Stocks opened lower as markets awaited for Nvidia (NVDA), an artificial intelligence hardware supplier, to report results.
Nvidia benefited from the U.S. enforcing export restrictions that aimed to severely limit China’s AI ambitions. Unfortunately, Nvidia and other chips still find ways to circumvent the embargo. Markets will watch for Nvidia
The shakeout from the OpenAI Board removing Sam Altman continued to bifurcate technology stocks. Majority owner Microsoft (MSFT) fell slightly on Tuesday, after closing at an all-time high. The software giant hired Altman. OpenAI faces further turmoil if its employees join Altman and Microsoft. However, if Microsoft fails to secure the intellectual property for ChatGPT on Bing, Alphabet (GOOG), whose shares rose nearly 61% from its 52-week low, could come out ahead in the AI race.
Retail Stocks Mixed
Lowe’s (LOW) slipped by around 2.5% after it indicated weakness in the do-it-yourself home renovation spending market. Comparable sales fell by 7.4%, compared to expectations of a 4.9% drop. Investors should brace for lower consumer discretionary spending. Inflation rates moderated but inflation levels are sharply higher than two years ago.
Consumers have lower disposable income and must prioritize their spending on necessities like food and shelter.
DICK’s Sporting Goods (DKS) reversed its ugly quarter by posting an unexpectedly strong third quarter. Total sales rose by 2.8% to $3.04 billion. EPS of $2.85 was far ahead of the consensus estimate of $2.46.