It’s Nvidia’s (NVDA) earnings day, with the world’s hottest AI tech firm expected to report surging sales after the bell, although overly bullish investors could mean volatile stock trading after the chipmaker’s results come out; Target (TGT) shares are tanking in premarket trading following first-quarter results; minutes from the most recent Federal Open Market Committee (FOMC) meeting are due today, offering clues on the Fed’s rate-cut path; TJX shares are rising on a profit beat; Urban Outfitters (URBN) shares are gaining after the apparel retailer’s quarterly results beat analysts’ estimates. U.S. stock futures are little changed after hitting fresh records yesterday. Here’s what investors need to know today.
Shares of Nvidia (NVDA), which set a record closing high of $953.86 yesterday, are little changed in premarket trading ahead of its highly anticipated first-quarter earnings report due after the bell, which is expected to show that tech giants’ demand for artificial intelligence (AI) chips continues unabated. Some analysts have lifted their estimates and price targets for the AI star in recent days but are warning that investors overly bullish about Nvidia’s results could spark after-market trading volatility. Analysts polled by Visible Alpha now anticipate Nvidia’s revenue for the first quarter of fiscal 2025 to surge from last year to $24.74 billion, while net income is seen rising to $12.91 billion or $5.19 per share, with all three figures up slightly from last week’s projections. Comments from Chief Executive Officer (CEO) Jensen Huang on demand for Nvidia’s existing chips ahead of the rollout of cutting-edge Blackwell AI semiconductors will be in focus, especially as hyperscalers like Microsoft (MSFT), and Amazon (AMZN) make in-house chips. Guidance on second-quarter revenue will also be keenly watched.
Target (TGT) shares are down nearly 8% in premarket trading, even as the retailer’s first-quarter sales decline was in line with analysts’ estimates. The retailer posted quarterly revenue of $24.53 billion, down 3% year-over-year but matching estimates compiled by Visible Alpha, while earnings per share (EPS) of $2.03 beat expectations of $2.00. The company’s outlook showed that growth continues to be a challenge as it strives to attract consumers wary of inflation who are holding back spending, with the retailer guiding both second-quarter and full-year comparable sales to range from flat to 2% growth. CEO Brian Cornell attributed the results to “continued soft trends in discretionary categories.
Minutes from the most recent Federal Open Market Committee (FOMC) meeting due today at 2:00 p.m. ET could offer an insight into how Federal Reserve officials are looking at inflation, and whether a benchmark interest-rate cut may be more likely in the near future. Fed officials have kept the central bank’s benchmark interest rate higher for longer, sticking to their stance that they want to see inflation cool before easing. Recent data, however, showed that U.S. employers added fewer jobs than expected in April, breaking a three-month-long streak of hotter-than-expected jobs data, raising investors’ hopes that a cooling economy may put a rate cut on the table sooner rather than later.
Shares of The TJX Companies (TJX) are rising 1.3% in premarket trading as the off-price retailer’s fiscal first-quarter profit beat analysts’ estimates and its own forecasts. Results from the owner of T.J. Maxx, Marshalls and HomeGoods stores showed that the company continues to benefit from consumers looking for bargains amid elevated inflation levels. The company reported quarterly profit of $0.93 per share, beating analysts’ projections and surpassing its prior guidance of $0.84 to $0.86. Comparable store sales growth was up 3% year-over-year, while TJX had guided 2%-3% growth.
Urban Outfitters (URBN) shares are rising more than 2% in premarket trading after the apparel retailer posted quarterly results that came in ahead of analysts’ expectations amid strength in the company’s non-namesake brands. Sales at the Free People and Anthropologie high-end women’s brands rose by double digits year-over-year, offsetting a 13.7% slump in the namesake brand. Looking ahead, the company said it sees current-quarter net sales growth in the mid-single digits.
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