US stocks fall as investors turn their attention to upcoming Nvidia earnings report
Of the 79% of S&P 500 companies that have reported earnings results so far, 80% beat profit estimates by a median of 7%
Lucas Jackson/Reuters
- US stocks dipped on Tuesday as investors await Nvidia's upcoming fourth-quarter earnings report.
- Nvidia is set to report its results after the market close on Wednesday.
- Better-than-expected fourth-quarter earnings results spurred Goldman Sachs to boost its S&P 500 price target.
US stocks moved mostly lower on Tuesday as investors continue to digest fourth-quarter earnings results and await Nvidia's results.
Walmart and Home Depot reported earnings on Tuesday, with both companies beating their revenue and profit projections. Walmart stock jumped 4% on Tuesday after it announced a 9% dividend hike and prepares for a 3-for-1 stock split, while Home Depot stock declined 2.5% on a sales growth outlook that was lower than analysts expected.
All eyes are now on Nvidia, which is set to report its fourth-quarter results after the market close on Wednesday. Nvidia has been largely responsible for spurring a rally in tech stock over the past year thanks to excitement towards artificial intelligence. Now, investors want to see how much financial strength is behind the AI hype.
Of the 79% of S&P 500 companies that have reported earnings results so far, 80% beat profit estimates by a median of 7% and 64% are beating revenue estimates by a median of 3%, according to Fundstrat.
Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Tuesday:
- S&P 500: 4,990.37, down 0.28%
- Dow Jones Industrial Average: 38,640.12, up 0.03% (+12.13 points)
- Nasdaq Composite: 15,699.13, up 0.48%
Here's what else is going on today:
- Goldman Sachs increased its S&P 500 price target for the second time since November to 5,200, representing potential upside of about 4% from current levels. The bank said strong earnings were behind the change.
- Here's what investors should watch for when Nvidia reports its earnings results on Wednesday, according to Wedbush analyst Dan Ives.
- A glut of supply of lab-made diamonds are likely to result in a price decline, according to analysts.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil fell 0.29% to $78.23 a barrel. Brent crude, the international benchmark, dropped 0.14% to $83.44 a barrel.
- Gold climbed 0.85% to $2,041.40 per ounce.
- The 10-year Treasury yield dropped one basis point to 4.26%.
- Bitcoin climbed 0.75% to $52,168.