Market Mixed Ahead of Nvidia Earnings; Box Up on Strong EPS

A recent report highlights mixed market performance, with notable declines in chip stocks and positive gains from Box Inc. and Kohl’s following better-than-expected earnings forecasts. Investors remain cautious ahead of Nvidia's crucial earnings report this evening.

Date: 11-09-2024

AI Rating: 6

The report reveals a mixed market landscape affected by various company performances. Notably, Nvidia's upcoming earnings report is anticipated to be a significant driver for market sentiment, with the expectation of a substantial revenue growth for Q2 projected at +70% year-over-year to $28.86 billion, and Q3 forecasted at $31.85 billion.

On the positive side, Box Inc. reported a better-than-expected Q2 adjusted EPS of 44 cents, exceeding the consensus of 41 cents. Furthermore, Box has raised its 2025 adjusted EPS forecast to a range of $1.64-$1.66, which is stronger than the previously estimated range of $1.54-$1.58 and above the consensus of $1.62, signaling a favorable outlook for the company.

Kohl’s also had a positive announcement, raising its 2025 EPS forecast to $1.75-$2.25 from a previous estimate of $1.25-$1.85, far exceeding the market consensus of $1.53. This could positively impact investor sentiment and stock performance.

However, several companies in the market are experiencing downturns, particularly in the chip sector, which is down due to general weakness. Notable declines were recorded for Super Micro Computer, which dropped over -24% after announcing a delay in filing its Annual Report, and Foot Locker, which fell more than -12% after cutting its 2025 gross margin forecast. Similarly, J M Smucker was down more than -5% after lowering its full-year net sales forecast.

Despite the overall mixed performance and the negative sentiment in some quarters, the strong earnings guidance from certain companies like Box and Kohl's suggests selective opportunities for investors who can navigate the volatility. Overall market dynamics appear influenced by pending earnings results from leaders such as Nvidia, which may shift investor sentiment further in the upcoming trading sessions.

Stocks: BOX KSS NVDA SJM SMCI FL