Today’s Big Picture

Asia-Pacific equity markets finished the day mixed. China’s Shanghai Composite fell 0.79%, Taiwan’s TAIEX declined 0.61% and Australia’s ASX All Ordinaries closed 0.16% lower. Both Hong Kong’s Hang Seng (0.00%) and South Korea’s KOSPI (0.05%) ended the day flat while India’s SENSEX rose 0.14% and Japan’s Nikkei gained 0.29% after bouncing off generational highs yesterday. European markets are ahead in midday trading, and U.S. equity futures point to a higher open.

Following the recent barrage of retailer earnings and those from stock market stalwart Nvidia (NVDA) last night and yesterday’s November Fed meeting minutes, we are likely to see trading volumes thin as we move into afternoon trading. AAA projects over 55 million are expected to travel for the Thanksgiving holiday this year, with most doing so between today and Sunday. The Transportation Security Administration is predicting record-breaking passenger volume this year and expects to screen more than 30 million people between November 17-November 28.

The next edition of Daily Markets will be published on Monday, November 27 and when we return, we’ll recap findings from the Black Friday shopping weekend and discuss expectations for Cyber Monday. Happy Thanksgiving!

Data Download

International Economy

At 10 AM ET, the November Flash Consumer Confidence for the Eurozone will be released, and it’s expected to improve modestly to -17.6 compared to October’s -17.9 reading.

Domestic Economy

Before we hit the road for Thanksgiving, we will receive the latest weekly data for the MBA Mortgage Applications Index and crude oil inventory data. Also being published today are the October Durable Orders, which are expected to fall 3.1% following September’s 4.7% gain. Following that data at 8:30 AM ET, the Final November print for the University of Michigan Consumer Sentiment Index will be out at 10 AM ET. The final reading is expected to clock in at 60.5, down from 63.8 for October.

Markets

Yesterday’s earnings from Lowe’s (LOW) and Best Buy (BBY) saw both companies miss top line estimates and provide lower guidance throwing up a caution flag on consumer spending, which helped send Amazon lower in sympathy, pushing Consumer Discretionary 0.26% lower. Overall, the day was fairly low key as outside of Technology (-0.81%), sectors posted returns between -0.50% and 0.60%. Broad indexes ended lower as the Dow declined 0.18%, the S&P 500 fell 0.20%, the Nasdaq Composite gave back 0.59% and the Russell 2000 closed 1.32% lower.

The trend of the market punishing EPS misses continued as shares of Jacobs Solutions (J) fell 8.69% after the company missed EPS estimates by $0.11 despite beating revenue projections, prompting at least one research firm to downgrade the name to “Market Perform.”

Here’s how the major market indicators stack up year-to-date:

Dow Jones Industrial Average: 5.86%
S&P 500: 18.20%
Nasdaq Composite: 35.67%
Russell 2000: 1.25%
Bitcoin (BTC-USD): 116.67%
Ether (ETH-USD): 62.20%
Stocks to Watch

Before U.S. equity markets begin trading today, Deere & Co. (DE) will report its latest quarterly results.

As expected, pre-market breadth is a little lighter this morning, as 213 names in the S&P 500 have traded hands so far with 149 gainers and 64 decliners. Names seeing a pre-Thanksgiving boost include Edison International (EIX) and International Flavors & Fragrances (IFF) while Deere & Company (DE) and AutoDesk (ADSK) are coming under some pressure.

Nvidia (NVDA) reported October quarter results that trounced investor expectations and guided revenue for the current quarter to $19.6-$20.4 billion, ahead of the $17.96 consensus but not high enough to top the high end of that range at $21 billion. While the company’s revenue guidance is up significantly compared to the $6.05 billion booked in the January 2023 quarter, the implied sequential growth is tamer at 8%-11% and should be driven by driven by data center, compute and networking. The company shared sales to China and other affected destinations from U.S. export curbs subject to licensing requirements have consistently contributed 20%-25% of data center revenue over the past few quarters and are expected to decline “significantly” in the current quarter.

HP (HPQ) reported October quarter results that met consensus expectations and guided current quarter EPS to $0.76-$0.86 versus the $0.86 consensus. For the October quarter, Personal Systems revenue was $9.4 billion, down 8% YoY with Consumer revenue down 1% and Commercial PS revenue down 11%. Total units were flat with Consumer units up 9% and Commercial units down 6%. Printing segment revenue was $4.4 billion, down 3% YoY with Consumer down 21% and Commercial down 4%.

Inter Parfums (IPAR) reaffirmed its 2023 guidance that calls for EPS of $4.75 on revenue of $1.3 billion compared to the $4.71 and $1.31 billion consensus figures. The company also introduced 2024 guidance for EPS of $5.15 and revenues of $1.45 billion. The company shared that, “With ongoing momentum in the fragrance market, coupled with innovative blockbusters, enrichment from line extensions, and incremental sales from our newest brands, Roberto Cavalli and Lacoste, 2024 has all the attributes of another record year for us.”

October quarter results at Nordstrom (JWN) were mixed relative to consensus forecasts, with EPS better than expected while revenue for the quarter came in at $3.32 billion vs the $3.41 billion expectation. The company’s gross merchandise volume fell 7.1% YoY with net sales for its Nordstrom banner falling 9.4% and 1.8% at Nordstrom Rack. For its fiscal 2024, Nordstrom guided EPS to $1.90-$2.10 versus its prior guidance of $1.80-$2.20 and the $2.01 consensus.

Jack in the Box (JACK) reported September quarter EPS that missed consensus expectations even though revenue for the quarter that fell 7.5% YoY matched consensus expectations. Despite the year-over-year drop in revenue, Jack in the Box same-store sales were up 3.9% in the quarter, which were offset by the 1.5% decline in comp sales for Del Taco. For its fiscal 2024, Jack sees EPS of $6.25-$6.50 compared to the $6.60 consensus with same-store sales for both Jack in the Box and Del Taco in the low-to-mid-single digits.

IPOs

Readers who want to dig deeper into the upcoming IPO calendar should visit Nasdaq’s Latest & Upcoming IPOs page.

After Today’s Market Close

There are no companies slated to report their quarterly results after equities stop trading. Those looking for more on upcoming quarterly earnings reports should head on over to Nasdaq’s Earnings Calendar.

On the Horizon

Thursday, November 23

Eurozone: HCOB Flash Manufacturing & Services PMIs – November
UK: S&P Global/CIPS Flash Manufacturing & Services PMIs – November

Friday, November 24

Japan: Inflation Rate – October
Japan: Jibun Bank Flash Manufacturing & Services PMIs – November
Germany: Ifo Business Climate Index – November
US: S&P Global Flash Manufacturing & Services PMIs – November
Thought for the Day

“What if today, we were grateful for everything?” ~ Charlie Brown

Disclosures

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Original: Earnings Feed: Daily Markets: Investors Get Ready for Thanksgiving Holiday