Nov 21, 2024 (MENAFN via COMTEX) --
(MENAFN - Live Mint) *
Target plunges after muted holiday-quarter sales forecast
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Nvidia slips before results due after market close
(Updates prices and market activity to the close)
By Abigail Summerville and Lisa Pauline Mattackal
Nov 20 (Reuters) -
The tech-heavy Nasdaq closed lower on Wednesday, taking a break from the prior session's rally as investors worried about escalation of Russia-Ukraine tensions and weak results from Target, while awaiting earnings from megacap Nvidia.
The Dow and S&P 500 ticked up late in the session. The Dow closed higher and the S&P 500 was close to unchanged.
Stocks fell after a report said Ukraine fired long-range British Storm Shadow missiles into Russian territory. On Tuesday, Ukraine launched U.S.-made ATACMS missiles into Russia, and Russia announced it had lowered the threshold for nuclear action.
Wall Street's "fear gauge" jumped to 18.79 before easing slightly, still at its highest since the Nov. 5 U.S. presidential election.
"It's gotten a little more defensive today after a strong rally yesterday from growth stocks and the tech sector," said James Regan, Director of Wealth Management Research at D.A. Davidson
"Maybe there's a conservative view ahead of Nvidia earnings or a broader reaction from Target's earnings which is a consumer bellwether. There are also more geopolitical concerns with tensions in Ukraine and Russia and the U.S. evacuating embassies," Regan said.
AI leader Nvidia fell ahead of its results that are scheduled for after the bell. The index heavyweight dragged down the Information Technology sector and the tech-heavy Nasdaq.
Target plunged after the retailer forecast holiday-quarter comparable sales and profit below Wall Street expectations following a third-quarter estimate miss.
The consumer discretionary index was the biggest sectoral decliner.
Growth stocks like Tesla and Amazon also fell.
According to preliminary data, the S&P 500 gained 0.31 points, or 0.00%, to end at 5,916.83 points, while the Nasdaq Composite lost 22.38 points, or 0.12%, to 18,965.59. The Dow Jones Industrial Average rose 138.98 points, or 0.32%, to 43,407.92.
All eyes remained on Nvidia, which has nearly tripled in value this year, accounting for about 20% of the S&P 500's returns over the last 12 months, according to BofA Global Research.
However, given the lofty earnings expectations, the company could struggle to impress investors. Options traders are primed for a nearly $300-billion swing in Nvidia's market value after the results.
"We're starting to see commentary from larger companies that have been deploying capital in the AI, tech spend space talking about examples of how that spend is converting to either higher revenue or cost savings. That bodes well for companies like Nvidia that are on the picks and shovels side of that tech, AI spend trade," said Bill Merz, head of Capital Markets Research for U.S. Bank's asset management group.
Cryptocurrency stocks ticked higher as bitcoin jumped above $94,000, with MicroStrategy and MARA Holdings both up.
Traders have increased bets on the U.S. central bank leaving interest rates unchanged at its December meeting in the wake of strong economic data and signs of persistent inflation.
(Reporting by Abigail Summerville in New York; additional reporting by Lisa Mattackal and Purvi Agarwal in Bengaluru; Editing by David Gregorio)
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COMTEX_460033216/2604/2024-11-21T06:55:44
