At the close NVDA will announce its quarterly results. Goldman Sachs calls the NVDA “as the most important stock on earth” given its massive influence on the broader indexes. Bloomberg writes NVDA is responsible for over 40% of the NASDAQ’s 100 gain this year.
NVDA is up about 28% in three weeks. The S & P 500 added about $4 trillion in capitalization between August 5 and August 23 and NVDA is about $840 billion or 20% of that gain.
As noted the other day, Citigroup writes the options market sees a potential move of 9% in either direction. To place this potential move into proper perspective, NVDA is the second most valuable company in the S & P 500, worth about $3.15 trillion. A nine percent move is almost $284 billion or more than the net worth of Chevron, broaching the value of Merck.
The shares have rallied about 150% this year and 1,000% from its October 2022 bear market low.
There are some who believe NVDA’s report will be more important than any recent Fed statement or geopolitical event.
Expectations are huge thus suggesting absolutely no room for error. NVDA surged 9% and 16% following its release of the past two earnings reports according to Bloomberg.
It is widely accepted the markets are extremely imbalanced. Bloomberg wrote that on Monday—the day which the NASDAQ declined about 1% and the S & P 500 fell about 0.4%–the advance decline was 11 to 1, the greatest disparity between the advance/decline line and performance of the typical stock since 2022.
Markets were relatively quiet yesterday. The NASDAQ nominally outperformed the other indices. Treasuries were insignificantly higher in yield across the spectrum.
Last night the foreign markets were mixed. London was down 0.09%, Paris up 0.60% and Frankfurt up 0.92%. China was down 0.40%, Japan up 0.22% and Hang Seng down 1.02%. Futures are flat. The 10-year is up 1/32 to yield 3.82%.
