U. S. stock futures are trading lower this morning as investors await crucial earnings reports from Nvidia and several major retailers. This follows a week of record highs for the major indexes, fueled by optimism surrounding artificial intelligence and a resilient economy. However, rising bond yields and ongoing geopolitical concerns are injecting caution into the market.
Nvidia's earnings report, due Wednesday, is the week's main event. Analysts expect the chipmaker to announce revenues near $78 billion and earnings per share of around $1.77. However, simply meeting expectations may not be enough to sustain the stock's high valuation. Investors will be closely watching Nvidia's forward guidance, particularly regarding demand for its new Blackwell and Rubin platforms and its data center revenue. Commentary on sales in China will also be scrutinized.
Retail earnings will also be in focus this week, with reports from Home Depot, Target, and Walmart. These reports will provide insights into the health of the U. S. consumer and the impact of inflation on spending habits. Investors are keen to see if lower-to-middle-income consumers are trading down, delaying purchases, or cutting back on discretionary spending.
