Stock markets in the US are likely to persist for the next week as investors turn their attention to cryptocurrencies that have become one of the main indicators of the market's risk appetite.
lost about 30% of its value at one point last week after China announced new regulations that soured the mood for risky assets. In another blow on Friday, China's State Council reiterated its call to restrict mining and trade in Bitcoin. The crypto market had already been shaken up earlier this week by forced sales and possible US tax implications.
It remains unclear how the broader market will react if losses in the crypto market persist, but some analysts warn investors should be cautious in this time of uncertainty. According to BCA Research strategist Anastasios Avgeriou:
"Some of these apparent liquidation pressures have spilled over into the and, given the recent strong positive correlation between Bitcoin and the SPX, they warn that some caution is warranted on equities, at least in the short term."
Aside from crypto risk, investors will also be looking at the release of earnings from some of the top US companies among the last to report in the current cycle. Here are three such stocks we track:
1. NVIDIA Corporation
Semiconductor giant NVIDIA Corporation (NASDAQ 🙂 is scheduled to close on Wednesday, May 26th. the market will report its first quarter earnings. Analysts expect the chip maker to achieve earnings per share of $ 3.28 on revenues of $ 5.39 billion.
Over the past three months, NVIDIA stocks have lost momentum as the chip industry has struggled to overcome supply shortages amid rising demand. The stock closed at $ 599.67 on Friday, after an 88% rise over the past year.
The Santa Clara, California-based chipmaker is the largest manufacturer of graphics chips used in PC gaming. In recent years, NVDA has successfully adapted its technology to the artificial intelligence market, creating another billion dollars.
In this earnings report, however, investors will want to know how the company is doing. ramping up production to meet the chip shortage across the industry. Many chip customers are struggling to meet the rising demand for everything, including laptops, game consoles and other gadgets that use chips.
2. Salesforce.com
Salesforce.com (NYSE :), which sells enterprise software and cloud-based customer relationship management services to corporate customers, reports its quarterly results on Thursday, May 27 after the market closes. The software vendor is expected to report $ 5.89 billion in revenues and $ 0.88 in earnings per share.
The San Francisco-based company disappointed investors with analyst sales forecasts in February. At the time, however, it gave a positive first-quarter forecast, suggesting that customers were spending more on the software after delays fueled by the pandemic.
Salesforce is acquiring Slack Technologies (NYSE :), in a $ 27.7 billion deal announced last year aimed at driving growth through acquisitions. In the past quarter, Salesforce stock is down about 9%, underperforming the general market. It closed at $ 222.58 on Friday.
3. Best Buy
Best Buy (NYSE :), the major electronics and technology chain with stores in the US and Canada, will also increase revenue for the release first quarter, before market opens. According to analyst consensus, the retailer is expected to report $ 1.36 earnings per share and $ 10.32 billion in revenue.
Stocks are up about 15% this year, outperforming the benchmark S&P 500 as Best Buy continues to benefit from Americans who save money on home electronics upgrades during the ongoing work-from-home environment. The stock closed at $ 114.93 on Friday.
To keep that momentum going, Best Buy must demonstrate that it can be seen during the pandemic as the US economy prepares to fully reopen this summer, with COVID infections continuing to decline.
Although demand for its goods remains above normal, "there is a great deal of uncertainty regarding the impact of the COVID-19 pandemic, making it difficult to predict how sustainable these trends will be. will be, ”Chief Financial Officer Matt Bilunas told investors in February.
