Morning Bid: Nvidia earnings take the spotlight
A look at the day ahead in European and global markets from Rae Wee
Earnings results from Nvidia will be the marquee event for markets on Wednesday, with all eyes on how much U.S. technology curbs on China will cost the AI bellwether.
Company watchers expect the chip giant to report a 66.2% surge in first-quarter revenue to $43.28 billion, however uncertainty surrounding its China business looms large even as a pullback in other regulations is set to open up new markets.
As it is, traders in the options markets are bracing for industry-wide volatility after the results, with defensive options contracts on a major semiconductor ETF drawing heavy attention.
Earnings aside, investors will also be watching developments in global bond markets after demand on Wednesday for Japan's 40-year government bond auction was its lowest since November, underscoring the market's diminishing capacity to absorb new debt.
Long-end yields have surged worldwide in recent weeks on a heavy selloff in bonds as concern mounts over fiscal deficits, particularly in developed nations such as the U.S. and Japan.
Worries over tax cuts and that the United States' chaotic tariff policy will stoke inflation and propel government spending have made investors increasingly nervous about holding long-dated sovereign debt.
On Tuesday, Reuters' exclusive report that Japan is considering trimming the issuance of super-long bonds was followed by a drop in both yields and the yen.
Yields on Japanese government bonds were little changed following Wednesday's auction. U.S. Treasury yields edged up slightly after falling the previous day.
Over in New Zealand, the central bank cut its benchmark interest rate by 25 basis points and flagged a slightly deeper easing cycle than it forecast three months ago, underlining risk to economic growth from a sharp shift in U.S. trade policy.
Key developments that could influence markets on Wednesday:
* North America earnings: Nvidia, Bank of Montreal, NationalBank of Canada, DICK'S Sporting Goods, Macy's * U.S. auction of two-year floating rate, five-year notes * German auction of 15-year Federal bonds * German unemployment data for May * France Q1 GDP final reading, producer prices for April
Trying to keep up with the latest tariff news? Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here.
(By Rae Wee; Editing by Christopher Cushing)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Miami Herald
44 minutes ago
- Miami Herald
OpenAI makes shocking move amid fierce competition, Microsoft problems
A blind man once told me, "I wish I knew what a beautiful woman looks like". He started losing his sight from birth and lost it completely while he was still just a child. What do the engineers trying to make artificial intelligence know about intelligence? To me, they look like a bunch of blind men, trying to build a "living" statue of a beautiful person. The worst part is, they don't even know they are blind. Do you remember the scandal when an engineer from Google claimed that the company's AI is sentient? When I saw the headlines, I didn't even open the articles, but my conclusion was that either Google made a terrible mistake in hiring him or it was an elaborate PR stunt. I thought Google was famous for having a high hiring bar, so I was leaning toward a PR stunt-I was wrong. Related: Apple WWDC underwhelms fans in a crucial upgrade What is amazing about that story is that roughly six months later, ChatGPT came out and put Google's AI department into panic mode. They were far behind ChatGPT, which was not even close to being sentient. Engineers from OpenAI, were the ones to start a new era, the era in which investors are presented with a statue that sort of has a human face, and has a speaker inside playing recordings of human speech, expecting that the "blind" men working on it, will soon make it become alive and beautiful. Of course, investors are also ignorant of the fact that engineers are "blind". OpenAI is now faced with many rivals, and the developing situation is starting to look like a bunch of bullies trying to out-bully each other instead of offering a superior product. Meta's recent investment of $15 billion in Scale AI seems to have hit OpenAI quite hard. OpenAI will phase out work with Scale AI, said the company spokesperson for Bloomberg on June 18th. According to the same source, Scale AI accounted for a small fraction of OpenAI's overall data needs. It looks like Meta's latest move angered OpenAI's CEO Sam Altman. In a podcast hosted by his brother, he revealed that Meta Platforms dangled $100 million signing bonuses to lure OpenAI staff, only to fail. "None of our best people have decided to take them up on that," he said, writes Moz Farooque for TheStreet. Related: Popular AI stock inks 5G network deal Unless Altman shows some evidence, this can also be a way to mislead Meta's engineers into believing they aren't compensated fairly. Not that Zuckerberg wouldn't do such a thing, but only the people involved know the truth. As if OpenAI's competition is closing in, buying partner companies and trying to poach its staff by offering ridiculous bonuses aren't enough, the company has even more problems. It is bleeding money, and has issues with a big stakeholder. More AI Stocks: Veteran fund manager raises eyebrows with latest Meta Platforms moveGoogle plans major AI shift after Meta's surprising $14 billion moveAnalysts revamp forecast for Nvidia-backed AI stock OpenAI lost about $5 billion in 2024. There are no estimates on how much the company will lose this year, but according to Bloomberg News, the company does not expect to become cash flow positive until 2029. Latest developments will likely push that date farther into the future. Microsoft has invested about $14 billion in OpenAI; however, the relationship has turned sour since then. OpenAI has considered accusing Microsoft of anticompetitive behavior in their deal, reported the Wall Street Journal on June 16th. On June 19th The Financial Times reported that Microsoft is prepared to abandon its negotiations with OpenAI if the two sides cannot agree on critical issues. Meanwhile, OpenAI has started shockingly discounting enterprise subscriptions to ChatGPT. This had angered salespeople at Microsoft, which sells competing apps at higher prices, reported The Information. Related: Amazon's latest big bet may flop "In my experience, products are only discounted when they are not selling because customers do not perceive value at the higher price. If someone loses copious amounts of money at the higher price, how will the economics work at a lower price?" wrote veteran hedge fund manager Doug Kass in his diary on TheStreet Pro." OpenAI's price cuts could kick off a price war, with a race to the bottom even as OpenAI, Microsoft, Meta, and Google continue plowing tens of billions into developing it. "My suspicion, although those guys might be good (in theory) at technology, they are not good at business. I think they will find much less in the way of elasticity than they hope, because the problem is the quality of the output more than it is the price," said Kass. What will happen to OpenAI's cash flow positive plan after 2029? I doubt it is reachable with the now slashed prices. Will the company even live to see 2029? I think that is a better question. Related: Elon Musk's DOGE made huge mistakes with veterans' programs The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
44 minutes ago
- Miami Herald
Toyota makes a tariff move customers are going to hate
While President Donald Trump's social media posts make it seem as though his tariff moves are executed at his whim, it is clear that at least some industries have a seat at the negotiating table. The auto industry's top executiveshave said they are in close contact with the White House and have even praised the president and his White House team for hearing their concerns. However, it is also clear that Trump's interest in protecting the auto industry's bottom line is minimal. Related: General Motors makes $4 billion tariff move Ford, Stellantis, and General Motors - America's Big 3 automakers - have all said that Trump's tariffs will cost them billions, and they've pulled their guidance due to a lack of visibility. Trump has made it clear to every industry that he doesn't want prices to increase, even going as far as telling companies like Walmart to just "EAT THE TARIFFS." So, every time the auto industry has been observed raising prices in recent months, it has denied that it has anything to do with tariffs. Others, like Mazda, have indeed eaten the tariffs, with the Japanese automaker sending a letter to its U.S. dealers informing them that it would not raise its sticker prices or tack on import fees for any vehicles already on dealership lots or that will come into the country before May 1. Toyota is the latest Japanese automaker to make a pricing move, but it isn't blaming the move on tariffs. Toyota sold over 2.3 million vehicles in the U.S. last year, a 3.7% year-over-year increase. Between April 2024 and March 2025, the company built 1.96 million units in the U.S., according to Statista. So, despite a U.S. production capacity that can handle nearly 2 million vehicles a year, Toyota still ships in nearly half a million vehicles from overseas to sell in the U.S. On June 21, Toyota said that prices for several Toyota and Lexus brand vehicles will rise by an average of $270 and $208, respectively, starting in July, according to an email seen by Bloomberg. While the price increase could be seen as a response to the 25% duties Trump has placed on auto imports, Toyota insists that the move is just part of its regular price review process. Related: Jeep parent Stellantis ponders drastic action on struggling brand In April, fellow Japanese automaker Mitsubishi said it would hold its vehicles in port for the foreseeable future instead of offloading them and being forced to pay duties. "We have sufficient stock on the ground at dealers for the moment to not impact customer choice," the company said at the time. While it was unclear how much cargo was in the ports, Mitsubishi's 330 U.S. dealers sold 109,843 vehicles in the U.S. in 2024, a 25.8% year-over-year increase and the brand's best performance since 2019. Earlier this month, the company announced that it is raising prices on three models, also saying that the move was just a regular adjustment and not a reaction to tariffs. Japanese car companies aren't the only ones afraid to pin their price increases on tariffs. In May, Ford sent a notice to dealers saying it planned to raise prices on the Mustang Mach-E electric SUV, Maverick pickup truck, and Bronco Sport SUV by as much as $2,000 on some models. Those vehicles are made in Mexico. More Automotive news Detroit Big 3 benefit from auto tariffs now, but time is running outPopular Ford newcomer overtakes Jeep in a key areaToyota makes surprising move to beat Tesla in key market A Ford spokesperson confirmed that the price increases will be seen on vehicles built after May 2. Those vehicles will start arriving on dealer lots in late June. The company emphasized that its employee pricing promotion remains for all of its vehicles through the July 4 weekend. Just like Mazda and Toyota before it, the company says the increase was due to its usual midyear pricing actions, but it was also "combined with some tariffs we are facing. We have not passed on the full cost of tariffs to our customers." Related: Car buyers, dealers are both shocked by latest price trends The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Business Insider
an hour ago
- Business Insider
Women are getting wealthier — and they don't invest the same way as men
Women are becoming richer, and they're changing the face of wealth. According to a report by McKinsey published last month, women control about a third of all retail financial assets in the US and the European Union. By 2030, that proportion is expected to rise to between 40% to 45%, wrote Cristina Catania, global co-convener and European lead for the risk and resilience practice, and Jill Zucker, senior partner and co-leader of McKinsey's global growth transformation service line. The report is based on a survey of about 13,000 American and European investors, nearly half of whom were female financial decision makers. It found that between 2018 and 2023, global wealth rose by 43%, but jumped by 51% for women. Women's expanding control of assets is being driven by a combination of factors, including a continuing decline in marriage rates, the ongoing boost in women's average earnings, demographic trends like longer life expectancies, and a broad shift in attitudes about women managing their own finances. Risk doesn't equal reward As women become wealthier through investing, it's becoming clearer that they don't approach it the same way as men. "Women are much more risk-aware," Anna-Sophie Hartvigsen, cofounder of financial education and investment platform Female Invest, told Business Insider. "I would like to call it much more realistic in their own ability to invest." She said women are less likely than men to invest emotionally. "On average, men trade a lot more often than women because they believe they can beat the market or they read something in the news, and they get pumped up or afraid, and then they invest based on that," Hartvigsen said. Female investors, in her view, tend to be more calm, more realistic, and better at assessing risk. However, Katie Geery, an advisor at Rise Private Wealth Management, says being more cautious can also hold women back by leading them to miss out on opportunities to build wealth. "It is important to work with a trusted financial advisor who understands your risk tolerance and can walk you through making well-educated investment decisions based on your long-term goals," she told BI. Returns aren't everything The aims of investing also sometimes differ between men and women. "Women prefer to invest toward achieving specific goals rather than chasing the highest returns," said Avanti Shetye, financial planner at Wealthwyzr. Geery said female investors tend to be more focused on philanthropy and gifting. They often consider their values when buying stock and want their purchases to help make a better impact on the world. "Women often seek financial advisors who are empathetic and take the time to get to know them on a more personal level to gain a deeper understanding of their goals and values," she said. On Female Invest, Hartvigsen said the principles its members care about the most include climate, especially a firm's carbon footprint, and diversity in leadership, in terms of a board having a good gender balance. Start investing early For Shetye, it's important to start investing early. "Women tend to be primary caregivers for children or aging parents and often take unpaid time off," she said. "Not only that, women statistically live longer than men, which implies that women would need to invest as much as they can as early as possible so that their portfolios last them through retirement." Hartvigsen said long-term financial planning is vital: "When you do that, it doesn't matter what happens today." Both agree that this plan should be grounded in expert advice. "Working with a financial planner whose planning process is rooted in financial education can help provide comfort and security to stay consistent even in the roughest of markets," Shetye said. But she also believes that practice is more important than perfection. "You are never going to know everything there is to know about investing," Shetye said. "The key is consistency, and time will do the heavy lifting." Hartvigsen advises her clients to invest monthly on the same day and to diversify their investments. "If you do that, historically, it has been near impossible not to make money in the long run."
