November 2024, Nvidia headquarters in Santa Clara, California.
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This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Market digests Nvidia earnings report
US market After digesting Thursday’s rise NVIDIA Earnings Release. Its shares rose just 0.5%. letter The U.S. Department of Justice called on Google to divest Chrome, and the stock price fell 4.7%. Asia-Pacific stock markets were mixed on Friday. Japanese Nikkei 225 Index Hong Kong stocks rose 0.87% after the release of inflation data Hang Seng Index down 1.58%.
Japan’s overall inflation rate falls
Japan’s inflation rate fell to 2.3% in October from 2.5% in September. However, the “core-to-core” inflation rate tracked by the Bank of Japan, which excludes fresh food and energy prices, rose to 2.3% from 2.1% last month. A Reuters survey showed that more than half of economists expect the Bank of Japan to raise interest rates by 25 basis points in December.
Fallout from Adani accusations
Adani Group on Thursday denied bribery and fraud charges leveled by U.S. authorities against group chairman Gautam Adani, calling the accusations “baseless.” However, CNBC’s Ganesh Rao writes that the existence of these accusations could dampen investor enthusiasm for the Indian market and put Indian regulators under scrutiny.
Foreign automakers need to partner with Chinese automakers
Automakers around the world, such as those in the U.S. General MotorsGerman Volkswagen and Japan’s Nissan Motor Co. are seeing declining sales in China, where domestic automakers such as BYD and Geely dominate the market. Analysts say that to survive in China, foreign automakers need to partner with Chinese companies.
(PRO) Stimulus measures boost Chinese market
Says Chinese markets are “turning things around” after Beijing rolled out multiple stimulus measures to boost the economy HSBC. “The market has responded positively to these moves so far,” HSBC analysts wrote in a Nov. 19 report, in which they selected two Chinese stocks to hold in 2025.
bottom line
and NVIDIA Earnings are no longer holding back, and markets may be returning to some semblance of normalcy after a month of craziness that included the U.S. presidential election, a 25 basis point rate cut by the Federal Reserve, Russia ramping up its nuclear rhetoric, and more.
U.S. markets took everything in stride and took several steady steps forward on Thursday. this S&P 500 Index up 0.53% Dow Jones Industrial Average up 1.06% Nasdaq Index Most were flat.
“I think the market is finally finding its footing for two reasons: one is recovering from the post-election hangover after the first week, and two is the reaction to Nvidia’s earnings,” Nuveen chief information officer Saira Malik told CNBC.
Nvidia reported incredible third-quarter financial results by most standards. Its revenue nearly doubled year-on-year and its net profit surged.
But we already know that investor restraints on Nvidia extend beyond the stratosphere. Despite Nvidia’s impressive profits, the chipmaker’s slowing growth and relatively conservative forecasts for its future sales have kept investors away.
Nvidia shares rose just 0.5% after falling in premarket trading.
For comparison, let’s look at data analysis software snowflake. Its third-quarter revenue increased by 28% year-on-year (remember Nvidia’s growth was 94%), and the company’s net loss expanded. But investors were so excited that they pushed its shares up 32.7%, giving Snowflake its best day ever.
This difference may seem confusing. But this is not unusual for the market, as expectations determine stock price movements.
If investors expect a company to make a huge loss and the company makes a dollar of profit, the stock price is likely to rise. A bit of an exaggeration, but still. This is just the normal planning of the market.
—CNBC’s Jesse Pound, Samantha Subin and Alex Harring contributed to this report.
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