Xinhua Finance and Economics, New York, November 20th (Reporter Liu Yanan) Due to investors continuing to wait and see before Nvidia announced its performance and the suppression of market sentiment by Target's performance, the three major stock indexes in the New York stock market had mixed ups and downs at the opening on the 20th, followed by a decline, weak consolidation during the day, and a rise at the end of the day. At the end of the day, the three major stock indexes had mixed ups and downs.
As of the close of the day, the Dow Jones Industrial Average rose 139.53 points from the previous trading day, closing at 43408.47 points, an increase of 0.32%; The S&P 500 stock index rose 0.13 points to close at 5917.11, with a near zero increase; The Nasdaq Composite Index fell 21.33 points to close at 18966.14, a decrease of 0.11%.
In terms of sectors, the 11 major sectors of the S&P 500 index rose six times and fell five times. The medical sector and energy sector led the gains with an increase of 1.18% and 1.00% respectively, while the non essential consumer goods sector and financial sector led the decline with a decrease of 0.57% and 0.28% respectively.
Ryan Detrick, Chief Market Strategist of Carson Group, stated that the tension over Nvidia's performance and the rising political tensions are causing concern among investors. However, this year's stock market performance remains a historic year, and there are no significant signs of a slowdown in the US economy.
Chris Senyek, Chief Investment Strategist at Wolf Research in the United States, said that like most investors, he will closely monitor Nvidia's performance released on the same day to find trends in AI spending. Any negative news or disappointing spending trend will be one of the key risks that could delay or reverse the stock market's rise by the end of this year.
Jerry Chen, a senior analyst at foreign exchange broker Jiasheng Group, said that after the election effect, the overall trend of the US stock market has been relatively calm recently but still maintains a positive momentum. If Nvidia's post market performance and guidance after the 20th are optimistic enough, it may bring sustained upward momentum to the index.
Deutsche Bank macro strategist Henry Allen warns that the valuation level of the US stock market is too high, and there is limited room for further stock market gains. In history, there have often been significant declines after high returns. A turning point may occur soon.
Allen stated that the S&P 500 index's cycle adjusted price to earnings ratio (CAPE) has only been higher than current levels twice in the past century, before the global financial crisis in the late 1990s and 2008.
In terms of individual stocks, the performance report released by American retail giant Target this morning showed that due to the failure of large-scale product discounts to effectively attract customers, its operating income and profit were lower than expected in the quarter ending November 2. The company also lowered its profit forecast for this fiscal year, and Target's stock price fell sharply by about 20% on the same day. Comcast Cable Communications announced on the same day that it plans to divest its MSNBC and CNBC channels within a year, and its stock price rose 1.58% on the same day.
Nvidia's post market results showed that the company achieved a revenue of $35.1 billion in the quarter ending October 27th, with a month on month and year-on-year increase of 17% and 94%, respectively; Diluted earnings per share for the quarter were $0.78, with a month on month and year-on-year increase of 16% and 111%, respectively. Nvidia's stock price fell by 0.76% on the 20th and continued to decline by over 1% in after hours trading.