New Closing Highs For Nasdaq, S&P 500; NVDA Reports Wednesday
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Major market indices were almost all in the green as of Tuesday’s closing bell. We were mixed at the start of the trading day, as well — and finished Monday mixed, too — so consider the relative lack of fresh, impactful market-based news having something to do with this. The blue-chip Dow gained +0.17% (still 130 points or so from its recently reached all-time closing high), the S&P 500 and the Nasdaq both struck new all-time closing highs at 5321 and 16.832, respectively, and the small-cap Russell 2000 lagged the field slightly, -0.20%.
Bitcoin pulled back after a brief rendezvous above 71K, reaching 4pm ET -2.45% — still near all-time highs for the leading crypto unit. Bond yields were positively static on the 2-year today: ahead of the open it was +4.83%; as of the close it was also +4.83%. The 10-year, on the other hand, dropped notably from +4.42% early this morning to +4.14% this afternoon. Ideally, we’d like to see both of these head lower; an almost 30 basis-point (bps) dip on the 10-year is nice to see, however.
After Tuesday’s close, luxury homebuilder Toll Brothers (TOL - Free Report) reported earnings. Its fiscal Q2 bottom line reported earnings of $4.55 per share — easily surpassing the $4.13 in the Zacks consensus and well ahead of the $2.85 reported in the year-ago quarter. The company reported home sales totaling $2.65 billion for the quarter, a solid beat over $2.52 billion expected. A narrow upward adjustment on current-quarter guidance and a raise in full-year delivery guidance has helped the stock up another +1% in late trading. Shares are up +29% year to date.
Urban Outfitters (URBN - Free Report) also beat expectations on both top and bottom lines. Its Q1 earnings per share of 69 cents amounted to a 20-cent beat over the Zacks consensus, with revenues of $1.2 billion above the $1.17 billion anticipated (which itself was a +5% gain year over year). Same-store sales at both Free People and Anthropology were higher than expected, while flagship stores underperformed a bit. Shares are up more than +7% in late trading on this news, adding to the stock’s +15.6% gains year to date.
Ahead of Wednesday’s open, more companies report earnings. These include Zacks Rank #3 (Hold), Style-Score-A retailers Target (TGT - Free Report), and The TJX Companies (TJX - Free Report). Both stocks were tepid during today’s trading, and lag the S&P in growth year to date. Obviously, the Big Kahuna on Wednesday comes after the bell, when graphics chip giant NVIDIA (NVDA - Free Report) reports Q1 earnings. Big things are expected. NVIDIA has an excellent track record of beating even strong estimates; we’ll see if CEO Jensen Huang’s company can keep it going.
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