporation) CEO Satya Nadella implying that he is open Although the company hired Altman to lead its in-house artificial intelligence division, certain stipulations must be met, including the resignation of the startup’s current board of directors and changes in OpenAI’s governance.
“Wherever Sam is, he’s working with Microsoft,” Nadella said in an interview on Monday.
as Julie Hyman, Yahoo Finance pointed out that this story has huge implications for investors, especially those who hold Microsoft stock. Microsoft shares closed at a record high on Monday as Wall Street welcomed Altman’s move to fully join the company. For now, though, if he stays.
Retail earnings disappoint… just ahead of Black Friday
It’s not been a great earnings season for some retailers, as a pullback in consumer spending has clouded forecasts and hit sales. Here’s a summary of what you should know:
Lowe’s (low): Shares of the home improvement giant fell about 3% Lowers full-year outlook Due to lower consumer spending. Third-quarter sales fell 13%, and comparable sales fell 7.4%. Lowe’s Chief Executive Marvin Ellison blamed the performance on DIY customers, who spent less than expected on big-ticket items. “DIY pressures had a disproportionate impact on our third-quarter performance,” he said. The Home Depot(HD) Also in the news.
Best Buy(BBY): The electronics retailer’s shares fell about 4% in early trading after it posted mixed earnings results, with net sales missing expectations.”Consumer demand is more uneven and less predictable,” Best Buy CEO Corrie Barry said in a press release. Yahoo Finance’s Brooke DiPalma has the full breakdown here.
American Eagle Apparel (AEO): although Third-quarter profit beats expectationsShares of the young adult retailer plunged nearly 20% on Tuesday after its fourth-quarter operating income forecast disappointed investors. The company said it expected fourth-quarter operating income to be between $105 million and $115 million, while analysts had expected $114 million. Abercrombie and Fitch (ANF) Shares fall as investors despite beating profit expectations and raising 2024 outlook Ask for more Judging from the company’s turnaround plan.
Cole’s (korea association of science and technology): Department store shares fell more than 10% Reported sales declineAlthough earnings beat expectations, net sales fell 5.2% and comparable sales fell 5.5%. The company lowered its full-year sales forecast by 2.8% to 4%, but raised its full-year EPS forecast.
Dick’s Sporting Goods (dicks): against other retailers, The stock price soared about 10% The move comes after the company reported better-than-expected third-quarter profits and raised its full-year forecast amid strong demand for sports gear. The strong results come as the company faces retail theft and a profit pullback in 2023.
Stocks open lower
The tech-heavy Nasdaq fell on Tuesday (^IXIC) led early losses, falling about 0.6% shortly after the opening bell, while the benchmark S&P 500 index (^GSPC) fell about 0.3%. Both indexes closed at their highest levels since August.
Dow Jones Industrial Average (^DJI InnovationsMeanwhile, the U.S. dollar index fell more than 0.1% as the 10-year Treasury yield fell about 1 basis point to around 4.41%.
Stock index futures fall, signaling pause in rally
Wall Street stocks closed lower on Tuesday before opening lower ahead of earnings reports from artificial intelligence chip maker Nvidia and the Federal Reserve.