In Tuesday’s trading session, Nvidia (NVDA) rebounded decisively, rising by 6.76%. The stock wants to erase a sell-off that sent the stock below $118. Shares last traded below that level on June 4. YTD, shares are up 161.76%.
Readers should ignore the eye-catching $500 billion valuation. The stock is consistently the daily most actively traded stock, so only speculative day traders would worry that they bought shares at a peak.
FedEx (FDX) will open up by nearly 15% this morning. The company posted fourth-quarter results that exceeded estimates. Revenue increased by 0.9% Y/Y to $22.1 billion. EPS of $5.41 is ahead of estimates by four cents. It earned $4.94 last year.
FedEx said it would buy $2.5 billion in common stock. In the current quarter (Q1), it will buy $1.0 billion. Just as Apple (AAPL) posted weak results but announced a mega-stock buyback, FedEx is doing the same. This sets a floor on FDX stock.
In morning trade, watch General Mills (GIS), a food supplier, and Paychex (PAYX). Markets will react to their earnings report this morning. In the afternoon, Micron Technology (MU) will post results. AI stocks like Nvidia and Microsoft (MSFT) need Micron, a memory chip supplier, to post strong results and raise its outlook.