Before the bell: tensions and anticipation

Awaiting Nvidia’s earnings, new U.S. approval for UCB, and geopolitical tensions raise concerns.

The average European stock dropped 0.8% yesterday, with the Bel20 losing 0.9%. Ongoing tensions between Russia and Ukraine continue to worry European investors. In contrast, U.S. markets were more upbeat. The S&P 500 gained 0.4%, while the tech-heavy Nasdaq climbed 1%. One of the day’s big winners was Nvidia, whose shares surged by an impressive 4.9%, despite the company not releasing its earnings until today. Another AI company, Super Micro Computer, saw its stock soar by over 30% after appointing BDO as its new auditor and pledging to retain its Nasdaq listing. Netflix also rose 2.9%, reporting that 108 million viewers worldwide tuned in to watch the Jake Paul vs. Mike Tyson boxing match, which it claimed was the most-streamed sporting event ever.

Asian markets are relatively calm this morning. Tokyo’s Topix is down 0.4%, and Hong Kong’s Hang Seng Index is 0.2% lower. Meanwhile, UCB announced that it has received FDA approval for the use of Bimzelx in treating HS, a chronic inflammatory skin condition. In the U.S., Target will release its earnings today, while the much-anticipated Nvidia earnings will be published after the market closes tonight.

Price cuts in the spotlight

U.S. retail giant Walmart is slashing prices and raising its guidance. The company reported third-quarter revenue of 169.6 billion dollars, a 5.5% increase year-on-year and 1.2% above analyst expectations. Online sales in the U.S. performed particularly well, growing by 22%. Investors cheered, sending Walmart shares up 3%. Since the start of the year, Walmart’s stock has already gained over 60%. Inflation appears to be driving the supermarket chain’s success, as higher prices elsewhere push consumers toward the low-cost retailer.

Another stock leaving the exchange?

Despite a quiet morning in Asia, shareholders of Japan’s Seven & I Holdings had reason to celebrate. News broke that the Ito family plans to raise over 8 trillion yen (49 billion euros) to take the company private, sending shares up 6.5% today. The company was formed in 2005 from the merger of Japanese supermarket Ito-Yokado, convenience store chain Seven-Eleven, and Denny’s Diner Japan. The Ito family’s privatization efforts come amid pressure from Canada’s Alimentation Couche-Tard, which made a 44 billion dollar bid for the company earlier this year.

Did you know…

that despite controversies and measures against China, ultrafast fashion company Shein is targeting a London IPO in the first half of 2025? The company is aiming for a valuation of 60 billion euros.

This article was translated from Dutch and was originally published on Spaarvarkens.be.