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US STOCKS-Wall St indexes mixed; Nvidia earnings, Fed policy in focus
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US STOCKS-Wall St indexes mixed; Nvidia earnings, Fed policy in focus
Nov 19, 2024 9:01 PM

(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

*

Nvidia ( NVDA ) falls after report Blackwell chips overheating

*

Tesla jumps after report Trump team's could ease rules

*

CVS Health ( CVS ) gains on new board appointments in Glenview

deal

*

Indexes: Dow down 0.08%, S&P 500 up 0.10%, Nasdaq up 0.24%

(Updated at 09:43 a.m. ET/1443 GMT)

By Lisa Pauline Mattackal and Purvi Agarwal

Nov 18 (Reuters) -

Wall Street's main indexes were mixed on Monday, as

investors looked ahead to earnings from AI-chip leader Nvidia ( NVDA )

following a rout the previous week on apprehensions about Donald

Trump's cabinet appointments and the central bank's policy path.

Results from Nvidia ( NVDA ), which reports third-quarter

earnings on Wednesday, will be crucial as investors assess if

the euphoria around AI, responsible for much of markets'

tech-driven rally this year, can be sustained. Its stock has

nearly tripled in value this year.

Nvidia's ( NVDA ) shares

fell 2.8%, after a report said its new AI chips were

overheating in servers, weighing on the Information Technology

sector, which lost 0.3%.

"I'm optimistic that they're going to continue to beat,

but... optimism has been so high on that particular name

(Nvidia ( NVDA )) that you can't help but see some potential for a bit of

a selloff," said Robert Pavlik, senior portfolio manager at

Dakota Wealth.

Meanwhile, Consumer Discretionary stocks

gained 1.4% after Tesla jumped 7.2% following a report

that members of Trump's transition team were seeking to ease

U.S. rules for self-driving cars. The EV-maker's gains also

boosted the tech-heavy Nasdaq.

Shares of Uber ( UBER ) and Lyft ( LYFT ) fell more than

4% each.

Most megacaps edged higher, with Alphabet up

0.7% and Apple ( AAPL ) up 0.6%.

However, healthcare stocks such as UnitedHealth ( UNH )

and Amgen ( AMGN ) weighed on the Dow.

The Dow Jones Industrial Average fell 35.21

points, or 0.08%, to 43,409.78, the S&P 500 rose 5.59

points, or 0.10%, to 5,876.21 and the Nasdaq Composite

gained 44.44 points, or 0.24%, to 18,724.56.

Rising expectations that the Federal Reserve will slow

its policy easing pace and uncertainty over the impact of U.S.

President-elect Donald Trump's cabinet appointments led to the

S&P 500 and the Nasdaq logging their worst weekly

losses in more than two months last week.

"The market's post-election rally tapped the brakes last

week," said Chris Larkin, managing director of trading and

investing at E*TRADE from Morgan Stanley, adding Nvidia's ( NVDA )

earnings would likely dictate the market's short-term direction.

With the key holiday shopping season set to begin,

results from major retailers including Walmart ( WMT ), Lowe's

Companies and Target ( TGT ) will be closely watched

this week to gauge the strength of the U.S. consumer.

Stock indexes have shed some of the sharp gains that

followed Trump's decisive victory, but Wall Street remains

fairly well placed as 2024 winds down. The benchmark index has

gained nearly 3% in November and about 23% year-to-date.

A host of Federal Reserve officials are slated to speak

this week and their comments will be followed closely after

Chair Jerome Powell said the Fed was in no hurry to cut rates.

Traders are pricing in a 41.6% chance the Federal Reserve

will keep interest rates on hold in December, according to the

CME FedWatch.

CVS Health's ( CVS ) shares gained 2.7% after the health

insurer said it would add four new members to its board in an

agreement with Glenview Capital Management.

Advancing issues outnumbered decliners by a 1.62-to-1

ratio on the NYSE, and by a 1.31-to-1 ratio on the Nasdaq.

The S&P 500 posted 12 new 52-week highs and eight new

lows, while the Nasdaq Composite recorded 20 new highs and 105

new lows.

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