Following a landmark earnings report, NVIDIA (NVDA, Financial) has become the talk of Wall Street, with shares soaring over 13% as the company's Q4 performance and guidance exceeded expectations. The chipmaker's CEO, Jensen Huang, announced a revenue forecast of $24B for the first quarter of fiscal 2025, surpassing analysts' predictions of $21.9B. The company's adjusted gross margin is expected to be around 77%, with operating expenses projected at $2.5B. Huang emphasized the significant impact of generative AI, which he described as having reached a "tipping point," with demand skyrocketing globally across various sectors.
Amidst the tech sector's rally, stock index futures indicated a positive market opening, with Nasdaq 100 futures (NDX:IND) up 2.1%, S&P futures (SPX) climbing 1.3%, and Dow futures (INDU) increasing by 0.5%. The enthusiasm wasn't limited to U.S. markets, as Japan's Nikkei (NKY:IND) (NTETF) surpassed its 1989 intraday high, marking a significant milestone and continuing its impressive performance with a 16.5% gain over the past year.
Initial jobless claims in the U.S. for the week ending February 17 fell to 201K, lower than the anticipated 217K and down from the previous week's revised figure of 213K. The four-week moving average also decreased, and the seasonally adjusted insured unemployment rate dropped slightly to 1.2%. These figures suggest a resilient labor market, potentially influencing the Federal Reserve's monetary policy decisions.
Shares of major U.S. wireless carriers AT&T (T, Financial), Verizon (VZ, Financial), and T-Mobile (TMUS, Financial) experienced a slight premarket dip following a widespread cellular outage that affected over 60,000 AT&T subscribers and disrupted emergency services. The outage, which began around 4 a.m. EST, also impacted AT&T's FirstNet, a network used by first responders. Verizon reported that its network was operating normally, despite some customers facing issues.
Gilead Sciences (GILD, Financial) saw its shares decline in premarket trading after Truist Securities downgraded the pharmaceutical company to Hold from Buy. The downgrade followed recent changes to Gilead and its partner Arcus Biosciences' (RCUS, Financial) cancer development programs, including the discontinuation of a Phase 3 trial for a lung cancer therapy. The analyst noted that the reprioritization of studies would delay results until at least 2025.
Among the notable stock movers, Venus Concept (VERO, Financial) surged 79% after announcing the CE Mark for its Venus Versa Pro system in Europe. Other significant gainers included Root Inc (ROOT, Financial) and Ocular Therapeutix Inc (OCUL, Financial), while Rivian Automotive (RIVN, Financial) and Lucid Group (LCID, Financial) were among the biggest losers following their earnings releases.
Apple (AAPL, Financial) and other smartphone manufacturers faced a slump in U.S. sales during January, with a 10% year-over-year decline. Despite the overall decrease in sales, Apple's iPhone models continued to dominate the market, securing 65% of all units sold during the month. The market anticipates a rebound in February with the release of new products like the Galaxy S24 series.
B. Riley Financial (RILY, Financial) experienced a 21% pre-market jump after the company's board audit committee confirmed proper conduct in relation to the management-led buyout of Franchise Group. The internal review, led by outside counsel, also found no involvement or knowledge of alleged misconduct concerning Prophecy Asset Management.
NVIDIA's (NVDA, Financial) strong earnings and the tech sector's rally are leading the market narrative, with generative AI's emergence as a pivotal factor in the industry's growth. The labor market's resilience and the cellular outage affecting major carriers also captured investor attention. As the market responds to these developments, the following stock tickers are relevant to today's news:
