US stocks continue to decline ahead of Nvidia’s latest report

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Note: Figures recorded at 7:40am AEDT. Updated figures and a video recording will be available at 9am AEDT.

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US stocks declined for a third day in a row Wednesday as traders look ahead to Nvidia’s latest quarterly earnings report.

The Dow Jones Industrial Average traded 151 points lower, or 0.4%. The S&P 500 slipped 0.5%, and the Nasdaq Composite slid nearly 1.1%.

Nvidia is slated to post its fiscal fourth-quarter results after the bell. Concerns surrounding Nvidia’s high valuation have grown leading up to the announcement, as shares of the chipmaker have soared about 230% over the past year. The stock slid more than 3.5% Wednesday.

Elsewhere in corporate news, Palo Alto Networks shed more than 27% after the cybersecurity company cut its full-year revenue guidance. SolarEdge Technologies lost roughly 12%, dropping on weak first-quarter guidance.

Minutes released Wednesday from the Federal Reserve’s January meeting—which came on the back of hotter-than-expected economic data the previous week—indicated that central bankers are in no hurry to cut interest rates. Fed officials had decided to leave their key overnight borrowing rate unchanged, and also indicated that no rate cuts would occur until the Federal Open Market Committee has “greater confidence” that inflation is slowing down.

Oil prices rose on Wednesday following indications from Federal Reserve officials suggesting that interest rates have reached their peak, with West Texas Intermediate settling at $77.91 a barrel and Brent futures at $83.03 a barrel. The rise coincides with Fed minutes revealing agreement among officials that rates should not be cut until there's greater confidence in controlling inflation, amidst ongoing tensions in the Middle East involving Israel, Hezbollah, Houthi militants, and Iran.

In the Australian landscape, Rio Tinto announced a 12% decline in underlying profit post-Wednesday's market close, attributed to softer commodity prices and escalating costs, alongside a final dividend payout of $US2.58 per share. Meanwhile, Saint-Gobain unveiled a $4.3 billion bid for CSR, securing due diligence from the ASX-listed company’s board with a $9 per share offer; on Thursday, various companies including APA Group, Fortescue, Qantas, and The Reject Shop are anticipated to report. 


One Australian dollar at 7.40am was buying 65.48 US cents.

Figures around the globe

European markets closed mixed. London’s FTSE fell 0.73 per cent, Frankfurt added 0.29 per cent, and Paris gained 0.22 per cent.

Turning to Asian markets, Tokyo’s Nikkei fell 0.26 per cent, Hong Kong’s Hang Seng gained 1.57 per cent and China’s Shanghai Composite added 0.97 per cent..

Yesterday, the Australian share market closed 0.66 per cent lower at 7,608.36.

Australian United Investment Company (ASX:AUI) is paying 17 cents fully franked
Bendigo and Adelaide Bank (ASX:BEN) is paying 30 cents fully franked
Deterra (ASX:DRR) is paying 14.89 cents fully franked
Diversified United (ASX:DUI) is paying 7 cents fully franked
JB Hi-Fi Limited (ASX:JBH) is paying 158 cents fully franked
Microequities Asset Management Group (ASX:MAM) is paying 1.8 cents fully franked
Virgin Money Uk PLC (ASX:VUK) is paying 3.8153 cents unfranked
Whitehaven Coal (ASX:WHC) is paying 7 cents fully franked

Dividends payable
5G Networks Ltd (ASX:5GN)
Dexus Industria REIT (ASX:DXI)
Dexus Convenience Retail REIT (ASX:DXC)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

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