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Lowe’s falls on annual forecast cut
Best Buy down on weak outlook
Kohl’s slips on quarterly sales miss
Fed meeting minutes due 1400 ET
Futures down: Dow 0.13%, S&P 0.18%, Nasdaq 0.30%
Updated at 8:21 a.m. ET/1321 GMT
By Amruta Khandekar and Shristi Achar A
Nov 21 (Reuters) – U.S. stock indexes were on track for a lower open on Tuesday as investors stayed on the sidelines ahead of artificial intelligence chip leader Nvidia’s quarterly report and the release of minutesfrom the Federal Reserve’s recent meeting.
A technology-fueled rally led the S&P 500 .SPX and the Nasdaq .IXIC to register their highest closing level in over three months on Monday, as investors continued to bet that the Fed was at the end of its rate hiking cycle.
Big Tech stocks, which have powered most of the S&P 500’s gains this year, now face an important test, with Nvidia due to report third-quarter results after markets close.
The chip designer is expected to deliver yet another strong revenue forecast but the focus will be on the impact of widening U.S. curbs on sales of its high-end chips to China.
Shares of Nvidia inched 0.4% lower in premarket trading while other megacap stocks were mixed.
“The market (is) digesting the big move yesterday,” said Robert Pavlik, senior portfolio manager at Dakota Wealth, adding that a year-end rally is still likely given better-than-expected earnings and moderating inflation.
Before the quarterly report, minutes of the Fed’s November meeting are likely to offer more cues on the monetary policy path after evidence of easing consumer and producer prices boosted expectations that U.S. interest rates had peaked. The minutes are due to be released at 1400 ET (1900 GMT).
Traders have fully priced in the probability that the Fed will hold interest rates steady in December, with 28% betting on the likelihood that the central bank will deliver a rate cut as soon as March, according to the CME Group’s Fedwatch tool.
“The economy is slowing. If they (the Fed) sit on their hands and let this continue to slide, then you start to worry that a soft landing might become a little bit of a bumpy landing,” said Pavlik.
A slew of downbeat forecasts from U.S. retailers painted a dour picture for consumer spending.
Lowe’s CosLOW.N fell 4.1% after the home improvement chain projected a bigger drop in annual comparable sales than previously expected and trimmed its profit forecast for the year.
Best BuyBBY.Nslipped 4.9% after the electronics retailer said it expects a steeper drop in annual comparable sales, while Kohl’s CorpKSS.Nshed 5.1% on missing third-quarter sales estimates.
This week is light in terms of economic data, with a report on existing home sales due later in the day. Trading volumes are also expected to be thin ahead of the Thanksgiving holiday.
Among other stocks, U.S.-listed shares of BaiduBIDU.O gained 1% as the Chinese internet search engine provider’s third-quarter revenue beat estimates.
Nvidia’s gains outpaces U.S. stocks in 2023 https://tmsnrt.rs/3SQbJmY
(Reporting by Amruta Khandekar and Shristi Achar A; additional reporting by Ankika Biswas; Editing by Maju Samuel)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.