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Nvida wait.
Nvidia announces after the close and the market wasn’t in the mood to move much ahead of the results. Futures were quiet overnight and the S&P opened up about 5 points. The index gained a handful more points early before rolling over gently and spending the session down about 10 points. That’s very little action. Treasuries didn’t move much either today and capital flow was very light at 83%.
Who knows how the market will react to NVDA’s results today. It’s expected that they will massively beat all published expectations and investors assume guidance will be substantially raised. There’s probably never been a stock with such high expectations. The fact that the Street is so confident that they will deliver is a testament to how good their business is.
Someday, they will disappoint, and the stock is going to drop a ton and the S&P 500 is going to take quite a lump. Almost nobody thinks that day is today.
We will find out soon enough.
For the broader market, we’re in a holding pattern. We’re waiting to get the all-clear signal from NVDA, then we probably resume the climb.
At least, that’s the thinking at the moment.
See you tomorrow.
-Mike
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