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U.S. stock index futures pointed to a lower open on Wednesday, as Wall Street awaits Nvidia's release (NASDAQ:NVDA) quarterly results after the closing bell. Traders will also receive the minutes of the latest meeting of the Federal Reserve's monetary policy committee. Here Some actions to keep in mind on Wednesday:
- Nvidia (NVDA) stock will get most of the attention. Wall Street expects the chip giant to earn $4.64 per share on revenue of $20.55 billion in the fourth quarter of 2024. To say expectations are sky-high ahead of the earnings report might even be an understatement, as investors eagerly await guidance and feedback from the company. Nvidia's (NVDA) spectacular numbers over the past year have seen its stock triple in value, thanks in large part to its artificial intelligence offerings. That rally has also been instrumental in fueling Wall Street's overall bull run. “The stock has reported an earnings triple play (beat EPS estimates, beat sales estimates, raised guidance) in four consecutive Q4 earnings reports and 7 of the last 8 dating back to 2016. Yes, expectations will be high,” Bespoke Investment Group said on X (formerly Twitter) on Tuesday.
- Lucid Group (LCID) stock will also be in the spotlight, with the luxury electric vehicle (EV) maker set to deliver fourth-quarter 2023 results in extended trading. Wall Street expects LCID to post a loss of 32 cents per share on revenue of $181.76 million. Lucid (LCID) stock has been punished by investors amid falling demand in the electric vehicle sector and the company's lack of profitability, with the company's shares falling 38.4% in 2023 and another 12.6% so far this year. Last week, Lucid (LCID) lowered prices on its key electric vehicle models for the third time in seven months as it aims to boost revenue amid increased margin pressures. Last month, the company reported fourth-quarter deliveries of 1,734 vehicles, beating the consensus estimate of 1,696.
- US-listed Rio Tinto (RIO) shares pared some of their losses and were last down 0.7% in premarket trading, after the world's largest iron ore producer reported full-year 2023 results. The company's underlying earnings fell 12% year-on-year to $11.8 billion from $13.4 billion, largely due to lower prices for its raw materials as supply improved. On the other hand, Rio's (RIO) dividend payout improved in 2023, with the company declaring a final dividend of 258 cents per share, up from the 2022 dividend of 225 cents per share. Rio's (RIO) board also said it expects long-term total cash returns to shareholders to be in a range of 40% to 60% of underlying earnings.
- Walgreens Boots Alliance (WBA) Stock fell about 2.5% before the opening bell. The drop came after S&P Dow Jones Indices said on Tuesday that the pharmacy chain's shares would be removed from the Dow Jones Industrial Average (DJI). Replacing Walgreens (WBA) on the venerable blue-chip indicator will be tech and retail giant Amazon (AMZN), whose stock increased almost 1%. “Reflecting the changing nature of the U.S. economy, this change will increase retail consumer exposure as well as other areas of business to the (Dow Jones),” S&P said in a statement, adding that the change in the index was driven by the existing component of Walmart (WMT). ) decision to split its shares, which will reduce the weight of the retailer's index.
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