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Traders work on the floor of the New York Stock Exchange during morning trading on August 23, 2024 in New York City.
Michael M. Santiago | Getty Images
U.S. stock futures were flat Tuesday night as investors waited in anticipation for chipmaker Nvidia's quarterly earnings announcement Wednesday after the bell.
Futures tied to the Dow Jones Industrial Average inched down 32 points, or 0.08%. S&P 500 futures and Nasdaq 100 futures dipped 0.1% and 0.3%, respectively.
In after-hours action, Nordstrom advanced 7% after the retailer posted adjusted earnings in the second quarter that surpassed expectations. Semiconductor developer Ambarella jumped 20% on upbeat revenue guidance in the third quarter. PVH, owner of Calvin Klein, slumped 7% on a disappointing outlook for the current quarter.
During Tuesday's trading session, the broad market index and tech-heavy Nasdaq Composite both added nearly 0.2%. Nvidia posted a roughly 1.5% gain that helped buoy both indexes. The 30-stock Dow, meanwhile, added just 0.02% — just enough to post a second straight record close.
Wall Street is keeping an eye on Nvidia, the leader of the artificial intelligence trade, to gauge the broader sustainability of the broader tech and AI trade. The semiconductor giant has surged 159% in 2024, raising questions of how much more room there is for the stock to run.
Focal points for investors include the delivery schedule for Nvidia's Blackwell chips and an update on the demand for AI.
"It's hard to say that there's not a lot of optimism priced into the market tomorrow," Erin Browne, Pimco managing director and portfolio manager, told CNBC's "Closing Bell" on Tuesday.
To be sure, Browne noted that other AI stocks are trading around 10% below their all-time highs. Nvidia's current valuation isn't expensive relative to the five-year average, she added.
"So while certainly there's a lot of optimism priced in, I think that they still can deliver upside and surprise the market to the upside," Browne said.
Elsewhere on the earnings front, Bath & Body Works, Foot Locker and Kohl's are some of the names slated to report their quarterly results Wednesday morning. In addition to Nvidia in the afternoon, investors will also be looking toward Salesforce's earnings.
Nvidia earnings ‘pretty important,’ says equity strategist
Nvidia's upcoming quarterly results are "pretty important," according to Citi's Scott Chronert.
"There's no question from a basic index weighting perspective the importance of Nvidia is very clear on this," the firm's U.S. equity strategist told CNBC's "Squawk on the Street," citing the AI darling's influence on the mid-year gains of the S&P 500. In June, Nvidia's weighting in the broad market index had reached 6.6%, per FactSet.
In terms of whether an AI spending and AI productivity enhancing tailwind is taking place, Chronert believes more evidence is needed. "It won't be the earnings result per se as much as it is what we're talking to in terms of guidance going forward," he added.
Nvidia is set to report its second-quarter earnings for fiscal 2025 after market close on Wednesday. Shares of the company have surged 159% this year.
Nvidia, year-to-date
— Sean Conlon
Retail surprises: strong regular-priced sales propel two retailers' profits
All the talk about consumers hunting for value, but improved full-price selling led to big two retail earnings beats this afternoon.
Shares of Nordstrom are rallying after earnings beat by 25 cents. Its gross margin improved more than Wall Street expected as a result of "strong regular price sales." The company also noted that "active, women's apparel, beauty and kids had the strongest growth versus 2023."
Tommy Hilfiger and Calvin Klein parent PVH earnings beat by 72 cents. CEO Stefan Larsson noted that "significant gross margin expansion" was fueled by "more full-priced selling and less end-of-season clearance sales."
— Robert Hum
Investors need to stay on their toes, Piper Sandler says
Despite a light trading volume week, investors should continue to stay on their toes ahead of expected earnings releases, according to Piper Sandler.
"A light volume trading week is expected ahead of the Labor Day weekend; however, several key earnings reports could increase market volatility," the investment firm wrote in a Tuesday report.
AI darling Nvidia is expected to report earnings on Wednesday afternoon after the session's close. Salesforce and CrowdStrike are also expected to post earnings this week.
— Lisa Kailai Han
Stocks making the biggest moves after hours
Check out the companies making headlines in extended trading.
Nordstrom – Shares jumped about 7% after the company's second-quarter earnings topped analysts' estimates. The retailer reported adjusted earnings of 96 cents per share, topping consensus forecasts of 71 cents per share, according to LSEG. Meanwhile, revenue of $3.89 billion missed the estimate for $3.90 billion.
Ambarella – The semiconductor developer surged 20% after posting upbeat revenue guidance for the fiscal third quarter. Ambarella sees third quarter revenues ranging from $77 million to $81 million, while analysts polled by LSEG called for $69 million. The company also beat the Street's estimates on the top and bottom line in the second quarter.
Box – The cloud storage company advanced 4.3% after reporting a top and bottom line beat for the second quarter. Box reported adjusted earnings of 44 cents per share on $270 million in revenue. Analysts surveyed by LSEG had estimated earnings of 40 cents per share on $269 million in revenue.
The full list can be found here.
— Hakyung Kim
English (US)