Beat the street: Rate cut hopes wane; a tale of two retailers: Home Depot and Walmart
Traders brace for midweek when we get earnings from NVIDIA and FOMC minutes as rate cut hopes fade further into the horizon. Home Depot sees weak demand affecting its 2024 results.
Walmart raises its dividend, delivers an upbeat outlook, and says it will buy Vizio for $2.3 billion.
(AI VIdeo Summary)
The impact of waning rate cut hopes
In today's edition of "Beat the street", Angeline Ong talks about what's been happening in the stock market and some important earnings reports. She starts off by saying that hopes for rate cuts are going down, and this is affecting US stocks. One company that's been facing weak demand is Home Depot, which sells things for improving homes. Their results for 2024 have not been great because people are holding back on spending. On the other hand, Walmart, a big retail company, is doing well and has even raised the amount of money they give to shareholders. They're also buying a smart TV maker called Vizio for a lot of money.
NVIDIA to release earnings report
Ong goes on to talk about the overall state of the stock market. It seems like everyone is waiting for NVIDIA, a really important company, to release their earnings report. They are seen as a company that can forecast where the market is heading. Ong also discusses how Walmart's shares are doing well because of the good news, and she says that trading for Vizio will also become available.
When it comes to NVIDIA, they've been doing really well lately. In the past year, their stock has gone up by 220%, and so far this year it's gone up by 50%. This is because they're involved in the development of artificial intelligence, and many financial institutions have given them positive reviews. However, Ong does mention that some investors are starting to worry about how much money it costs to develop AI, rather than just focusing on its potential benefits.
Important FOMC minutes to be released
Lastly, Ong briefly talks about the currency markets, specifically the US dollar compared to the Chinese yuan. She also mentions that there will be some important minutes released by the Federal Open Market Committee (FOMC), which could affect the currency markets.
In conclusion, things in the currency markets are starting off slowly, as traders are waiting to see what happens with NVIDIA's earnings and the FOMC minutes before making any big moves.
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