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Let’s dive into everything you should know about this week.
Key Earnings Announcements:
Once again… everyone is watching Nvidia.
Monday (11/18): BellRing Brands, Trip.com
Tuesday (11/19): Dollar Tree, Lowe’s, Keysight Technologies Medtronic, Walmart, XPeng
Wednesday (11/20): Nvidia, Palo Alto Networks, Snowflake, Target, TJX Companies, Williams-Sonoma
Thursday (11/21): Baidu, Deere & Co, Gap, Intuit, PDD Holdings, Ross
Friday (11/22): Global Blue Group Holding
What We’re Watching:
Nvidia (NVDA)
Nvidia’s (+186.7% YTD) upcoming earnings report on Wednesday has the market's attention, with expectations set at $0.74 per share and projected revenue of $32.97 billion. Analysts are specifically looking for updates regarding the company's Blackwell AI chip sales, seen as a pivotal growth catalyst for the company.
Wells Fargo has described Blackwell as an “influential but still underestimated platform cycle,” suggesting potential data center revenue of $30 billion — slightly above the broader forecast of $29.1 billion.
Good news for Nvidia last week, Elon's xAI is raising $6 billion to buy 100,000 Nvidia chips for its Memphis data center. However, recent challenges have emerged with these new chips. Reports indicate that Nvidia's Blackwell GPUs are prone to overheating when linked to server racks, potentially delaying deployment timelines.
Investors will be watching closely for management's commentary on this issue during Wednesday's call to better understand any implications for future growth.
Target (TGT)
Source: Target Investor Relations
Targets (+6.8% YTD) upcoming earnings report will give investors a glimpse into mass consumer spending trends. Analysts are projecting revenue to top $26 billion, reflecting a modest +2% year-over-year growth, with EPS estimated at $2.30 — a +9.5% increase from last year’s Q3.
The general sentiment around Target remains positive, bolstered by 27 upward EPS revisions against just four downward revisions by Wall Street analysts — signaling confidence in its profitability trajectory.
Despite facing challenges like shrinkage, recent efficiency improvements have yielded significant results — allowing the company to realize $500M in cost-cutting efforts. Fiscal Year 2023 was a better-than-expected performance — including a +50% EPS increase and healthier operating margins. This earnings call will be closely watched for updates on whether these trends continue and how Target navigates its operational and consumer-facing strategies amid a shifting retail landscape.
Investor Events / Global Affairs:
Delta Investor Day, Microsoft Ignite Conference, and updates on the dramatic situation with Super Micro Computer.
Delta Airlines (DAL) Investor Day
Source: Ekaterina Chizhevskaya / Seeking Alpha
Delta Air Lines is set to hold its Investor Day later this week. Key updates on Q4 booking trends and deeper insights into Delta’s 5-year strategic plan are expected. Shares of Delta saw a notable rally following their previous Investor Day, showcasing investor interest in the airline’s long-term vision.
Investors will be particularly focused on Delta’s forward-looking strategies amid fluctuating travel demand and economic uncertainty. Any positive signals regarding bookings or strategic growth could increase investor confidence and catalyze positive momentum in their stock price.
Microsoft (MSFT) Ignite Conference
The three-day Microsoft Ignite Conference kicks off this week, with expectations centered on new AI innovations. Last year’s event spurred gains for partners like Oracle, Asana, and Monday.com. This year, notable partners include AMD, Nvidia, Cisco, Dell, IBM, and Intel, hinting at potential collaborative announcements that could impact the tech ecosystem.
View the full list of event partners here.
Super Micro Computer (SMCI) Update
Source: Annabelle Chih / Bloomberg / Getty Images
Super Micro Computer’s stock price has fallen off a cliff — dropping -27% two weeks ago after Ernst & Young announced they would no longer audit the company.
EY stated it is "unwilling to be associated with the financial statements prepared by management” — sparking significant investor anxiety. SMCI shares were down -33% YTD as of Friday’s market close but saw a +16% uptick in after-hours trading due to news of a new filing.
Super Micro Computer is expected to submit a plan today (11/18) to maintain its Nasdaq listing. The company, specializing in AI servers, revealed in an SEC filing that while its special committee concluded its investigation of initial auditor concerns, additional work remains.
The delay in filing Q1 2025 earnings stems from the need to finalize the 2024 Form 10-K and secure a new accounting firm, keeping investor focus sharp on future developments. If the company is delisted, it would be the second time — delisted in August of 2018 for a delay in filing financial reports.
There’s widespread speculation about SMCI impacting Nvidia’s earnings performance over the next few quarters. It’s unclear if other clients — such as Microsoft, Meta, Alphabet, Amazon, and Dell — will be purchasing enough Nvidia product to make up the difference.
Very eager to hear more about this!
Major Economic Events:
A look into the housing market and consumer sentiment.
Monday (11/18): Chicago Fed President Goolsbee Speaks, Home Builder Confidence Index
Tuesday (11/19): Building Permits. Chicago Fed President Goolspee Speaks, Housing Starts
Wednesday (11/20): Fed Gov. Lisa Cooks Speaks, Fed Gov. Michelle Bowman Speaks
Thursday (11/21): Cleveland Fed President Hammack Speaks, Existing Home Sales, Fed Vice Chair for Supervision Barr Speaks, Initial Jobless Claims, KC Fed President Schmid Speaks, Leading Economic Index, Philly Fed Manufacturing Survey
Friday (11/22): Consumer Sentiment (Final), Fed Gov. Bowman Speaks, S&P Flash US Manufacturing PMI, S&P Flash US Services PMI
What We’re Watching:
Building Permits
Source: Trading Economics
Building permits in the U.S. fell -3.1% in September 2024 to a seasonally adjusted annual rate of 1.425 million, slightly revised down from the initial estimate of 1.428 million.
Approvals for multi-unit buildings (five units or more) dropped sharply by -9.2% to 405,000, while single-family authorizations edged down by -0.4% to 963,000. This data signals a potential cooling in the housing market and will be watched for its implications on broader economic growth.
"A renewed dip in single-family construction activity is likely over the next few months as homebuilders seem to have responded too aggressively to the slight upturn in new home sales in 2023, and are now left with an excessive level of inventory. Lower mortgage rates will help boost demand for new homes at the margin."
Michigan Consumer Sentiment
Source: University of Michigan
The University of Michigan's consumer sentiment for the U.S. climbed to 73 in November 2024 (up from 70.5 in October) — the highest reading in seven months. This marks the fourth consecutive month of improvement, though it does not yet capture any reactions to the election results.
The expectations index surged to 78.5, the highest level since July 2021, up from 74.1 in the prior month.
Optimism was fueled by a +6% rise in personal finance expectations and +9% increase in short-run business conditions. Long-term business conditions reached their most favorable point in nearly four years. Overall, sentiment has rebounded nearly +50% from its June 2022 low but remains below pre-pandemic levels.
“Consumers continue to express frustration over high prices.”
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Cover Image Credit: Annabelle Chih / Bloomberg / Getty Images
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