Commenting on Nvidia’s strong earnings and today’s trading, Gorilla Trades strategist Ken Berman said:
Tech Sector Could Get A Boost From Nvidia's Strong Earnings
The major indices are mixed and flat at midday, recovering from a bearish overnight session that followed yesterday’s late-day plunge. The continued surge in the number of COVID cases and hospitalizations is still at the center of attention on the Street, with both global risk assets and U.S. stocks facing headwinds due to new containment measures, which will likely dominate the holiday season. Chipmaker Nvidia (NVDA, -1.5%) reported very strong earnings yesterday in after-hours trading, and even though stock opened lower, the tech sector could get another boost from the firm’s blowout numbers.
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While today’s key economic releases were mixed the positive surprises outweighed the weaker-than-expected new jobless claims number. Claims ticked higher to a 742,000, but continuing claims dropped by another 429,000, which is still way above the measures pre-pandemic levels. The Philly Fed Index was a tad lower than last month but the 26.3 reading is still much higher than the consensus estimate and it remains firmly in positive territory. Existing home sales smashed expectations in October, adding to this week’s positive housing market surprises.
Dow: 29,282, + 156 or 0.5%
S&P 500: 3,558 - 9 or 0.3%
Nasdaq: 11,860, + 58 or 0.5%
Russell 2000: 1,772, + 3 or 0.2%
Market breadth has been in line with the performance of the major indices this morning, with decliners outnumbering advancing issues by a 3-to-2 ratio on the NYSE at midday. Only 2 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 66 stocks hit new 52-week highs. The major indices have been hovering around their daily VWAPs (Volume-Weighted Average Price) throughout the morning session, pointing to a mixed and choppy afternoon. Consumer-related issues and tech stocks have been leading the morning bounce, but cyclical issues remain under pressure, so nervous and choppy trading could continue in the coming days on Wall Street. Stay tuned!