By Shashwat Chauhan and Twesha Dikshit (Reuters) -Wall Street’s main indexes were set for a muted open on Monday, heading into a packed week that includes AI bellwether Nvidia’s results and the resumption of government data releases, while Alphabet shares rose after Berkshire Hathaway disclosed a stake. Google-parent Alphabet gained 3.9% in premarket trading after […]
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Wall St set for muted open with eyes on Nvidia earnings, data
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By Shashwat Chauhan and Twesha Dikshit
(Reuters) -Wall Street’s main indexes were set for a muted open on Monday, heading into a packed week that includes AI bellwether Nvidia’s results and the resumption of government data releases, while Alphabet shares rose after Berkshire Hathaway disclosed a stake.
Google-parent Alphabet gained 3.9% in premarket trading after Berkshire revealed a new $4.3 billion stake in the company and further reduced its stake in Apple.
Apple fell 1.2%, making it one of the laggards among megacap and growth stocks.
Nvidia’s results, due after markets close on Wednesday, will test the sustainability of a stunning rally this year in AI-related stocks, with some investors already pointing to stretched valuations and signs of a bubble. The chipmaker’s shares were down 1.6%.
“Whenever a beloved AI name dips, (investors have) been piling in … and you have to ask yourself who are the true believers and how much money do they have,” said Kim Forrest, chief investment officer at Bokeh Capital Partners.
“It feels like we’re getting to a point where one or the other is running out.”
At 08:31 a.m. ET, S&P 500 E-minis were down 7.75 points, or 0.11%, Nasdaq 100 E-minis were down 23.75 points, or 0.09%, Dow E-minis were down 66 points, or 0.14%.
RETAIL GIANTS TO REPORT
The quarterly earnings season will start to thin out this week, though not before earnings from retail giants Walmart, Home Depot and Target.
Of the 456 S&P 500 companies that have reported earnings for the quarter, 82.7% topped profit estimates compared with a long-term average of 67.2%, according to data compiled by LSEG.
With the longest government shutdown in U.S. history officially having ended last week, key data releases from government agencies are expected in the next few days.
The much-delayed September jobs report will also be released on Thursday, but may do little more than confirm earlier private market surveys showing a slowing labor market.
Traders currently see a more than 56% chance that the Federal Reserve will hold its rate steady in December compared with a near 94% chance of a 25-basis-point cut seen a month ago, according to the CME FedWatch Tool.
On Monday, at least four Fed speakers including Governor Christopher Waller and New York Fed President John Williams are slated to speak throughout the day.
Minutes from the Fed’s October meeting – where it cut rates by an expected 25 basis points – are due on Wednesday.
U.S. stocks have run into turbulence of late as investors fretted about the pace of rate cuts and elevated valuations of heavyweight technology stocks that have been one of the key drivers of markets this year.
Among other movers, shares of Clearwater Analytics rose 10.1% after reports private equity firms Warburg Pincus and Permira were in talks to buy the investment and accounting software maker.
Dell Technologies dropped 5.9% after Morgan Stanley double-downgraded its rating on the AI server maker to “underweight” from “overweight”.
(Reporting by Shashwat Chauhan and Twesha Dikshit in Bengaluru; Editing by Krishna Chandra Eluri and Saumyadeb Chakrabarty)