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Coffee With Greta: NVDA Earnings Day


DJIA Futures: -80 (-0.2%)

SPX Futures: -15 (-0.3%)

NASDAQ Futures: -108 (-0.6%)

Good morning friends!

Futures are slipping as traders look ahead to the Fed minutes this afternoon and Nvidia (NVDA)’s earnings after the close.

Let’s get right to it!

Nvidia Earnings Day

Nvidia (NVDA) shares are down 2% ahead of the open as traders look ahead to the company’s earnings report after the market close. 

The chipmaker is expected to report $20.6 billion in revenue for the fourth quarter, marking 240% growth year over year. 

It would be the second straight quarter of over 200% growth. 

The stock has been falling since it peaked at a high over $742 per share on February 14. 

Traders will be focused on the CEO’s comments about how long the company will be able to maintain such blockbuster growth. 

In 2023, Nvidia hiked guidance by large margins several times.

Palo Alto Plunges

Palo Alto Networks (PANW) shares are plunging 24.9% in premarket trade after beating fiscal Q2 expectations but cutting guidance. 

Here’s how the cybersecurity company’s results compared to analysts’ estimates: 

  • Adjusted EPS: $1.46 vs $1.30 expected
  • Revenue: $1.98 billion vs $1.97 billion expected

The company forecast revenue between $1.95 billion and $1.98 billion in the current quarter vs $2.04 billion expected. 

For the full year, Palo Alto expected total billings between $10.1 and $10.2 billion vs $10.7 to $10.8 billion previously. 

The company sees full year revenue ranging between $7.95 and $8 billion vs prior guidance for $8.15 to $8.2 billion. 

The CEO blamed the lowered guidance on a “shift” in strategy, “wanting to accelerate growth, our platform migration and consolidation and activating AI leadership.”

Mortgage Demand Tumbles

Mortgage demand dropped sharply last week as rates jumped back above 7%. 

The Mortgage Bankers Association reported total application volume fell 10.6% from the previous week. 

Purchase applications fell 10% weekly and 13% year over year. 

Refinance applications fell 11% weekly and were 0.1% higher annually. 

The average 30-year fixed contract rate rose to 7.06% from 6.87%. 

Rates have continued to move higher this week with the latest quote from Mortgage News Daily showing an average of 7.11%.

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