Asian Shares Open Mixed: Supported by U.S. Gains, Pressured by Nvidia Low Revenue GuidanceU.S. futures contracts are drifting lower during the pre-market session early Friday. The selling pressure is being fueled by a drop in Nvidia stock. Shares of the company fell by 6 percent on Thursday after the company reported better-than-expected earnings and lower-than-expected revenue guidance.
Asian stock markets are expected to open mixed on Friday. Yesterday’s strong performance in the U.S. market is expected to underpin prices, but low revenue guidance from Nvidia is expected to put a cap on any gains.
U.S. Equity Markets
U.S. stocks finished higher on Thursday on optimism that a meeting between the United States and China at the end of the month will lead to a resolution of the trade dispute between the world’s largest economies. Equities were also boosted by strong quarterly numbers from Walmart and Cisco Systems.
For the session, the benchmark S&P 500 Index settled at 2840.69, up 22.32 or +0.79%. The blue chip Dow Jones Industrial Average closed at 25558.73, up 396.32 or +1.58% AND the tech-driven NASDAQ-Composite ended at 7806.52, up 32.40 or +0.42%.
Strong gains in Walmart contributed the most to the Dow’s stellar performance. They also helped boost the S&P 500’s consumer staples sector. Stellar quarterly earnings from Walmart sent shares surging 9.3 percent. The company also reported its biggest jump in U.S. sales in a decade.
Overall performance was fueled by the news that the U.S. had invited China to the trade negotiation table. This invite was confirmed by National Economic Council Director Larry Kulow, who told CNBC’s Squawk Box” that a fresh round of trade talks has been scheduled for later in August.
Nvidia: After-Market Drag on Tech Sector
U.S. futures contracts are drifting lower during the pre-market session early Friday. The selling pressure is being fueled by a drop in Nvidia stock. Shares of the company fell by 6 percent on Thursday after the company reported better-than-expected earnings and lower-than-expected revenue guidance.
The NASDAQ Composite faces the most exposure to this news because it is a technology stock.
U.S. Treasury Markets
U.S. Treasury yields were higher on Thursday as investor sentiment rose, leading to the selling of safe-haven hedges. The yield on the benchmark 10-year Treasury note was higher at 2.87 percent, while the yield on the 30-year Treasury bond was higher at 3.027 percent.
U.S. Economic News
Weekly initial claims for state unemployment benefits slipped by 2,000 to a seasonally adjusted 212,000 for the week-ended August 11, according to the U.S. Labor Department.
U.S. homebuilding rebounded less than expected from a nine-month low in July, suggesting the housing market was likely to tread water for the rest of this year against the backdrop of rising mortgage rates.
Housing starts rose 0.9 percent to a seasonally adjusted annual rate of 1.168 million units last month, the Commerce Department said on Thursday. Data for June was revised down to show starts declining to a 1.158 million-unit rate, the lowest level since September 2017, instead of the previously reported 1.173 million-unit pace. Economists were looking for a rise of 1.260 million units last month.
Building permits increased 1.5 percent to a rate of 1.311 million units, snapping three straight months of decreases. Economists were expecting an increase of 1.310 million units.