Morning Brief: Nvidia disappoints, shares plummet
Friday, November 16, 2018
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What to watch today
It will be a relatively quiet day on the earnings side with a report from Viacom (VIAB) before market open.
Nordstrom (JWN) and Nvidia (NVDA) are both set to open lower today after reporting disappointing Q3 earnings.
On the economic data front, economists are expecting industrial production month-on-month for October to have grown by 0.2%, which is slightly lower from the previous 0.3% growth. Capacity utilization for October is expected at 78.2% from a prior 78.1%.
Top news
Nvidia Q3 disappoints, shares plummet: Nvidia (NVDA) reported a big miss on both the top and bottom lines for Q3 after market close on Thursday. The chipmaker earned $1.84 per share which was weaker than the $1.92 per share that was anticipated, according to analysts polled by Bloomberg. This is Nvidia’s first EPS miss in 13 quarters. Shares tanked 13% in after-hours trade on Thursday.
Pound could lose another 4% despite rout: The pound has been battered by political chaos in the UK over the draft Brexit deal — but many city analysts think sterling has further to fall. Sterling fell over 1% against the dollar and euro on Thursday, suffering its steepest decline in almost a year and a half. The slump came after several UK cabinet ministers resigned over prime minister Theresa May’s draft deal with the EU on Brexit. [Yahoo Finance UK]
Bankrupt Sears wins court approval for plans to sell stores: Sears Holdings Corp. (SHLD) won U.S. bankruptcy court approval on Thursday to move forward with plans to stay in business and sell itself, even as it continues to evaluate offers to liquidate its business. [Reuters]
Zuckerberg and Cook feud more public than ever: There’s no love lost between Facebook (FB) CEO Mark Zuckerberg and Apple (AAPL) CEO Tim Cook. Now Zuckerberg’s distaste for Apple is more public than ever. In a New York Times investigation into Facebook’s response to its slew of controversies over the past two years including the Cambridge Analytica scandal and Russian meddling, it was revealed that Zuckerberg has told top executives at Facebook to ditch their iPhones in favor of Google-backed Android devices. [Yahoo Finance]
Netflix analysts’ surprise move: higher price target: All five FAANG stocks have seen pronounced weakness over the past several weeks. But, by one measure at least, analysts have grown more positive on Netflix Inc. (NFLX) The average price target on Netflix has popped 5.2% since its Oct. 16 results, according to Bloomberg data, and currently sits at a record $400, implying upside of nearly 40% from current prices. [Bloomberg]
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