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How to Play Nvidia's Earnings Report & the State of Retail Stocks

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On today’s episode of Free Lunch, Ryan McQueeney covers the latest Brexit drama and the state of retail stocks after the industry’s latest sales data and earnings from Walmart and J. C. Penney. Later, the host talks to Dave Bartosiak about how investors should play Nvidia’s upcoming earnings report.

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Free Lunch is presented by Zacks Investment Research. It is streamed live, four times per week, and features breaking news and analysis from Zacks strategists. Free Lunch is available on YouTube, Facebook Live, Twitter, Ustream, and more.

U.S. stocks whipsawed in morning trading as Wall Street tried to decide on its feelings about global and domestic headlines.

Optimism that the U.S. and China could reach a trade deal has been building, but new Brexit uncertainty in the U.K. threw a wrench in that bullishness. Theresa May’s government is in chaos after a number of top officials resigned on the back of an unpopular Brexit agreement with the E.U., and the prime minister’s next move is perhaps more unclear than ever before.

Stateside, investors juggled a plethora of new data from the retail industry. Retail sales growth in October came in at a solid 0.8%, but stripping out volatile goods like gasoline and considering one-off demand from hurricanes led some economists to be disappointed by the numbers.

Moreover, earnings results from the likes of Walmart (WMT - Free Report) and J. C. Penney (JCP - Free Report) were mixed.

Walmart easily topped earnings expectations and raised its full-year outlook. The big box behemoth also notched comps growth of 3.4% and domestic e-commerce growth of 43%. However, total revenue was relatively light, and the stock could not quite find its footing in morning trading.

Struggling department store retailer J. C. Penney also managed to beat bottom-line expectations, but comps were down a staggering 5.4%. Nevertheless, investors found some hope on the company’s conference call, and shares managed to rally into the green in late morning trading.

On the first half of today’s program, Ryan recaps all of these stories. Check out the segment for all of the key facts as well as Ryan’s perspective on the news!

Later, the host chats with Zacks Strategist Dave Bartosiak about Nvidia’s (NVDA - Free Report) upcoming earnings report. Dave explains that there has been a divergence between NVDA stock, which has tumbled sharply from its highs, and its generally strong earnings outlook. This creates an opportunity for investors to profit if Nvidia impresses, according to Dave.

Dave also explains that Nvidia’s report could spark momentum in the Nasdaq 100 (QQQ - Free Report) , which has bounced between key technical indicators recently. Tech stocks have been volatile and unpredictable, but a strong report from a bellwether like Nvidia might change that.

Make sure to tune into the show to hear and see more!

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