Wall Street went on 'stand by' while awaiting Nvidia's results: New York had reopened stable and ended up just as stable, with the S&P500 gaining +0.004%.
After a brief spell in the red with -0.2%, the Dow Jones closed at +0.32% and the Nasdaq down -0.1%.
Shortly after the close, Snowflake's results (+$0.2/share instead of the expected $0.15, sales coming out 4.5% above consensus at $942M) were greeted with a gain of + 13% (around $146) while Palo-Alto, which published 2 minutes later, dropped -5% in a few seconds.
As for Nvidia, the stock which had gained +4% the day before fell by -0.8% at 10 p.m.: investors have been collecting for weeks as if they were sure to see profits come out above expectations.
And this is what has happened 7 times since the start of 2023.
Profits actually beat the consensus at $0.81 versus $0.76/share and turnover stood at $37.5 billion versus $37.08 billion, the margin amounting to 74.6% (a little down compared to the 2nd quarter when it stood at 75.4).
Management specifies that demand for 'Blackwell' systems – the most powerful computing instrument serving 'AI' – will exceed the firm's production capacities, at least until 2026.
The market's reaction suggests a 'non-event' since the title dropped between -2 and -2.5% (around $142), i.e. a capitalization of around $3,520 billion whereas the day before, Nvidia posted a capitalization of $3.6 trillion, following a rally of +$197 since January 1, which said a lot about the level of investors' expectations.
On the bond market, the geopolitical context continues to be ignored: still no 'risk-off' reflex (the decline in T-Bonds has nothing to do with 'stats' since there was nothing to the agenda this Wednesday) despite 'storm shadow' missile attacks on Russia.
T-Bonds increased by +3.8 points, towards 4.417%, the '2 years' showed +5 points towards 4.322%.
On the oil market, the barrel of WTI fell by 0.3% towards $69: an insignificant variation while US weekly crude stocks remain almost unchanged according to the IEA.
They amounted to 430.3 million barrels during the week of November 11, signaling an anecdotal increase of 0.5 million barrels compared to the previous week.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
