Stock Markets This Week: NVDA - 'Nuff Said
/Monday, November 18
Aecom (ACM)
Why it’s interesting:
As a leader in infrastructure and construction, Aecom's earnings offer a snapshot of how government spending (think infrastructure bills) and private-sector projects are shaping up. With interest rates on the rise, keep an eye on their backlog and margins—key indicators of financial resilience in a tight environment.
Options play/strategy:
Low implied volatility (IV) expected here, so a straightforward call or put based on directional bias could work. If you’re bullish on infrastructure spending, consider long calls out to Q1 2025 to capture potential upside.
Economic events:
10:00 am ET: Home builder confidence index for November. A rise to 46 from 43 indicates growing optimism in the housing sector.
Recap:
Aecom's results might not excite day traders, but combined with positive housing sentiment, its steady growth could signal strength in the broader construction sector.
Tuesday, November 19
Lowe's (LOW)
Why it’s interesting:
The housing market’s slowdown looms large for Lowe's. Are DIYers still splurging on weekend projects, or has tightening consumer spending dampened demand? Expect holiday sales forecasts to set the tone for retail sentiment.
Options play/strategy:
A straddle could be the play here—earnings guidance is shocking, so implied volatility could explode. If you’re bearish on housing-related spending, stick with December puts for downside protection.
Walmart (WMT)
Why it’s interesting:
America’s retail bellwether, Walmart’s results are always a direct look into consumer health. Watch grocery sales trends (inflation impact) and e-commerce growth (still chasing Amazon).
Options play/strategy:
Consider a call spread if you’re bullish on the U.S. consumer. A 10-20% out-of-the-money (OTM) range targeting post-earnings upside could offer solid risk/reward.
Economic events:
8:30 am ET: Housing starts and building permits for October. Slight decreases to 1.34 million and 1.44 million, respectively, may reflect a cooling in the housing market.
Recap:
Lowe’s will tell us about housing. Walmart will tell us about everything else. Expect Walmart to dominate the headlines, especially as housing data suggests a potential slowdown.
Wednesday, November 20
Nvidia (NVDA)
Why it’s interesting:
The AI hype train is about to make another stop. Nvidia's results will test whether it’s justified. Data center and AI chip sales are critical, but any disappointment could hit this stock’s massive valuation hard.
Options play/strategy:
IV will be sky-high. A straddle or strangle could capture big moves. Alternatively, play the post-earnings volatility crush by selling options—but tread carefully.
Snowflake (SNOW)
Why it’s interesting:
Cloud spending is under pressure, and growth stocks like Snowflake are feeling the heat. This report will show if they’re adapting or still burning cash like it's 2021.
Options play/strategy:
Bearish? Short-dated puts if you think the growth story unravels; otherwise, look for bullish call spreads if you believe in their long-term potential.
Target (TGT)
Why it’s interesting:
Target’s turnaround is in focus (inventory issues, anyone?). Watch for holiday sales guidance and progress on margin recovery.
Options play/strategy:
Consider calendar spreads to capitalize on short-term volatility while maintaining a longer-term position for holiday seasonality.
Economic events:
11:00 am ET: Fed Governor Lisa Cook speaks. Monetary policy insights could influence market sentiment.
Recap:
While it’s Nvidia’s world this week, Snowflake and Target provide important insights into tech and retail trends. Fed commentary may add an extra layer of volatility to the mix.
Thursday, November 21
Deere & Company (DE)
Why it’s interesting:
Deere offers a peek into agriculture and construction—a space heavily influenced by macroeconomic trends. Are farmers and contractors still buying, or are rate hikes choking demand?
Options play/strategy:
Long-term bulls might look at leaps; short-term traders could sell OTM puts, baking on steady demand in industrials.
Intuit (INTU)
Why it’s interesting:
A tech-finance hybrid play, Intuit and their QuickBooks and TurboTax businesses give a clear look into small-business health and personal finances.
Options play/strategy:
Diagonal call spreads could capture upside if AI integration becomes the buzzword. Alternatively, consider short-term puts if you expect weak small-business performance.
Economic events:
8:30 am ET: Initial jobless claims for November 16. An increase to 220,000 from 217,000 may indicate slight labor market softening.
8:30 am ET: Philadelphia Fed manufacturing survey. A drop to 6.0 from 10.3 suggests slowing manufacturing activity.
10:00 am ET: Existing home sales for October. An increase to 3.91 million from 3.84 million could signal resilience in the housing market.
10:00 am ET: Leading economic index for October. A decline of 0.4% indicates potential economic headwinds.
Recap:
Thursday is a slower day, but Deere and Intuit are quiet giants. Economic data releases will provide additional context for market movements.
Friday, November 22
No Major Earnings Scheduled
Why it’s interesting:
It’s not—enjoy the breather. The market’s digestion of earlier earnings will dominate the day.
Options play/strategy:
If earlier reports spark wild market swings, use Friday to position for next week’s moves. Look for oversold plays or fading post-earnings reactions.
Economic events:
9:45 am ET: S&P flash U.S. services PMI for November. A reading of 54.1 indicates expansion in the services sector.
9:45 am ET: S&P flash U.S. manufacturing PMI for November. A slight increase to 48.8 from 48.5 suggests ongoing contraction.
10:00 am ET: Consumer sentiment (final) for November. An uptick to 73.5 from 73.0 reflects modest improvement in consumer confidence.
Recap:
Friday’s a clean-up day. Use it to reassess positions and prep for next week!
