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Market Movers Walmart and Nvidia are Set to Report While Oil Demand Falls for 2024

Miguel A. Rodriguez
Miguel A. Rodriguez
20 February 2024

It's a week filled with anticipation as the spotlight is on Walmart and Nvidia's earnings. Eyes are also on the Fed's minutes for interest rate direction. Meanwhile, oil demand sees a cut. Read on to stay updated with the latest daily market insights.

U.S. Stock Market Pause

The U.S. stock markets took a breather on Monday, observing Presidents' Day. With the markets closed, investors are on standby for significant earnings announcements and crucial economic updates slated for the week including Nvidia, Walmart, and the FOMC January Meeting minutes.

Earnings Spotlight: Walmart and Nvidia

Walmart (WMT) is set to unveil its results today, offering insights into American consumer spending patterns. The latest retail sales figure (published last week) showed a notable decline in January; however, this data does not seem to affect the last quarter for Walmart. Revenue is expected to rise to $170 billion, up from $150 billion in the previous quarter.

Nvidia (NVDA) is also reporting tomorrow, February 21st, with high expectations as one of the leading AI technology providers and chip makers. 

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Walmart daily chart, February 20, 2024. Source: CAPEX.com WebTrader.              

Federal Reserve's Insights are Awaited

This week's economic highlight is the release of the minutes from the Federal Reserve's January policy meeting on Wednesday. These minutes might offer insights into how officials view the evolution of interest rates in the next months.

Last month, the Federal Reserve kept interest rates at their highest in over two decades. Chairman Jerome Powell stressed that the Federal Open Market Committee (FOMC) needs more proof that inflation is steadily dropping towards their 2% goal before considering rate cuts.  

Powell mentioned that he doesn't primarily anticipate a rate reduction in March. He has repeated this stance, noting that recent inflation and employment figures have been strong. This suggests the Fed might postpone any rate cuts for now. Any signs of a more adaptable approach in the minutes could positively influence the market.

Oil Prices Defy Demand Concerns

Oil prices continued to rise yesterday despite reports showing a possible slowdown in demand.

The International Energy Agency warned last week of a slowdown in demand for 2024; the warning came just as data showed the UK and Japan entering recession.

The WTI oil future reached a high yesterday in the resistance zone around 78.50, levels that have not been exceeded since November of last year.

    

 

Key Takeaways

  • U.S. markets were closed for the holiday, traders anticipate a week filled with earnings and economic updates.
  • Walmart's upcoming earnings today could reveal new trends in consumer spending.
  • The Fed's January meeting minutes are highly anticipated for future rate insights.
  • Oil prices surge despite potential demand decreases, highlighting market complexities.

 

 

Sources: Bloomberg, Reuters 

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Miguel A. Rodriguez
Miguel A. Rodriguez
financial_writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.