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Stock Market today: Dow ends lower as Nvidia slip dents tech, but Walmart shines

Published 02/19/2024, 08:16 PM
Updated 02/20/2024, 04:05 PM
© Reuters

Investing.com -- The Dow fell Tuesday, as investors turned cautious on Nvidia ahead of its quarterly results, and the minutes from the Federal Reserve's January meeting due later this week.

By 16:00 ET (21:00 GMT), the Dow Jones Industrial Average was down 63 points, or 0.2%, the S&P 500 index fell 0.6%, lower and the NASDAQ Composite dropped 0.9%.

Nvidia slip drags on tech

NVIDIA Corporation (NASDAQ:NVDA) fell more than 4% pressuring the broader tech sector lower as investors turned cautious ahead of the chipmaker's quarterly results due Wednesday.  

Ahead of Nvidia's results, some on Wall Street are expecting the company to not only beat quarterly estimates, but also deliver better than expected guidance amid AI-led chip demand.  

"The only question around NVDA's near-term performance and outlook, in our view, is to what magnitude results and guidance will exceed our (and consensus estimates)," Wedbush said in a note.   

Intel Corporation (NASDAQ:INTC), however, sidestepped the move lower in chip stocks to rise more than 2% after Bloomberg reported late last week that the Biden administration is in talks to award more than $10 billion in subsidies to the semiconductor firm.

Fed minutes to guide rate-cut thinking

The Fed is set to release the minutes of its January meeting on Wednesday that could provide more insight into the central bank’s thinking, with markets currently pricing in four quarter point rate cuts this year, starting in June.

"For now, market pricing is consistent with our call for 100bps of cuts, starting in June," Morgan Stanley said in a note.

Following consumer and producer prices last week prompted concerns that the Federal Reserve will keep interest rates at more than two-decade highs for longer than had been expected at the start of the year.

A slew of Fed speakers this week, including Atlanta Fed President Raphael Bostic, governors Lisa Cook and Christopher Waller, along with Vice Chair Philip Jefferson could also provide further potential clues on monetary policy.  

Walmart shines after Q4 beat, annual dividend hike; Home Depot stumbles

Supermarket giant Walmart (NYSE:WMT), a major Dow component, rose more than 3%, after the low-cost retailer's fourth-quarter U.S. sales and earnings beat estimates, prompting the retail behemoth to raise its annual dividend by 9%. Walmart also confirmed it would buy smart TV market Vizio for $2.3 billion to bolster its advertising business. 

Elsewhere in the retail sector, Home Depot (NYSE:HD) cut losses to close just above the flat line after the home improvement retailer posted a dip in fourth quarter comparable sales from a year ago, as cash-strapped shoppers reined in expenditures on major property improvements, opting instead to focus on smaller and cheaper projects.

"We continue to expect HD sales trends to improve through 2024 and see potential for upside to guidance," Wedbush said in a Tuesday note.

Capital One to acquire Discover Financial in $35B deal 

Capital One said it would acquire Discover Financial Services (NYSE:DFS) in a $35.3 billion deal, creating the largest U.S. credit card company by loan volume, sending shares of the latter more than 14% higher. 

The deal, which is expected to close in later this year or early 2025, may face regulatory headwinds, RBC said. "Given the transaction creates an over $600 billion asset banking organization, as well as consolidates the credit card market, we see the regulatory hurdles as high," it added.

(Peter Nurse, Amber Warrick contributed to this article.)

Latest comments

NVDA will exceed expectations but will disappoint in terms of the future demand. It will end up lower after earnings, then rocket over the next two months!
Still in fantasy land with the 100bps rate cut starting in June. Maybe June 2025.
No freaking way Khan, Yellen, Biden & Co allow that merger. No. Freaking. Way.
Bidenomics will allow increased competition in the credit card market.
Another mad rush into the most grossly overvalued stocks in history, as savvy "investors" once again load up in the final minutes.  Where are the sellers that take profits in the final minutes during criminally manufactured "rallies?"  How much of a JOKE can this "market" really get?
another show mindless complaining, and ignorance of market history from Mitch.
wow
While criminally manufactured "rallies" set one closing high after another, every single loss is met with savvy "Investors" rushing into "buy" before the close.  More losses flagrantly whisked out of the system in the BIGGEST INVESTMENT JOKE IN THE WORLD.
LOL!!!!!!!
another dimwitted remark from Mitch. he doesn't know we are in a bull market. this is what they look like.
more ignorance from Mitch..he doesn't know what a bull market looks like.
The Fed and NVIDIA rules the market... it's hilarious.
  I've made emotional trade.  Let's all strive to be one of those rare people who set emotions aside when trading/investing and use only facts/data.
Nyak! Nyak!
  Pierre Ferrand!
Apparently Intel needs 10bn 🤣🤣🤣 joke when any other country do this, US calls it state support and slap tariffs on countries that do it 🤣
Wrong.
The US should do it because other countries are already doing it, and US tariffs didn't reverse their policies, so US gov't aid accomplishes fairer trade.  Free trade was killed by other countries already.  And US should do it because losing the ability to manufacture chips is a grave national security issue.
that was last yr.
Looks like an early start to the "late trade" magic show in the laughingstock of the financial world.
All Mitchel says is My 😺 hurts
let me guess what's your pronoun?
'early start to the "late trade"' just means it's NOT a "late trade".
Cant hear this anymore. The market got hyped since december without any valid underlying data. Now still hope for rate cuts where the economy parameters showed the opposite. Even so it is unlikely, still hopes are there! I am really speechless how the big media manipulates little investors with such claims. But that was always like this.
its the election year, c'mon
  Quit aping Mark.
Date for rate cut start did get pushed back in recent days/weeks.  Do find out what's up before whining.
Rate cut uncertainty? If you don't know by now, you'll never know.
that's code for please don't show how bad things are before the election
  Quit politisizng everything.
10AM breaker fire right on schedule.  Remarkable how it vanishes into thin air during a "rally."  Fraudulent, criminally manipulated JOKE.
Same message every day... 🤷🏼‍♂️
What "10AM breaker fire"?  SPX was in downtrend from 9:59am - 10:32am.  Do you even look at the charts before posting?
mitch still making a fool of himself with this constant crowing of complaints and ignorance.
US30 is selling
rubbish reason, just wanna cheat the bears
Cheat bears? or bulls?
"Reason"?  This article doesn't use the words "cause" nor "because".
Censored again by the liberal hacks at investing.com
yeah, me too - they don't want anyone to be too negative on here - got to keep the whole pump going no matter what
Paranoid magabillies exhibit yet again their ability to concoct conspiracies to explain their lack of comprehension of their encounters with the world. There is a word filter that will flag comments. Get around it by using alternative spellings, dlum flux.
 Watch the language you Joe Tater Head voter.
Modern investors have all of the backbone of an amoeba, and the risk tolerance of a panic-ridden chihuahua. Sheesh, watching you guys is like watching my neighbor's ADHD kids.
Mark so right. You got it so right. it's you and me friend. it's why I generally don't contribute to the dysfunctionals.
perhaps mark,you and Stuart should find a different way to invest, if you're unwilling to learn how these markets operate, and have operated for the last 100 years.
Truckers for Trump shut NYC down, should shutdown the entire loser state as with California.
Jim's post did not age well since Chicago Ray has already backed off on any call for action.
 You seem pretty ignorant.
and move to NK.
always assigning a resson that's complete baloney.
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