Back to top

Image: Bigstock

Markets Nosedive into Close, NVDA Beats Q3 Ests

Read MoreHide Full Article

Market indexes nosedived into Wednesday’s close after spending all morning trading in the green. The good news had to do with Boeing’s (BA - Free Report) 737 MAX returning to the air; the downturn came on New York City’s announcement that its public schools will temporarily close on a rise in Covid-19 infections. Both the Dow and S&P 500 came in 1.16% lower on the day, with the Nasdaq down 0.82% and the Russell 2000 pulling up the rear, -1.26%, after achieving yet another record high intra-day.

The major thrust of the pandemic in the U.S. came when New York City and the tri-state area blossomed back in March and April of this year, with a higher percentage of fatalities from the coronavirus as healthcare professionals found out on the fly which treatments and methods worked best. This was before Covid-19 had reached most regions in the U.S.; the West Coast saw the coronavirus imported from China while New York saw its cases come in from Europe. With a 7-day positivity rate of 3%, this has mandated Big Apple schools shutting down, which will likely hamper the local economy in and around the country’s largest school system.

As markets had returned to all-time highs in the past few trading sessions, there looks to be a ceiling in place currently. There is still lots of resistance in the transfer of presidential power from President Trump to President-Elect Biden, with a lack of stimulus from Congress adding challenges for households and small businesses once again hurt by lack of business during this second- (third?-) wave of Covid-19. Meanwhile, the pandemic rages onward, with 170K new cases in the U.S. last Saturday alone. More than a quarter of a million Americans have now perished from the disease.

All 11 sectors of the S&P 500 finished in the red, led by stocks either hit hard by new pandemic realities or from recent earnings reports investors find problematic. Lowe’s (LOW - Free Report) falls into this latter category, down 8% on the day following an earnings and sales beat in its Q3 report, but with disappointing guidance on earnings and comps for Q4.

One company suffering no such hindrances is NVIDIA (NVDA - Free Report) , which reported Q3 results after the bell today: earnings of $2.91 per share easily toppled the $2.57 in the Zacks consensus, with $4.73 billion in revenues up 57% year over year, blasting past the estimated $4.42 billion. The chipmaker put up record sales in its Gaming sector, $2.3 billion, while Data Center’s $1.9 billion was up a whopping 162% from the year-ago quarter. Shares are up modestly on the news, but NVIDIA has already gained 200% since its March lows, +128% year to date.

Questions or comments about this article and/or its author? Click here>>

 

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


The Boeing Company (BA) - free report >>

Lowe's Companies, Inc. (LOW) - free report >>

NVIDIA Corporation (NVDA) - free report >>

Published in