Nvidia, the darling of the stock market, had its moment in the spotlight. Investors have pegged it as the first company potentially reaching a $4 trillion market cap, currently valued at around $3.6 trillion—comparable to the UK's annual GDP. The company's Q3 results were impressive, with sales and net income doubling year-over-year to $35.1 billion and $19.3 billion, respectively. Demand for its AI-driven graphics cards has pushed net margins to 55%. Despite these stellar figures, the market wasn't entirely convinced, with Nvidia's stock dipping 2.5% in after-hours trading due to vague short-term forecasts. The transition from the Hopper to the Blackwell chip models is underway, with "staggering" demand for the latter, according to Nvidia's CFO. The market's message? "We're watching you closely, don't disappoint us."  The AI narrative remains intact, but the lack of a market jolt leaves U.S. equities in a lull.

Elsewhere, U.S. weekly jobless claims fell unexpectedly, with initial claims dropping by 6,000 to 213,000 for the week ending November 16. This suggests a potential rebound in job growth for November, despite earlier disruptions from hurricanes and strikes.

Geopolitical tensions in Ukraine persist, with reports of Russia potentially escalating military actions, impacting safe-haven assets like gold.

Wall Street's main indices were stagnant yesterday: the Nasdaq 100 dipped 0.08%, the Russell 2000 edged up 0.03%, and the S&P 500 remained unchanged. Europe is struggling for direction, with the Stoxx Europe 600 rising only once in the last seven sessions, though its previous day's loss was a mere 0.02%.

Bitcoin, the year's most profitable institutionalized asset, reached a new high, nearing the symbolic $100,000 mark, fueled by rumors of a new White House position for digital asset policy. Other asset classes, including bonds, EUR/USD, gold, and oil, have been trading within narrow ranges. Investors remain uncertain about U.S. interest rates, with futures contracts showing a 52% probability of a Fed rate cut in December, compared to 48% for a status quo. This division is a stark contrast to a week ago when a rate cut was favored by 75%.

The equity market's indecision is linked to this uncertainty, as well as the unknown future U.S. Treasury Secretary. Donald Trump continues consultations, with names like Kevin Warsh and Marc Rowan in the mix.

On the downside, Bill Hwang, founder of Archegos, received an 18-year prison sentence after his fund's collapse wiped out $100 billion in market value.

In Asia, markets are mostly in the red this morning. Japan's Nikkei 225 fell 0.8%, while Sydney, Shanghai, and Seoul ended flat. Taiwan dropped 1.1%, with TSMC reacting to Nvidia's decline. India lost 0.7%. The Stoxx Europe 600 is flat, but futures on the main three Wall Street indices are up by 0.3%.

Today's economic highlights:

New jobless claims, the Philly Fed's business outlook and existing home sales are on the calendar today. 

The dollar is worth EUR 0.9499 and GBP 0.7910. The ounce of gold rose to USD 2,667. Oil regained some ground, with North Sea Brent at USD 74.18 a barrel and US light crude WTI at USD 70.16. The yield on 10-year US debt is up to 4.44%. Bitcoin rose to USD 97,446.

In corporate news:

  • Nvidia's Q3 earnings exceeded expectations with significant revenue from data centers, yet its Q4 revenue forecast disappointed due to supply chain constraints, affecting stock performance despite strong ongoing demand for its AI chips.
  • Palo Alto Networks reported better-than-expected Q1 2024 revenue and profit, driven by steady demand for its cybersecurity services, raised its FY2025 outlook, and approved a 2-for-1 stock split, although its full-year guidance disappointed some investors.
  • Snowflake raised its annual product revenue forecast, reported better-than-expected Q3 results, and entered a multi-year partnership with AI firm Anthropic, boosting its cloud services and positively impacting the software sector in financial markets.
  • The US Justice Department and several states have demanded that Google sell its Chrome browser to end its monopoly on internet searches, while also facing scrutiny over compliance with the European Union's Digital Markets Act and influencing a drop in tech stocks.
  • Ford Motor Company - In October, EU car sales increased due to rises in Germany and Spain, while Ford announced job cuts in Europe by 2027 due to falling electric vehicle demand, amidst broader industrial sector concerns over trade wars and economic warnings, and unionization efforts at a Ford battery plant in Kentucky.
  • Baidu's third-quarter financial results revealed a 14% increase in profit despite a 3% drop in revenue and missed estimates due to ongoing weak advertising demand, while PDD Holdings also reported lower-than-expected revenue and profit, attributed to weak consumer confidence and heightened competition.
  • Deere & Co reported mixed Q4 results with lower earnings and fluctuating revenues, while forecasting a lower-than-expected profit for 2025 due to declining farm incomes and inflationary pressures.
  • Reddit experienced significant outages affecting nearly 50,000 users due to a software bug, which has since been resolved, alongside news of an insider selling shares worth over $4 million.
  • Target's Q3 earnings miss led to a 21% drop in its stock price, impacting consumer stocks and overshadowing positive consumer spending forecasts for the holiday season despite ongoing inflation concerns.
  • Comcast is set to spin off its NBCUniversal cable networks into a new publicly traded company, aiming to streamline its operations and focus on more profitable ventures.

Analyst recommendations:

  • Aercap Holdings N.v.: Goldman Sachs upgrades to buy from dropped coverage with a target price of USD 119.
  • Dt Midstream, Inc.: Citi upgrades to buy from neutral with a price target raised from USD 90 to USD 115.
  • Grab Holdings Limited: China Renaissance Research upgrades to hold from buy with a price target raised from USD 4.60 to USD 5.40.
  • Ulta Beauty, Inc.: William Blair downgrades to market perform from outperform.
  • Walmart Inc.: DZ Bank AG Research upgrades to hold from buy with a price target raised from USD 82 to USD 91.
  • Aes Corporation (The): Mizuho Securities maintains its outperform recommendation and reduces the target price from USD 24 to USD 16.
  • Applovin Corporation: SPDB International Holdings Ltd maintains its buy recommendation and raises the target price from USD 213 to USD 394.
  • Delta Air Lines, Inc.: Deutsche Bank maintains its buy recommendation and raises the target price from 60 to USD 80.
  • Doximity, Inc.: JP Morgan maintains its neutral recommendation and raises the target price from 30 to USD 48.
  • Dt Midstream, Inc.: Citi upgrades to buy from neutral with a price target raised from USD 90 to USD 115.
  • Emerson Electric Co.: President Capital Management Corp maintains its buy recommendation and raises the target price from USD 120 to USD 146.
  • Equitable Holdings, Inc.: Morgan Stanley maintains its overweight recommendation and raises the target price from USD 48 to USD 60.
  • Microstrategy Incorporated: BTIG maintains its buy recommendation and doubles the target price from USD 290 to USD 570.
  • Morgan Stanley: Daiwa Securities maintains a neutral recommendation with a price target raised from 108 to USD 139.
  • Nvidia Corporation: Deutsche Bank maintains its hold recommendation with a price target raised from 115 to USD 140.
  • Planet Fitness, Inc.: Baptista Research maintains its hold recommendation with a price target raised from 88.60 to USD 108.90.
  • Procore Technologies, Inc.: Loop Capital Markets maintains its hold recommendation with a price target raised from 55 to USD 68.
  • Ralph Lauren Corporation: Baptista Research maintains its outperform recommendation and raises the target price from 193.10 to USD 243.50.
  • Snowflake Inc.: Barclays maintains its equalweight recommendation and raises the target price from 142 to USD 172.
  • Target Corporation: Bernstein maintains its market perform recommendation and reduces the target price from 167 to USD 120.
  • The Goldman Sachs Group, Inc.: Citigroup remains neutral recommendation with a price target raised from USD 485 to USD 585.
  • Wells Fargo & Company: Daiwa Securities maintains its outperform rating and raises the target price from USD 63 to USD 83.
  • Williams-Sonoma, Inc.: Citigroup remains neutral recommendation with a price target raised from USD 134 to USD 177.
  • Crest Nicholson Holdings Plc: Peel Hunt downgrades to add from hold with a target price reduced from GBX 220 to GBX 170.