Everything is coming up roses on Wall Street Thursday morning. Even companies with net income down nearly 50% (Deere & Co, DE) are trending higher.
Topping the earnings calendar was Nvidia (NVDA), releasing third quarter results after the close Wednesday. The chip-maker earned 81 cents per share, beating estimates of 75 cents. The company's forward guidance fell a bit short of sky-high expectations, however, sending shares lower by one to two percent prior to the opening bell.
Not that a percent here or there changes any of the calculus for owning shares of a company with a $3.6 trillion market cap. Nvidia stock has gained more than 200% this year.
BJ's Wholesale Club (BJ) reported fiscal third-quarter earnings of $155.7 million. Earnings, adjusted for one-time gains and costs, came to $1.18 per share, handily topping estimates and well ahead of he same period in 2023, of 98 cents. Investors are rewarding the company's performance with a stock boost of seven to eight percent in pre-market trading.
Deere & Company (DE), maker of farm and garden equipment, saw earnings fall sharply but still beat easy estimates.
For the quarter ended October 27, 2024, Deere reported net income of $1.245 billion, or $4.55 per share, topping the analyst estimate of $3.89 per share. Revenue for the quarter came in at $11.14 billion, above the consensus estimate of $9.23 billion. Both figures represent substantial year-over-year declines, with net income down 47% and worldwide net sales and revenues decreasing 28% compared to the same quarter last year. In the same quarter in 2023, Deere earned $8.32 per share. The decline to $4.55 should be a warning sign of a company losing its mojo.
Nonetheless, shares are rising by two percent in pre-market trading.
Over the past five days, gold has rallied nearly four percent, up more than $100, to $2,670. Silver continues to be suppressed, gaining lass than two percent, currently trading on the COMEX around $31.50, though it has been as high as $31.95.
For whatever reason, bitcoin is off the charts, closing in on $100,000, having surpassed $98,000 this morning. Since the U.S. election, November 5, bitcoin has gained more than 40%.
Even oil has caught a bid, despite the third straight week of inflows according to the Energy Information Administration (EIA). Russia-Ukraine tensions are cited as the reason WTI crude is above $70 this morning. Not to throw shade on the utterly corrupt oil futures market, but there's an enormous global glut of crude that a few missile strikes aren't going to change. Besides, with Trump's inauguration just 60 days away, market dynamics are likely to veer radically, with the price of oil almost certain to decline.
There's still more than an hour before the cash market opens, so much of what's happened overnight could easily be discounted. U.S. and European markets have been a complete joke for years. That's something that is probably not going to change any time soon. However, those with an investment horizon longer than a few months might see signs of disinflationary trends headed their way. Trump's term of office, extending through 2028, is no doubt going to be very disruptive.
With that in mind, prices for everything from toilet paper to Teslas may be radically realigned. This is by no means a reccomendation to short anything, but caution should be top of mind over the next two months. The weeks before and immediately after Trump's inauguation may be a period of heightened volatility, owing to the paradigm shifts expected in how the U.S. conducts business with the rest of the world.
Dow futures an hour prior to the open are leading the advance, up 150 points, while NASDAQ, noting the weakness in NVDA, are up the least, less than 20 points to the good. S&P futures are up around 12 points, after last week's losses still shying away from the record high of 6,001 on November 11.
At the Close, Wednesday, November 20, 2024:
Dow: 43,408.47, +139.53 (+0.32%)
NASDAQ: 18,966.14, -21.33 (-0.11%)
S&P 500: 5,917.11, +0.13 (+0.00%)
NYSE Composite: 19,749.13, +30.88 (+0.16%)
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