Stocks Lack Direction Ahead of Nvidia Earnings: Markets Wrap
(Bloomberg) — Stocks in Asia fell while futures pointed to a muted open in Europe as traders were in wait mode before Nvidia Corp.’s results.
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The MSCI Asia Pacific Index dipped 0.5%, paring its near 1% advance in the previous session. Contracts for the Euro Stoxx 50 were up 0.4%. US futures eked out gains after Wall Street benchmarks overcame an escalation in Russia’s war against Ukraine to close higher on Tuesday.
Investors are looking to Nvidia to see if the world’s most valuable company can continue its remarkable run fueled by spending on artificial intelligence hardware. The chipmaker rose 4.9% on Tuesday. 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.
“Expectations are high, and the market will go into Nvidia’s earnings announcement positioned long, looking for a fifth consecutive quarterly earnings beat,” said Tony Sycamore, a market analyst at IG Australia. “Given Nvidia’s significant impact, its performance will undoubtedly drive sentiment in the tech sector and the broader market into year-end.”
Bloomberg’s dollar gauge was little changed following a three-day drop, suggesting a rally inspired by Donald Trump’s election win may have plateaued. The 10-year US Treasury yield was steady after falling two basis points in the previous session.
In Asia’s corporate news, Tokyo Gas Co. shares jumped the most since 1987 after Elliott Investment Management said it now held a major stake in the company. Seven & i also surged after a report the founding family of the retail giant is looking to complete a deal to take the company private by the end of its fiscal year in February.
Elsewhere in Asia, Chinese banks kept their benchmark lending rates unchanged, in line with expectations. Indonesia’s central bank is expected to keep interest rates on hold later in the day.
In the US session, the S&P 500 added 0.4%. The Nasdaq 100 climbed 0.7%. A gauge of the “Magnificent Seven” megacaps advanced 1.7%. US 10-year yields slid two basis points to 4.40%.
President-elect Donald Trump announced he was tapping Cantor Fitzgerald LP Chief Executive Officer Howard Lutnick to lead the Commerce Department, a key role in facilitating Trump’s tariff and trade policies.
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