The Daily Breakdown looks at the week ahead, including earnings for Nvidia, Salesforce, Snowflake and more.
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What’s Happening?
After Friday’s rally, markets are mixed Monday as investors continue to digest a flurry of developments. Friday delivered hotter-than-expected inflation, disappointing fourth-quarter GDP growth, and a Supreme Court ruling against President Trump’s tariffs. But the tariff story isn’t over — while the prior framework was deemed unlawful, the White House is already working on new legal scaffolding to pursue broad-based import levies.
What to Watch
It’s the final week of February, and despite some big winners and losers, the S&P 500 is up just 0.5% year to date. The economic calendar is lighter this week: Tuesday’s consumer confidence (10 a.m. ET) and Friday’s PPI are the main highlights, alongside a few Fed speakers.
Earnings
Earnings season also picks up pace this week, with reports due from Domino’s Pizza, Hims & Hers Health, Mercado Libre, Salesforce, Snowflake, Rocket Lab, SoundHound, Duolingo, and more. Just as notably, retailers like Lowe’s, Home Depot, and TJX Companies join the docket, offering a read on the Main Street vibe. And, of course, there’s Nvidia. More on that, below 👇
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The Setup — Nvidia
Nvidia remains the largest company in the S&P 500, with a $4.6 trillion market cap. It’s been a quiet stretch for this name lately, with shares up about 1% year to date and up less than 2% since the start of the fourth quarter. Even though we’ve heard about the massive spending plans from the Magnificent 7, investors will still look for direction from Nvidia when it reports.
Analysts expect earnings per share of $1.50 on revenue of $65.6 billion, with in-line results representing growth of 68% and 67%, respectively. Investors will also look to see if earnings can snap NVDA out of its trading range, with shares bouncing between the low-$170s and the mid-$190s since the summer.
Options
As of February 20th, the options with the highest open interest for Nvidia stock — meaning the contracts with the largest open positions in the options market — were the March $200 calls.
Investors who are bullish could consider calls or call spreads as one way to speculate on further upside, while bearish investors could consider puts or put spreads to speculate on a further move to the downside. For options traders, it may be advantageous to have adequate time until the option’s expiration.
To learn more about options, consider visiting the eToro Academy.
What Wall Street’s Watching
GOOGL
Alphabet was the best-performing Magnificent 7 holding on Friday, rallying 4%. The jump was enough to boost the stock’s year-to-date performance into positive territory. With shares up about 70% over the past 12 months, Alphabet remains a top-performer within the mega-cap space. Dig into the fundamentals for GOOG.
BTC
After inching lower over the weekend, Bitcoin is trying to bounce off the overnight lows. At one point, shares were down about 5%, dipping below $65,000. Now down about 2% on the day, bulls are trying to erase some of the early-week losses. Check out the charts for BTC.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.