After experiencing back-to-back weekly gains, Wall Street is gearing up for an important week. With Nvidia earnings on the horizon and the Federal Reserve’s favorite inflation gauge to be released, investors are eagerly awaiting the outcome. Last week, the S & P 500 and Nasdaq showed resilience by bouncing back from losses on Thursday and closing the week up by nearly 1.5%. Federal Reserve Chairman Jerome Powell hinted at upcoming interest rate cuts, causing the market to anticipate a total of 100 basis points in cuts by the end of the year.
TJX Companies emerged as the best-performing stock of the week, surging more than 6.5% after a strong quarterly beat and guidance raise. Despite increasing the price target to $130 per share from $115, the stock was rated at 2, signaling caution for further buys. Palo Alto Networks also demonstrated strength, gaining 4% after delivering robust earnings and a positive outlook. In contrast, Estee Lauder’s earnings report fell short of expectations, leading to a decision to discard the stock due to lackluster progress in the prestige beauty market.
Earnings Reports to Watch
This week, the focus will be on key earnings reports, particularly from Nvidia, Salesforce, and Best Buy. Nvidia is expected to release its fiscal 2025 second quarter results, with a close eye on the guidance for the current quarter. Salesforce’s performance in its fiscal 2025 second quarter will be closely monitored, especially after falling short in the previous quarter. Best Buy’s earnings will also be of interest as the company reports before the opening bell on Thursday.
Apart from earnings reports, economic data releases are significant indicators for the market. The upcoming week includes the government’s second look at U.S. economic growth in the second quarter, as well as the Personal Consumption Expenditures (PCE) price index. With the Fed aiming for inflation to return to its 2% target, investors are eagerly awaiting the release of these economic indicators. The Gross Domestic Product (GDP) report is also scheduled, with economists expecting the second estimate of Q2 economic growth to remain at a rate of 3.1%.
As investors brace themselves for a week filled with earnings reports and economic data updates, the market remains cautious yet optimistic. The anticipation of interest rate cuts and the impact of global economic conditions continue to influence trading decisions. With an overbought market and pivotal economic indicators on the radar, Wall Street is poised for a week of volatility and potential opportunities for savvy investors.
The combination of earnings reports from major companies like Nvidia, Salesforce, and Best Buy, along with crucial economic data releases, will shape the direction of Wall Street in the upcoming week. Investors must stay vigilant and analyze the outcomes of these reports to make informed decisions in navigating the ever-changing landscape of the financial markets.