Stocks Down Yesterday After FOMC Minutes, But Up In After-Hours Trade Following Another Great Earnings Report By NVIDIA

Market Moves You Need to See Stocks Down Yesterday After FOMC Minutes, But Up In After-Hours Trade Following Another Great Earnings Report By NVIDIA [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Down Yesterday After FOMC Minutes, But Up In After-Hours Trade Following Another Great Earnings Report By NVIDIA Stocks closed modestly lower yesterday after both the S&P and Nasdaq hit new all-time high closes the day before. The markets were essentially treading water for much of the morning and early afternoon yesterday ahead of the FOMC Minutes. Afterwards, they headed lower, but bounced off their worst levels by the close. As expected, the Minutes showed policymakers acknowledging that progress on inflation had slowed, and that "it would likely take longer than previously anticipated for them to gain greater confidence that inflation was moving sustainably toward 2 percent." This was largely communicated at their May 1 announcement, and subsequent press conference by Fed Chair, Jerome Powell. What was new to learn was that "various participants mentioned a willingness to tighten policy further should risks to inflation materialize in a way that such an action became appropriate." Granted, debate on what to do if things got worse, is different than taking action based on present circumstances. But it was surprising to read of a willingness to potentially tighten policy further, given that Mr. Powell (after that debate), said it was unlikely the Fed's next move would be a rate hike, and suggested the Fed was still expecting to cut rates later this year. Gladly, the friendlier PPI and CPI inflation reports since then suggest those worse case scenarios are unlikely to develop. In other news, NVIDIA reported earnings after the close and it was another decidedly good number. They posted a positive EPS surprise of 11.48%, and a positive sales surprise of 7.02%. That translated to a quarterly EPS growth rate of 595% vs. this time last year, and a sales growth of 262%. Moreover, they raised their outlook, increased their quarterly cash dividend, and said they will split their stock 10-for-1 on June 7. They were up roughly 6% with shares trading over $1,000 in after-hours trade. Looking at economic reports, MBA Mortgage Applications rose 1.9% w/w with purchases down -1.2%, but refi's up 7.4%. Existing Home Sales slipped to 4.14 million units (annualized) vs. last month's upwardly revised 4.22M (from 4.19M). That puts existing home sales down -1.9% m/m, an improvement from last month's -3.7% pace. On a y/y basis, it was down -1.9% as well, also an improvement from last month's -3.7%. The Atlanta Fed Business Inflation Expectations came in at 2.3% for the year-ahead period, unchanged from last month's expectations for the same. Today we'll get Weekly Jobless Claims, the Chicago Fed National Activity Index, the PMI Composite Index, and New Homes Sales. We'll also get more earnings with another 136 companies on deck to report with Medtronic and NetEase going before the open, and Intuit, Ross Stores and Autodesk reporting after the close, to name a handful. And, of course, we'll see if yesterday's earnings beat by NVIDIA, which shows there's no end in sight yet for the AI boom that's underway, can lift the indexes to new heights. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [This CEO sold his first company to Microsoft. Now he's quietly building a new AI company that the tech giant is already eyeing.]( [image]( Microsoft did their due diligence...and they say this AI company's tech is meeting even their incredibly high bar. [Find out who Microsoft has now vetted.]( Today's Top Research [Where is Earnings Growth Coming From?]( What we saw in the Q1 earnings season was a resilient and steadily improving profitability picture, both in terms of the growth rate and the evolving revisions trend. [Read More »]( [How Do Li Auto (LI) & XPeng (XPEV) Stack Up Post Q1 Earnings?]( China-based EV makers XPeng and Li Auto recently unveiled first-quarter 2024 results. [Read More »]( [4 Top-Ranked Silver Mining Stocks Likely to Shine Further]( The white metal is one of the best-performing major commodities so far this year, having risen 32% and outperforming gold. [Read More »]( [3 Stocks to Watch From the Booming Business Information Industry]( An increase in demand for risk mitigation, cost reduction and productivity improvement solutions is likely to help these stocks. [Read More »]( [Crude Oil Holding Support: 2 Leading Energy Stocks to Buy Now]( Having top Zacks Ranks and discount valuations, these stocks look to benefit from a breakout in the price of oil. [Read More »]( [See ALL Zacks' Long-Term Picks for Only $1]( Confidently navigate today's market with Zacks' private investment recommendations. These picks are based on the system that has more than doubled the market since 1988 (including bear markets) and pointed investors to 32 double- and triple-digit winners last year alone. Starting today, for one month, you can follow these exclusive portfolios in real time from the best stocks under $10 to Warren Buffett-style value plays to high-paying dividend stocks. Total cost $1. No gimmicks. [See Stocks Now »]( [Bull of the Day: AppLovin (APP)]( Earnings momentum continues for this AI play that helps app developers. [Read More »]( [New Zacks Strong Buys for May 23rd]( Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. [Read More »]( More Zacks Resources Mobile App Download our app for convenient on-the-go access to even more—daily and weekly newsletters published by Zacks experts, proprietary research and tools, and Portfolio Tracker on Zacks.com. [Download our Zacks App for Apple iOS]( [Download our Zacks App for Android]( Zacks Members' Success Stories Visit [Success Stories]( to hear how Zacks research, tools and portfolios help our members outperform the market. Get all of our market insights and much more when you connect with us. [Visit Zacks on Facebook]( [Follow Zacks on Twitter]( [See Zacks videos on YouTube]( [Join Zacks on LinkedIn]( [Read Zacks Commentary on StockTwits]( This free resource is being sent by [Zacks.com](. We look for investment resources and inform you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms of Service". [www.zacks.com/terms_of_service]( Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The Zacks #1 Rank Performance covers the period beginning on January 1, 1988 through May 6, 2024. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank #1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit [( for information about the performance numbers displayed above. Zacks Emails If you would prefer to not receive future profit-producing emails from [Zacks.com]( the primary purpose of which is the commercial advertisement or promotion of a commercial product or service, then please [click here]( and confirm your request. If you have trouble with the unsubscribe link, please email support@zacks.com. Zacks Investment Research 10 S. Riverside Plaza, Suite 1600 Chicago, IL 60606