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Stocks Shake Off War Angst Before Nvidia’s Results: Markets Wrap

(Bloomberg) -- Stocks rose in a volatile session marked by geopolitical headlines, with Nvidia Corp. climbing ahead of its results. Bitcoin hit fresh highs in a rally that sent the digital asset above $93,000. Most Read from BloombergParis to Replace Parking Spaces With TreesNew York’s Transit Agency Approves $9 Congestion TollIn Cleveland, a Forgotten Streetcar Bridge Gets a Long-Awaited LiftA Bug’s Eye View of Mexico City’s Modernist ArchitectureAmtrak Wins $300 Million to Fix Its Unreliable N Read More...

(Bloomberg) — Stocks rose in a volatile session marked by geopolitical headlines, with Nvidia Corp. climbing ahead of its results. Bitcoin hit fresh highs in a rally that sent the digital asset above $93,000.

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Trading in options signals Nvidia’s results Wednesday will be the most-important catalyst left this year — more than the Federal Reserve’s December meeting, according to Barclays Plc strategists. The chipmaker at the forefront of the artificial-intelligence boom rose 4.4%, leading gains in the S&P 500. An earlier slide in equities was driven by Ukraine’s first strike with US missiles in Russia and President Vladimir Putin’s approval of an updated nuclear doctrine.

To Gaurav Mallik at Pallas Capital Advisors, geopolitical uncertainties are indeed a recipe for volatility. As for Nvidia’s results, he’s expecting strong numbers, citing capital expenditure by big tech and his view that there’s still “no clear substitute” for the company’s chips.

“This market is fickle,” said Nancy Tengler at Laffer Tengler Investments. “Stocks ultimately trade on earnings and they have been great. I don’t recommend stocks ahead of earnings, but if NVDA sells off, jump in.”

The S&P 500 added 0.2%. The Nasdaq 100 climbed 0.5%. A gauge of the “Magnificent Seven” megacaps advanced 1.3%. The Dow Jones Industrial Average slipped 0.4%.

US 10-year yields slid four basis points to 4.38%. Oil and gold rose.

Corporate Highlights:

  • Walmart Inc. boosted its outlook for the year on a solid start to the holiday season and strong demand from US consumers searching for value.

  • Lowe’s Cos. extended its streak of declining sales during the third quarter as it continued to feel the ripple effects of a weak housing market.

  • Alphabet Inc.’s Chrome browser could go for as much as $20 billion if a judge agrees to a Justice Department proposal to sell the business, in what would be a historic crackdown on one of the world’s biggest tech companies.

  • Super Micro Computer Inc. surged after the company hired a new auditor and filed a plan to come into compliance with Nasdaq listing requirements.

  • Bakkt Holdings Inc. jumped on news reports President-elect Donald Trump’s Trump Media & Technology Group Corp. is in talks to buy the digital-asset marketplace.

  • Hewlett Packard Enterprise Co. and Juniper Networks Inc. representatives met with Justice Department antitrust enforcers last week in a final effort to persuade the agency not to challenge their proposed $14 billion deal, according to people familiar with the matter.

  • The odds of WW International Inc. defaulting in the next year are rising, according to S&P Global Ratings, which downgraded the company formerly known as WeightWatchers one notch to CCC.

Key events this week:

  • China loan prime rates, Wednesday

  • Nvidia earnings, Wednesday

  • Fed’s Lisa Cook and Michelle Bowman speak, Wednesday

  • Eurozone consumer confidence, Thursday

  • US existing home sales, initial jobless claims, Philadelphia Fed factory index, Thursday

  • Eurozone HCOB Manufacturing & Services PMI, Friday

  • US University of Michigan consumer sentiment, S&P Global Manufacturing & Services PMI, Friday

Some of the main moves in markets:

Stocks

  • The S&P 500 rose 0.2% as of 2:50 p.m. New York time

  • The Nasdaq 100 rose 0.5%

  • The Dow Jones Industrial Average fell 0.4%

  • The MSCI World Index rose 0.3%

  • Bloomberg Magnificent 7 Total Return Index rose 1.3%

Currencies

  • The Bloomberg Dollar Spot Index fell 0.1%

  • The euro was little changed at $1.0592

  • The British pound was little changed at $1.2675

  • The Japanese yen was little changed at 154.63 per dollar

Cryptocurrencies

  • Bitcoin rose 2.3% to $93,439.03

  • Ether fell 0.6% to $3,131.76

Bonds

  • The yield on 10-year Treasuries declined four basis points to 4.38%

  • Germany’s 10-year yield declined four basis points to 2.34%

  • Britain’s 10-year yield declined two basis points to 4.44%

Commodities

  • West Texas Intermediate crude rose 0.3% to $69.40 a barrel

  • Spot gold rose 0.7% to $2,630.90 an ounce

This story was produced with the assistance of Bloomberg Automation.

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