In a day of dramatic market movements, Nvidia (NVDA), a leading technology company, is basking in the glow of investor optimism. The tech titan’s shares climbed 0.9% in pre-market trading as investors eagerly anticipate its third-quarter earnings report, predicted to showcase record revenue and a substantial profit surge. This comes after an impressive 20% increase in Nvidia shares following its second-quarter report in May. Analysts are forecasting an impressive $11.9 billion in revenue, a 67% rise from the same quarter last year, and a quarterly profit of $4.73 billion, a stark contrast to the $656 million from the same period a year ago.
On the flip side, AMC Entertainment Holdings (AMC) is weathering a storm as its shares dropped 12% in pre-market trading, a continuation of the 28% plunge witnessed in the prior session. This tumble comes as the movie theater chain is set to end trading of its AMC Preferred Equity units on Thursday, which are due to be converted into common stock. In addition, AMC is planning a 1-for-10 reverse stock split on Thursday, adding an extra layer of complexity to its current market situation.
Market Watch: Nvidia and UPS Shares Rise as AMC and Home Sales Stumble
Nvidia Shares Surge in Anticipation of Earnings Report
Nvidia (NVDA), a leading tech company, saw a 0.9% increase in pre-market trading as investors awaited the company’s third-quarter earnings report. The report, which is due for release after the market closes, is expected to reveal record revenue and a significant profit increase. If the predictions are accurate, Nvidia will have generated $11.9 billion in revenue, a 67% increase from the same quarter the previous year, and a profit of $4.73 billion, far exceeding the $656 million profit from the same period last year. The rise in shares comes after Nvidia saw a 20% increase following its second-quarter report in May.
AMC Entertainment Holdings Suffer Setbacks
On the other hand, AMC Entertainment Holdings (AMC) experienced a 12% drop in pre-market trading. This follows a 28% decrease in the prior session as the company prepares to convert its AMC Preferred Equity units into common stock and execute a 1-for-10 reverse stock split. The actions, set to take place on Thursday, have sparked apprehension among investors, leading to the sharp fall in shares.
Toll Brothers Exceeds Expectations Amid High Demand
Despite the fluctuating market, Toll Brothers (TOL) reported better-than-expected third-quarter net income. The luxury home builder’s net income stood at $3.73 per share on revenue of $2.69 billion, surpassing analysts’ forecast of $2.85 per share of income and $2.4 billion in revenue. This positive performance is attributed to high mortgage rates, which have increased the demand for new home construction. The company’s shares traded 0.5% higher in pre-market trading.
UPS Shares Flourish After Union Contract Approval
United Parcel Service (UPS) also saw a rise in shares, with a 0.7% increase in pre-market trading following the ratification of its labor contract with the Teamsters union. The contract received an overwhelming 86% approval from union members, a positive turn of events given recent instances of union workers rejecting contracts negotiated by their leadership.
U.S. Services PMI and New Home Sales Expected to Increase
The U.S. services sector is projected to experience a slight increase to 52.5% in August from 53.2% in the previous month. Meanwhile, new home sales are anticipated to rise to 703,000 in July from 697,000 in June, according to the S&P flash services Purchasing Managers Index (PMI).
Takeaways
Today’s market watch highlights the volatility and unpredictability of the stock market, with companies such as Nvidia and UPS experiencing gains, while others like AMC face setbacks. The real estate market continues to show promise, with Toll Brothers exceeding expectations amid high demand for new homes. As investors anxiously await Nvidia’s earnings report, it will be interesting to see how these market trends continue to evolve.
