The European stocks extended gains yesterday while the US markets consolidated slightly below their all-time high levels. A successful $69bn sale of US 2-year debt contributed to the positive market sentiment. Additionally, the price of US crude oil eased to $76 per barrel and is currently consolidating around this level.
However, tensions in the Middle East and Libya caused gold to rally to its 200-DMA. Despite this, gold failed to break resistance at this level and dropped by almost 2% as concerns about global growth and the slow Chinese recovery resurfaced.
Today, investors are eagerly awaiting the earnings report from Nvidia (NASDAQ:), which is scheduled to be released after the closing bell. Nvidia, with a 6% weight in the S&P 500, has been a major contributor to the index’s gains this year.
Nvidia’s Earnings Expectations
Nvidia is expected to announce record-breaking Q2 results, with the company’s own revenue forecast projecting $28bn in sales for the quarter. Analysts’ expectations range from $27bn to $32bn, with some suggesting that sales could reach $31.69bn, representing a 75% increase from the previous quarter.
While the outlook for Nvidia is positive, there are risks to consider. Higher expectations are harder to exceed, and any shortfall could disappoint investors. Additionally, competition from companies like AMD, Qualcomm, and Intel poses a threat to Nvidia’s market share and profit margins.
Despite these risks, Nvidia has a track record of surpassing its own forecasts and delivering strong results. However, investors should remain cautious as any unexpected news could lead to significant volatility in the stock price.
Overall, Nvidia’s earnings report is highly anticipated, and a strong performance could propel the stock to new heights. However, investors should be prepared for potential downside risks and market fluctuations following the earnings announcement.