Dow leads US futures higher in aftermath of Nvidia earnings

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US stocks were poised for gains on Thursday, with the Dow leading the advance because the dust settled after Nvidia’s (NVDA) solid but disappointing earnings and investors reassessed the prospects for techs.

Dow Jones Industrial Average futures () were up 0.5% to eye a return to setting record highs. Futures on the tech-heavy Nasdaq 100 () rose 0.1%, while those on the S&P 500 () moved up roughly 0.2% on the heels of losses for all three gauges.

Stocks are taking a positive sheen amid Wall Street’s lackluster reception for the numbers from Nvidia, whose stellar growth streak has underpinned the market’s rally this 12 months.

While the AI chipmaker’s quarterly profit and revenue guidance topped estimates, the size of the beats fell wanting high-running hopes. That began to stir questions as as to whether the AI boom has peaked and initially dragged Nvidia’s stock down 6%, though the shares are recovering in pre-market trading.

Also in focus is a possible rotation out of tech stocks, given the more solid gains for the Dow and the Russell 2000 (RTY=F) before the bell.

Elsewhere in earnings, Salesforce (CRM) shares popped after a big earnings beat by the software maker. Results from Best Buy (BBY), Gap (GAP), and Ulta Beauty (ULTA) are on the docket on Thursday.

At the identical time, an update on weekly jobless claims due could revive the rate-cut debate, as could a reading on second quarter GDP. The market is closely watching economic data for a steer on how briskly and deep the Federal Reserve will lower rates of interest, now that Chair Jerome Powell has clearly flagged a cut is coming in September.

Live3 updates

  • HP logs one other difficult quarter

    Mixed quarter at best for computer and printer giant HP Inc (HPQ).

    The corporate continued to see pressure in its printing business, partially due to the continued work-from-home dynamic. Meanwhile, the AI PC ramp has yet to take hold and stays a whole lot of hype.

    “HPQ results held signs of a PC market recovery within the strength of the Industrial PS segment being enough to offset the weaker revenue outcomes in Consumer PS in addition to Print to deliver modestly higher revenue in F3Q. Nonetheless, the macro headwinds are driving softer leads to the opposite segments, which is in turn is impacting margins, and resulting in a modest moderation within the earnings outlook for F4Q and FY24 relative to prior expectations,” said JP Morgan analyst Samik Chatterjee in a client note.

    I caught up with HP CEO Enrique Lores last night. You possibly can watch a part of that chat below. Be aware of what Lores said in regards to the spread and impact of AI. I feel a whole lot of cost-cutting is coming to Corporate America next 12 months due to AI, and we’re seeing signs of it already (take a look at the mass layoffs recently announced at TurboTax seller Intuit (INTU)).

  • Nvidia quick take

    Nvidia (NVDA) shares are getting hit pre-market because the quarter didn’t live as much as super high Wall Street expectations.

    However the earnings call sure did, I feel. There was no indication from the decision that demand is slowing, actually quite the contrary. Every thing Nvidia talked about suggested an additional acceleration in demand for its high-powered AI chips.

    That said, I’m seeing the Street tweak estimates this morning amid higher expenses related to the production ramp for Blackwell chips.

    Good points here by Ruben Roy over at Stifel:

    “Blackwell production ramp is scheduled to start in F4Q, with expectations for several billion dollars in revenue in that quarter followed by volume increases to proceed into F2026. Within the near-term, higher operating expenses and modestly lower gross margin (recent product mix) will moderate EPS growth. Greater picture, the modernization of information center compute continues and, in our view, NVDA stays the first beneficiary.”

  • Salesforce goals to raised monetize AI

    Salesforce (CRM) shares are on the move higher following a comeback quarter after the close.

    I caught up with Salesforce chairman and CEO Benioff, and got here away very inquisitive about the corporate’s recent “agents” that it can begin deploying inside firms. These will principally be AI-powered robots that interact with humans to, say, close deals and upsell.

    Interestingly, Salesforce will charge clients per conversation for the product — which could add as much as real money.

    Here is my full chat with Benioff following his earnings call last night.

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