Stocks ended mixed Monday, as Tesla helped push the Nasdaq higher.
The Dow Jones Industrial Average dipped 55.39 points, or 0.13%, to finish the session at 43,389.60, while the S&P 500 gained 0.39% to close at 5,893.62 and the tech-heavy Nasdaq gained 0.60% to end the day at 18,791.81.
Tesla climbed 5.62% to $338.74 following a Bloomberg report that suggests the easing of rules for self-driving cars will be a priority for Trump's new Department of Transportation.
Nvidia finished down 1.29% to $140.15 just days ahead of the AI chipmaker's scheduled earnings release on Wednesday.
Updated at 1:22 PM EST
Blackwell turns Nvidia red
Nvidia shares remained firmly in the red Monday following a report from The Information that suggested the AI chipmaker's new line of Blackwell processors has caused overheating in the servers of some of its key customers.
The report comes just days ahead, and during the so-called quiet period, of the group's third quarter earnings update, which is expected after the close of trading on Wednesday.
"Blackwell remains critical to Nvidia's story as it represents a shift toward greater platform-based revenue (GPUs, CPUs, networking) from standalone GPUs, offering another step up in sales," said CFRA analyst Angelo Zino. "Working through design flaws should be no surprise, but Nvidia needs to ensure execution over speed of delivery (of course, it is looking to accelerate the cadence of technology advances)."
Nvidia share were marked 1.6% lower in afternoon trading and changing hands at $139.75 each.
NVIDIA $NVDA -1% down after reports of overheating issues with its Blackwell GPUs in high-capacity server racks, potentially delaying adoption and disrupting Q4 revenue.
— Wolfe (@everytimeicash) November 18, 2024
Fixing the issue requires redesigning server racks, though AI demand remains strong.
During its Q2… pic.twitter.com/wlHqQhNOAO
Updated at 12:06 PM EST
Afternoon gains
Stocks are moving higher into the mid-day session, with the S&P 500 now up 24 points, or 0.46% and the Nasdaq rising 130 points, or 0.69%, ahead of a light week of corporate earnings in an otherwise solid, but by no mean spectacular, third quarter reporting season.
LSEG data suggests collective October-quarter profits will rise around 8.8% from last year to $527.4 billion, with four quarter profits pegged to grow 9.8% to $520.1 billion.
Treasury yields are easing, but only slightly, with 10-year notes trading at 4.445% and 2-year notes pegged at 4.310%.
"Results from the third quarter earnings season have supported the ongoing U.S. corporate sector resilience, and forward estimates point to additional earnings growth next year," said Principal Asset Management.
"With a soft-landing narrative still in play, solid earnings growth, combined with the lifting of pre-election uncertainty and a likely deregulatory stance by the incoming administration, should create a strong backdrop for risk assets ahead," the firm added.
Updated at 11:28 AM EST
Retail therapy
Walmart shares edged lower in early Monday trading, but are still on pace for a year-to-gain of more than 60%, as investors looked to the retail giant's third quarter earnings prior to the start of trading tomorrow.
Walmart is expected to post a bottom line of 53 cents per share, up from 51 cents over the same period last year, with overall revenues rising 4% to $165.71 billion.
Target, meanwhile, is slated to report on Wednesday, with analysts looking for a modest 2.2% revenue gain, to $25.56 billion and a bottom line of $2.30 per share.
What both companies say about the pace of consumer spending into the holiday season, and the lingering impact of inflation on shopping habits and ticket prices, will be crucial for the retail sector heading into the final months of the year.
Here's what Wall Street experts are saying about Walmart ahead of earnings $WMT https://t.co/06Jk8EYcVu
— The Fly (@theflynews) November 18, 2024
Updated at 10:26 AM EST
Drug warnings
Eli Lilly (LLY) shares slumped to the lowest levels since early February as investors dump pharmaceutical and vaccine-marker stocks in the wake of President-elect Donald Trump's choice of Robert F Kennedy Jr. to lead the Department of Health and Human Services
Kenndey, who told Fox news that so-called GLP-1 treatments are sold to Americans because “we’re so stupid and so addicted to drugs” has pledged to overhaul the healthcare system and tighten regulations on the approval and sale of new treatments.
Eli Lilly shares were last marked 4.3% lower at $713.70 each, a move that would still leave the stock up more than 20% for the year.
RFK Jr, who’s pledged to make a significant dent in chronic diseases including diabetes in the U.S. within 2 years, says Ozempic is sold to Americans because “we’re so stupid and so addicted to drugs” https://t.co/YaCZnsZyw4
— Meg Tirrell (@megtirrell) November 17, 2024
Updated at 9:36 AM EST
Muted open
The S&P 500 was marked 3 points, or 0.06% lower in the opening minutes of trading, with the Nasdaq up 19 points, or 0.09%.
The Dow was marked 85 points lower while the mid-cap Russell 2000 was up 5 points, or 0.22%.
"The market’s post-election rally tapped the brakes last week. Traders appear to be gauging the potential impact of a new Trump administration’s policies on the economy, and the possibility that the Fed may slow down its rate-cutting campaign," said Chris Larkin, managing director for trading and investing at E*Trade from Morgan Stanley.
"With a relatively light economic calendar this week, the focus will shift to earnings—especially Nvidia’s, which have the potential to dictate the market’s short-term momentum," he added.
Related: Top Wall Street analyst unveils unexpected S&P 500 price target for 2025
Updated at 8:34 AM EST
Yield creep
Another move higher in Treasury yields in weighing on stocks into the open, with benchmark 10-year notes rising 3 basis points from overnight levels to 4.487% in early trading and 30-year bonds topping 4.68% and trading north of the current Fed Funds rate for the first time since late 2022
10yr looking for its highest settle since May $TNX
— Mike Zaccardi, CFA, CMT 🍖 (@MikeZaccardi) November 18, 2024
4.49% pic.twitter.com/uax83YOk03
Stock Market Today
Stocks finished sharply lower on Friday, with the S&P 500 recording its biggest single-day decline in more than two weeks, following a firmer-than-expected reading for October retail sales that added to concerns of a resurgence in inflation pressures.
Last week's data, which included hotter-than-expected reading for consumer and factory-gate inflation as well as hawkish comments on interest rates from Federal Reserve Chairman Jerome Powell, added to the market's broader angst that President-elect Donald Trump's economic, immigration and trade agenda would further stoke domestic price pressures.
That's led investors to pare bets on a December interest-rate cut, which are now pegged at around 62%, according to CME Group's FedWatch, and has lifted benchmark Treasury bond yields to the highest since early July.
Benchmark 10-year paper was last pegged at 4.461% heading into the start of the New York trading session, with 2-year notes changing hands at 4.306%.
The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.02% higher at 106.702 after hitting a near two-year high late last week.
Related: Nvidia earnings on deck as AI kingpin tightens grip against rivals
On Wall Street, stocks are set for a mixed open heading into a relatively light week of earnings and data, highlight by Nvidia's (NVDA) third-quarter earnings after the close of trading Wednesday and a key look at the retail sector from reports from Walmart (WMT) and Target (TGT) .
The S&P 500 is priced for a modest 5 point opening bell gain in the futures market. The Dow Jones Industrial Average is called 130 points lower thanks in part to a 1.9% decline for Nvidia tied to a report that its Blackwell GPUs have caused servers to overheat in certain clients.
The tech-focused Nasdaq, meanwhile, is priced for a 80 point opening bell gain with Tesla (TSLA) rising 8.35% following a Bloomberg report that suggests the easing of rules for self-driving cars will be a priority for Trump's new Department of Transportation.
Spirit Airlines (SAVE) shares were also in focus after the discount carrier filed for Chapter 11 bankruptcy protection following months of losses and mounting debts stemming from its failed merger with JetBlue Airways (JBLU) .
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In overseas markets, Europe's Stoxx 600 was marked 0.11% lower in midday Frankfurt trading, with Britain's FTSE 100 rising 0.21% in London.
Overnight in Asia, Japan's Nikkei 225 ended 1.09% lower in Tokyo with the regional MSCI ex-Japan benchmark slipping 0.19% into the close of trading.
Related: Veteran fund manager sees world of pain coming for stocks
