Morning in New York: Nvidia's quarterly report in focus

Daily review and forecast of events on the U.S. stock market from Mikhail Denislamov, Deputy Director of Freedom Capital Markets Research.

US President Donald Trump has confirmed raising tariffs on imports from India to 50%. This aggravates trade relations between the two countries and increases inflationary risks for American consumers. India is one of the five largest economies in the world, and the States remain its main trading partner: they account for almost 20% of the country's exports. The textile, jewelry, pharmaceutical and machine-building industries, which are key to the Indian economy, are under attack. The increase in duties threatens to disrupt the China+1 strategy, which consists in the transfer of supply chains from China to India by Western corporations in order to diversify risks. In addition, the mentioned decision of the White House creates additional pressure on domestic demand in the U.S., as the prices of consumer goods will increase. It is possible that New Delhi will respond with mirror measures, which will hit US exporters in the energy, chemical and aerospace industries. Nevertheless, chances for a resolution of the trade conflict remain.

The key event for the stock market today will be Nvidia's report. Consensus expects its revenue to grow by more than 50% YoY to $46.05 billion, with EPS of $1.01. Of importance to investors will be CEO Jensen Huang's comments on new products, including the Rubin lineup, as well as the prospects for shipments to China following the H20 chip agreement with U.S. authorities. Haydens for the next quarter will traditionally be crucial for the issuer's quotation dynamics. Despite the risk associated with export restrictions, Nvidia remains the main beneficiary of the generative AI boom. Its quarterly results may become a determining factor not only for the dynamics of the shares of the company itself, but also for the entire stock market.

Williams-Sonoma (WSM), Kohl's (KSS), J.M. Smucker (SJM), Abercrombie & Fitch (ANF), Royal Bank of Canada (RY) and Tiger Brokers (TIGR) will report quarterly results before the open. Nvidia (NVDA), CrowdStrike (CRWD), Snowflake (SNOW), Veeva Systems (VEEV), HP (HPQ), Agilent Technologies (A), and NetApp (NTAP) will report after the end of the main session.

Futures on American indices show unimpressive dynamics. We assess the balance of risks for the upcoming session as neutral with an average level of volatility. We focus on the S&P 500 movements in the range of 6420-6510 points (from -0.7% to +0.7% to the closing level of the previous session).

- MongoDB (MDB) shares rose nearly 30% in the postmarket after the company released strong quarterly earnings. The company's earnings per share reached $1 with a consensus of $0.66, while revenue rose to $591.4 million with average guidance of $478.1 million. The company again raised its full-year FY 2026 guidance for the aforementioned metrics, this time to $3.64-3.73 billion and $2.34-2.36 billion, respectively. The acceleration of Atlas' cloud service growth to 29% YoY and the expansion of its customer base by 2,800 customers boosted investor optimism.

- Electromed (ELMD) shares rose 20% on the back of a report that reported revenue of $17.4 million with EPS of $0.26 and an operating margin of 18.3%. The results were supported by stronger demand for home healthcare services and strict cost control.

- nCino (NCNO) stock is up 11% in the post-market as the company reported quarterly earnings of $0.22 per share versus consensus of $0.14, while revenue rose 12% YoY to $148.4 million versus expectations of $143.1 million thanks to robust demand for cloud-based banking solutions.

- Shares of Okta (OKTA) are up 6.3% following the release of its quarterly earnings. The issuer's EPS was $0.91 with a consensus of $0.84, while revenues rose 13% YoY to $728 mln. The company improved its full-year guidance and reported a growth in orders (CRPO) to $2.27 bln. The revenue guidance for the current quarter includes $729 mln, while the market average guidance is $721 mln.

- PVH (PVH) stock reacted to the quarterly release with an 8% increase. The company reported EPS of $2.52 with a consensus of $2 and revenues of $2.17 billion. These results were driven by higher product sales for the Tommy Hilfiger (+4%) and Calvin Klein (+5%) brands. Management maintained its full-year EPS guideline of $10.75-11, confirming the resilience of demand in the premium segment.

August 26 trading on the U.S. stock exchanges ended on a positive territory. S&P 500 added 0.41%, Nasdaq 100 rose by 0.43%, Dow Jones rose by 0.3%, Russell 2000 - by 0.83%. The "bulls" were supported by expectations of an imminent Fed rate cut and capital inflows into cyclical sectors. Shares of the "Magnificent Seven" showed multidirectional dynamics: Tesla (TSLA: +1.46%) looked stronger than the others, while Alphabet (GOOGL: -0.65%) traded weaker than the market. Most sectors of the broad market closed in the plus. Industrial companies (XLI: +1.03%) and financial sector (XLF: +0.77%) were the leaders of growth. The outsiders were producers of essential commodities (XLP: -0.65%) and telecoms (XLC: -0.44%).

Durable Goods Orders data for July showed a 2.8% m/m decline (consensus: -3.9%, June: -9.4%). The index excluding transportation increased by 1.1 m/m (consensus: +0.2%), which was the best result since September last year. The Consumer Confidence Index from the Conference Board in August was 97.4 points (consensus: 96.5, July: 98.7), inflation expectations of respondents rose, and the assessment of the labor market deteriorated again.

- Shares of EchoStar (SATS: +70.3%) reacted with explosive gains on news of AT&T's plans to acquire national wireless spectrum licenses from it for $23 billion in cash. The deal is expected to close in mid-2026.

- Semtech (SMTC: +15.1%) reported second quarter record sales across all business segments. Management's revenue guidance for the third quarter exceeded consensus.

-Eli Lilly (LLY: +5.9%) presented successful results from a trial of a tablet form of its weight loss drug, confirming its efficacy in the treatment of diabetes.

- According to Bloomberg, the criminal investigation into UnitedHealth Group (UNH: -1.5%) has expanded to include its Optum Rx and physician payments units as well.

This article was AI-translated and verified by a human editor