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Nvidia’s GTC is now the AI Woodstock. (0:52) The Fed’s new dot-plot would be the large focus. (1:37) Reddit set to start out trading. (2:24)
The next is an abridged transcript:
The highest tales to look out for this week
Rocky and Apollo. Napoleon and Wellington. Batman and The Joker. You may take a aspect on which one among this highly effective pair goes to jolt the market this week: The Fed or Nvidia (NASDAQ:NVDA).
AI has bested rates of interest within the inventory market to this point, pushing equities to document highs regardless of a return on money not seen in additional than 15 years.
This week we get Nvidia’s GPU Expertise Convention, referred to as GTC to most and the AI Woodstock to Wall Avenue. The Federal Open Market Committee will make its choice on Wednesday.
Going chronologically, Wedbush says GTC attendees can be searching for commentary of liquid cooling wants for the highly effective structure and that “one of the struggles for liquid cooling in gaining traction has been a lack of a standard implementation.”
From a inventory perspective, Investing Group Chief Livy Funding Analysis says that “Nvidia is currently trading exactly at where it should be b ased on historical observations” and that “momentum is expected to pick up gradually post-GTC, and more prominently approaching the F1Q25 period-end and on the heels of said earnings release.”
But when Nvidia is Yul Brenner’s Chris, main the Magnificent 7 in opposition to unimaginable odds, then the Fed is Eli Wallach’s Calvera, the nemesis able to shoot down excessive valuations with higher-for-longer raids on fairness enthusiasm.
The Fed choice is a fait accompli with dealer pricing in a close to certainty of now transfer. However consideration has turned to the Abstract of Financial Projections, also called the dot plot, to see if the FOMC has been spooked by the most recent scorching inflation information.
Carol Schleif, chief funding officer at BMO Household Workplace says: “The earliest possible cut could be June, though we wouldn’t be shocked to see that delayed to later in the year if the data continues to come in hot as recent data has.”
Wells Fargo’s economists say that “beneath the robust headline figures, we see building evidence that the labor market is cooling and inflation is still slowing on trend.”
They “look for 100 bps of easing in total this year and another 100 bps of easing over the course of 2025 to bring the fed funds target range to 3.25%-3.50% by year-end 2025.”
Reddit (RDDT) headlines the IPO calendar with its much-anticipated debut. The social media firm is predicted to cost 22M shares between $31 and $34 per share, elevating up to $748M with the deal.
SA Analyst Mountainside Analysis is skeptical. They are saying there “are concerns about their lack of profitability, reliance on advertising. (and) their optimistic valuation,” including “based on how other recent IPOs have been received by the market, Reddit may have a rocky start.”
Seeking to earnings
It’s a loaded finish the of the week. Nike (NKE) and FedEx (FDX) report on Thursday.
Searching for Alpha analyst Bela Lakos says from a valuation standpoint, Nike “provides little upside potential at the current levels and “the difficult macroeconomic surroundings, together with the battle on the Crimson Sea and its impacts on the Suez Canal visitors, is prone to have a significant impression on the upcoming outcomes.”
Hedgeye made a FedEx lengthy name this previous week, saying it “will ride the tide of demand and pricing, albeit with some issues around surcharges that can lag.”
Analsyt Jay Van Sciver says: “We expect FY3Q results reported later this month to be the worst of it, with a management team looking for good news likely to chirp about improving industry trends in the spring. Could FDX miss on March 21? Yes, although we don’t see a probable scenario for a meaningful one. Could the shares trade up the next day? This is a risk business.”
Other earnings on tap are Tencent Music on Tuesday, Micron Technology (MU), Signet Jewelers (SIG), General Mills (GIS) and Five Below (FIVE) on Wednesday. And Lululemon (LULU) and Darden Restaurants (DRI) also on Thursday.
Among the top stories of the weekend
Federal officials have launched a probe into Meta Platforms (META) over concerns that the company’s social media platforms are benefiting from the illegal sale of drugs. That’s according to the Wall Street Journal.
As part of a criminal grand jury probe, the U.S. prosecutors in Virginia have been sending subpoenas and seeking responses from the tech giant, the owner of Instagram and Facebook. The officials are investigating whether the company’s social media platforms are enabling and profiting from the illicit sale of drugs. The FDA is also assisting the probe.
And Tesla (TSLA) plans to raise prices for its Model Y midsize electric SUV in both the U.S. and several European countries.
The company said that prices in the U.S. will increase by $1,000 for all Model Y cars on April 1. Tesla (TSLA) followed that up by saying that Model Y prices would rise across a number of countries in Europe on March 22 by about EUR 2K or the equivalent in local currencies. TSLA stock has been hamstrung by recent price cuts and is one of the lowest-peforming stocks in the S&P year to date.
For income investors
Here are some companies that have an ex-dividend date coming next week:
Kohl’s (KSS) has its ex-dividend date on March 19 with a payout date of April 3. Best Buy (BBY) goes es-dividend March 20 with the payout date of April 11 Broadcom (AVGO) has an ex-dividend date on March 20 as well, with its payout date on March 29. And Phillip Morris (PM) goes ex-dividend date on March 20 with a payout date of April 9.
And in the Wall Street Research Corner
Analysts from BofA Securities are out with their small-cap quantitative sector ranks.
Analysts ranked sectors based on estimate revisions, relative valuation compared to history, price momentum and rating changes to gauge investor sentiment.
The analysts said: “We found that the net proportion of upgrades-downgrades in a sector by our analysts is positively correlated with subsequent returns, particularly over the short term.”
Financials (PSCF) ranked first and shopper discretionary (PSCD) second, up from fourth place in January. Shopper discretionary (PSCD), actual property, and supplies (PSCM) noticed the most important enhancements in ranks, shifting from fourth to second, from sixth to fourth, and from seventh to fifth, respectively.
Communication providers (PSCU) noticed the most important deterioration, falling to sixth from second. Utilities ranked las once more.
And Completely happy St. Patrick’s Day to our listeners. Because the venerable Artwork Cashin mentioned: look ahead to the canary within the coal mine.
