In this latest Market Radar, we take a closer look at the pivotal central bank interest rate decisions that could shape trading dynamics throughout the week. We discuss key events including:

• Bank of Japan (BOJ) interest rates
• Reserve Bank of Australia (RBA) interest rates
• People’s Bank of China (PBOC) interest rates

Stay informed with our weekly market analysis on Market Radar.

In this latest Market Radar, we talk about pivotal Eurozone economic events which can affect market dynamics this week. 

• Eurozone retail sales
• ECB interest rate decision
• Eurozone Q4 GDP impact

Find out how these indicators influence both currency pair movements like EURUSD and the performance of the DAX index.

Stay informed with our market updates.

In this latest Market Radar, we talk about key economic indicators that may shed some light on the state of the US economy. Find out how your trades will be impacted by these indicators -

• US Quarterly GDP
• ISM Manufacturing PMI
• US Core PCE

Stay informed with our weekly market analysis on Market Radar.

In this latest market radar, we dive deep into Salesforce's latest earnings report. We explore the implications for future market competition, and how Salesforce is positioning itself to challenge for the top spot in the cloud computing race:

• Salesforce (CRM)

Stay informed with our weekly market analysis on Market Radar.

Nvidia earnings was the standout asset in tech portfolios throughout 2023. They recorded over 30% gains by the end of the fourth quarter. It outperformed peers in the tech space such as Amazon and Alphabet, after quadrupling their stock value in 15 months.

The company’s recent performance has been impressive, given that it was not driven by a Covid-like global crisis. Analysts largely attribute its success to product fitness and design prowess, coupled with the skyrocketing global demand for AI microchips and semiconductors.

What to expect from the earnings call

For analysts and investors, the Wednesday, 21 February, earnings call can’t come soon enough. The Zacks Consensus Estimate has predicted earnings per share of 4.51 dollars on revenues of 20.18 billion dollars for the fourth quarter. The projected expansion in revenue largely stems from the high demand for its products, with demand-side pressure at times outweighing supply.

Previous quarter earnings

If Nvidia reports earnings that border the Q4 consensus estimate of $20.18 billion (up from the previous quarter’s $18.12 billion), it would represent revenue growth of 11.37%. Despite export restrictions to China, Q3 earnings set a record thanks to strong demand in Singapore, Taiwan, and the US. 

One of Nvidia’s biggest money makers is its data centre. Their revenue was up 279% from a year ago at $14.5 billion in the last quarter. As the chip wars escalate in the age of AI, stakeholders have raised concerns about supply-side issues. Questions arise regarding whether the company can sustain its winning streak while competitors like AMD lurk in the background.

Company CFO Colette Kress has also addressed supply concerns, “Our supply over the next several quarters will continue to ramp as we lower cycle times and work with our supply partners to add capacity.”

Share price and general outlook

Nvidia was the star stock of 2023, with a general upswing that saw the stock achieve triple digit growth. Technicals hint at a continued upward trend with the 20 SMA still well above the 100 SMA. This indicates a continued bullish sentiment.

Nvidia stock growth chart 

Despite the growth prospects and the clear bullish sentiment, traders should note that the company has a relatively high price-to-earnings ratio of 95.22 as at Wednesday, 14 February 2024. The high ratio might suggest that investors consider the company overvalued, potentially signaling an impending price correction. It could also mean that investors are willing to pay a premium because they believe in the company’s future growth.

Investors will keep a keen eye on whether Nvidia can keep up its historic data centre segment growth. It will also be interesting to watch if the company can maintain its market share in a highly competitive space. Its product road map raised concerns with the US instituting export restrictions to keep Nvidia’s most powerful chips, A100 and H100 away from Chinese hands.

Despite this hurdle, analysts are wary of the possibility of further restrictions affecting the company’s relationship with the Chinese market. 

Wednesday's Nvidia earnings call may offer additional insight into the company's approach to restrictions and its near-future product plans. Traders should watch the numbers to see if the company beats analysts Q4 estimates, as this could impact short-term price action.

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Disclaimer:

This information is considered accurate and correct at the date of publication. Changes in circumstances after the time of publication may impact the accuracy of the information. 

The performance figures quoted refer to the past, and past performance is not a guarantee of future performance or a reliable guide to future performance. Trading is risky. We recommend you do your own research before making any trading decisions.

The information contained within this blog article is for educational purposes only and is not intended as financial or investment advice. No representation or warranty is given as to the accuracy or completeness of this information.

In this latest Market Radar, we explore two crucial data indicators that may impact your trading decisions this week:

• FOMC Meeting Minutes
• Europe Consumer Price Index (CPI) data

Stay informed with our weekly market analysis on Market Radar.

On Tuesday, 20 February, Walmart and Home Depot earnings reports will go public. This comes after a period of gains throughout the retail sector over the Christmas and New Year period. Retail sales increased by 0.6% in December, while core retail sales jumped 0.8%. 

Despite the squeeze on disposable incomes thanks to inflation and soaring interest rates post-pandemic, increased consumer spending has helped the economy avert a possible recession. The year 2024 got off to a strong start with retail sales growing by 2.34% year on year, according to data from the National Retail Federation (NRF) Retail Monitor.

The president of the National Retail Federation, Matthew Shay, expressed confidence that consumer spending would remain strong after impressive post holiday numbers. 

“January sales continued the strong performance of retail in December, which is impressive coming off a record holiday season. More importantly, year-on-year growth was solid, showing consumers are still optimistic and willing to act on the spending power brought by growing employment and wages.”

What should you expect from the earnings calls?

Walmart Earnings Call

Wall Street analysts expect Walmart earnings of 1.63 dollars a share, on 170.44 billion dollars in revenue. These numbers would represent a revenue growth of 6% from Q3’s 160.8 billion dollars. 

During its Q3 earnings call, the company’s Chief Financial Officer John David Rainey said that their strategy was “winning”. 

“Our financial results clearly demonstrate that our omnichannel strategy is winning. We’re growing our share across categories, deepening customer engagement across channels, while investing in areas to widen our competitive advantage.”

The company’s stock has gone up 8% year to date after starting the year at 157.65 dollars. 

 Walmart stock growth chart

With the company’s PE (price-to-earnings) ratio just slightly above industry standard  at 28.05, traders are urged to consider the various factors that may influence the stock's performance. A rate cut for instance, would increase the spending power of households and could trigger a shopping spree that will help the stock. 

Home Depot earnings call

Despite decreasing demand in big ticket home renovations, Home Depot has pulled off some impressive numbers to beat analyst estimates for Q3. Especially after they posted earnings per share of 3.81 dollars on revenues of 37.71 billion dollars. 

The consensus estimate for Q4 has been set at earnings per share of 2.76 dollars and 34.6 billion dollars in revenue. The company’s stock has been on the rise since the tail end of last year, with the uptrend remaining strong year-to-date.

Home Depot stock growth chart in 2023

End-of-year sales were boosted by innovative interventions, such as the company’s shoppable CTV series featuring Grammy award winner Jordin Sparks, that created positive publicity.

Future of Home Depot

The company aims to improve its product assortment and fulfillment operations, as well as its digital capabilities, which will increase its growth outlook. Home Depot’s acquisition of Construction Resource’s parent company, International Design Group, will help the company acquire a larger share of the construction industry giving it more control over an addressable market of 475 billion dollars.

President and CEO of Home Depot, Ted Decker said that the acquisition would help accelerate their Pro growth opportunity with “a successful showroom model, an exceptional sales force, and proven, long-term relationships with renovator, remodeler and residential new-construction Pros.”

With the company’s PE ratio at 22.95 as of Wednesday, 14 February, some analysts may see the stock as good value for money. Traders are urged to also consider other factors that may affect the stock price such as interest rate announcements as well as employment numbers. 

So, will Walmart and Home Depot keep roaring? The numbers will tell. Traders should keep a keen eye on the earnings call to see if the company outperformed market estimates. This could have implications on price movement.

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Disclaimer:

This information is considered accurate and correct at the date of publication. Changes in circumstances after the time of publication may impact the accuracy of the information. 

The performance figures quoted refer to the past, and past performance is not a guarantee of future performance or a reliable guide to future performance. Trading is risky. We recommend you do your own research before making any trading decisions.

In this latest Market Radar, join us as we explore key stock earnings from these retail giants:

• Walmart (WMT)
• Home Depot (HD)

Stay informed with our weekly market analysis on Market Radar.

In this latest Market Radar, join us as we explore the earnings report analysis of NVIDIA (NVDA), including what’s driving its success and potential hurdles ahead.  

Stay informed with our weekly market analysis on Market Radar.