U.S. Stock Futures Mixed Ahead of Nvidia’s Earnings and Key Economic Data

U.S. stock futures and indices exhibited mixed trends as markets kicked off a week poised for pivotal corporate earnings and key economic data. Investors are closely eyeing Nvidia's upcoming third-quarter results, with the chipmaker regarded as a bellwether for the artificial intelligence (AI) boom driving this year's market surge.

The Nasdaq and S&P 500 rebounded slightly on Monday after last week’s losses, driven by gains in consumer goods, telecom, and tech stocks. Tesla led the rally with a 5.6% surge, fueled by reports of regulatory changes favorable to self-driving cars. However, the S&P 500's technology sector faced pressure as giants like Nvidia, Alphabet, and Microsoft recorded losses.

Nvidia’s earnings report, due Wednesday, is expected to gauge investor sentiment for tech stocks and the sustainability of the AI-fueled market rally. The company has seen its shares rise nearly 200% this year, even overtaking Apple to become the world's largest publicly traded company. However, reports of overheating issues with its new Blackwell AI chips have introduced potential headwinds.

Meanwhile, results from Walmart and Lowe’s will offer insights into consumer spending as the holiday shopping season nears. Thus far, 93% of S&P 500 companies have reported earnings, with 75% surpassing earnings-per-share (EPS) expectations and 61% beating revenue forecasts, according to FactSet.

Morgan Stanley raised its S&P 500 target to 6,500 over 12 months, supported by earnings growth and accommodating monetary policy. They project modest valuation adjustments despite elevated multiples and foresee sector-specific opportunities, such as favoring software over semiconductors. The firm highlights lighter regulations and improved sentiment post-election as potential market drivers, maintaining an overweight on financials but cautioning against consumer sectors due to tariff impacts.

Investor sentiment remains cautious following Federal Reserve Chair Jerome Powell's comments last week, which hinted at a slower path to interest rate cuts. The market also faces broader uncertainty tied to inflation data and ongoing monetary policy adjustments. Analysts predict a near-term pullback of 5% to 9% in the equity market due to macroeconomic and policy factors.

This week’s highlights include Nvidia’s earnings and updates from other major companies such as Walmart and Palo Alto Networks. Investors will also scrutinize manufacturing and unemployment data for signs of economic resilience. Despite recent volatility, analysts suggest that pullbacks in key stocks may present buying opportunities amid strong underlying demand for AI-driven innovation and consumer goods.

Data for Technical Analysis (1H) CFD US 500 [S&P 500]

Resistance : 5896.8, 5898.5, 5901.3

Support : 5891.2, 5889.5, 5886.7

1H Outlook  

Source: TradingView 

Buy/Long 1 If the support at the price range 5885.2 - 5891.2 is touched, but the support at 5891.2 cannot be broken, the TP may be set around 5898.6 and the SL around 5882.2, or up to the risk appetite.

Buy/Long 2 If the resistance can be broken at the price range of 5896.8 - 5902.8, TP may be set around 5907.3 and SL around 5888.2, or up to the risk appetite.       

Sell/Short 1 If the resistance at the price range 5896.8 - 5902.8 is touched, but the resistance at 5896.8 cannot be broken, the TP may be set around 5891.2 and the SL around 5905.8, or up to the risk appetite.

Sell/Short 2 If the support can be broken at the price range of 5885.2 - 5891.2, TP may be set around 5878.0 and SL around 5899.8, or up to the risk appetite.       

Pivot Points Nov 19, 2024 02:12AM GMT