分析师指出，下图显示，Bank of America Merrill Lynch pointed out that the performance of this chip manufacturer may have a greater impact on US stocks than non-farm payrolls reports, CPI, or Fed meetings.
Bank of America Global Research stated that chip makers $NVIDIA (NVDA.US)$ released their quarterly earnings report after market hours on November 20th, Eastern Time, which has once again become the focus of attention this week, and their performance may determine the recent direction of the usa stock market.
Led by stock derivatives analyst Gonzalo Asis, the Bank of America analyst team indicated in a client report last Sunday that, "The stock market has been focused on election impact, interest rate fluctuations, and the Federal Reserve, but the options market tells us that Nvidia's earnings are still a very important thing for the entire market."
Analysts point out that the s&p 500 index in this artificial intelligence darling's financial report is consistent with the implied volatility of nvidia during this period.Implied volatility， consistent with the implied volatility of nvidia itself during this period.
Asis and his team also noted that option market pricing indicates Nvidia's performance will bring broader market risks, rather than other events that could impact the market, including the next non-farm payrolls report, Consumer Price Index (CPI) report, or even the December policy meeting of the Federal Reserve.
It is certain that Nvidia is the "most dominant stock" in the US market, driving approximately 20% return of the S&P 500 index over the past year. Bank of America analysts wrote that they expect the company to further drive nearly 25% EPS growth of this large cap index in the third quarter.
This is why Asis and his team warned that if Nvidia's earnings disappoint on Wednesday, the "individual stock fragility" risk associated with Nvidia will continue to rise. They stated that if the tech-heavy Nasdaq 100 index falls by approximately 3% this week, put options spreads may offer "attractive returns".
Nvidia will be the last company among the so-called 'Big Seven' technology stocks to report quarterly earnings. Analysts surveyed by FactSet unanimously believe that the chip maker's quarterly sales will be $33.1 billion, up 10% from the previous quarter and 83% from a year ago.
Investors are also looking forward to the performance of some large retailers to gauge the strength of the consumer and the economic situation before the holiday season.
Editor/Somer
