U.S. stock futures, including those for the Dow Jones Industrial Average, S&P 500, and Nasdaq 100, showed slight declines ahead of Tuesday’s market open. Nvidia (NVDA), part of the “Magnificent Seven” group of top-performing tech stocks, saw a 2.3% drop on Monday as investors brace for what is being called the “most important tech earnings in years.”
Nvidia’s Earnings in Focus
Nvidia is scheduled to release its earnings report late Wednesday, with Wall Street expecting the AI powerhouse to report earnings of 65 cents per share on revenue of $28.7 billion, according to FactSet estimates. The significance of this earnings report has been highlighted by Wedbush Securities analyst Daniel Ives, who emphasized its importance in a recent research note.
Despite Monday’s decline, Nvidia remains near its recent highs, forming a base with an official buy point at 140.76. An early entry point for investors could be at 136.15.
Key Economic Data and Earnings Reports
This week’s key economic data will come on Friday when the Commerce Department releases the Federal Reserve’s primary inflation gauge for July. The core personal consumption expenditures (PCE) price index is expected to rise between 0.1% and 0.2%, potentially bringing the 3-month annualized core inflation rate down to 2% or lower for the first time since December.
In addition to Nvidia, several other major companies are reporting earnings this week, including Lululemon Athletica, Ulta Beauty, Lands’ End, Burlington Stores, Abercrombie & Fitch, Nordstrom, Gap, and Foot Locker.
Market Performance and Key Stocks to Watch
On Monday, the Dow Jones Industrial Average inched up 0.2%, setting a new record high, while the S&P 500 fell 0.3%, and the Nasdaq composite dropped nearly 0.9%. Notable stocks to watch include Birkenstock, Meta Platforms, Netflix, and Shake Shack. Dow Jones components like Amazon, Apple, Home Depot, IBM, and Microsoft are also on investors’ radar, with Home Depot and Meta approaching buy zones.
Oil Prices and Treasury Yields
Oil prices continued their upward trend, with West Texas Intermediate futures settling around $77 per barrel. Meanwhile, the 10-year U.S. Treasury yield rose slightly to 3.82%.
Investor Strategy
Investors should keep a close eye on the ongoing stock market action, especially with Nvidia’s critical earnings report on the horizon. Resources like IBD’s “The Big Picture” column and the “IBD Live” show are valuable for navigating current market conditions. The IBD MarketSurge lists, including “Breaking Out Today” and “Near Pivot,” are also essential tools for identifying stocks with bullish patterns and approaching buy points.
As the market continues to react to key earnings and economic data, staying informed and making strategic moves will be crucial for investors.
