Investing.com — Wall Street is seen trading slightly higher as investors await the release of results from chipmaker Nvidia, which could drive sentiment for the rest of the week. Comcast will also be in focus following a spinoff report, while UK inflation added to signs that the global disinflationary phase may have stalled. 

1. Nvidia expected to deliver 

Nvidia (NASDAQ:NVDA), the world’s most valuable company with a market cap of $3.6 trillion, is set to release its latest quarterly results after the close Wednesday.

The chipmaker’s results could well become a gauge for investors’ appetite for tech stocks and sentiment for equities broadly, given its chips are widely seen as the gold standard in the AI-space, and demand for all things to do with artificial intelligence has driven much of this year’s stock market gains.

Trade in options points to a nearly $300-billion swing in market value, which will make for a potentially volatile trading session ahead.

Expectations are running high following a 5% jump in the company’s stock price on Tuesday, with analysts expecting Nvidia to increase third-quarter revenue by more than 80%, to $32.9 billion.

The market is likely to get another “drop the mic performance” from the AI powerhouse, according to Wedbush analysts, with Nvidia at the center of what they call the “AI Revolution.”

Wedbush added “another $2 billion beat and $2 billion quarter guide higher is the recipe for success that the Street wants to see.”

2. Futures edge higher; Target to announce results

US stock futures edged higher Wednesday, as investors cautiously awaited the release of results from tech giant Nvidia. 

By 03:45 ET (08:45 GMT), the Dow futures contract was up 125 points, or 0.3%, S&P 500 futures climbed 12 points, or 0.2%, and Nasdaq 100 futures rose by 40 points, or 0.2%.

Wall Street closed in a mixed fashion Tuesday as investors digested the troubled situation in eastern Europe as well as more quarterly corporate earnings.

Nvidia releases its latest results after the close, and ahead of this retailers Target (NYSE:TGT) and TJX (NYSE:TJX) are due to provide their quarterly numbers.

Investors will also listen for commentary from Federal Reserve Governors Lisa Cook and Michelle Bowman, as well as Boston Fed President Susan Collins.

3. Comcast to spin off cable networks – report

Comcast (NASDAQ:CMCSA) will be in the spotlight Wednesday following a report that the media conglomerate is set to announce that it will proceed with a plan to spin off its NBCUniversal cable television networks.

The Wall Street Journal reported that the company has decided to spin off its network television unit, which includes channels such as MSNBC and CNBC, after last month raising the possibility as it navigates a broader shift away from traditional television and into streaming. 

The assets generated revenue of about $7 billion in the year to September 30, and are still profitable, although the advent of streaming has spurred a shift in consumers away from cable.

Comcast will keep the NBC broadcast television network, its film and television studios and its theme parks, as well as its Peacock streaming service.

The spin-off is expected to take a year to complete, the WSJ report said, and will be led by Mark Lazarus, who is currently the chairman of NBCUniversal’s media group. 

4. UK inflation surprises to upside

British inflation jumped by more than expected in October, moving back above the Bank of England’s 2% target and adding to recent signs that the global disinflationary pulse may have stalled.

Consumer prices rose by an annual 2.3% last month, a jump from September’s 1.7% increase in September, which was the first time the inflation rate had fallen below the BoE’s target since 2021, and above the 2.2% rise expected.

Inflation rose 0.6% on a monthly basis in October, the biggest month-to-month rise in the annual CPI rate since October 2022.

This rise comes before the impact of the first budget of Britain’s new government, which included higher taxes on companies, is felt. 

The Bank of England said the budget was likely to add to inflation next year, and Governor Andrew Bailey on Tuesday stressed the central bank’s message that borrowing costs are likely to come down only gradually.

5. Crude gains on heightened Russia/Ukraine tensions

Crude prices edged higher Wednesday, helped by concerns about escalating hostilities in the Ukraine war potentially disrupting oil supply from Russia.

By 03:45 ET, the US crude futures (WTI) climbed 0.5% to $69.58 a barrel, while the Brent contract rose 0.4% to $73.61 a barrel.

The US embassy in Kyiv was closed earlier Wednesday after a warning of a possible strike, and this comes a day after Ukraine used US missiles to strike Russian territory, much to Russian President Vladimir Putin’s chagrin.

Putin lowered the threshold for a nuclear strike as a response on Tuesday, and this threatens to drag the West further into the Ukraine war, potentially disrupting Russia’s oil infrastructure.

However, gains have been contained by data from the American Petroleum Institute showing US crude oil stocks rose by 4.75 million barrels in the week ended Nov. 15, far more than the small 100,000 barrel increase expected.

If this figure is confirmed by the official data, due later in the session, it would point to a reduction in demand in the world’s largest energy market as the driving season comes to a close. 

BERLIN (Reuters) – China has overtaken Germany in the use of robots in industry, an annual report published by the International Federation of Robotics (IFR) showed on Wednesday, underscoring the challenges facing Europe’s biggest economy from Beijing.

In terms of robot density, an important indicator for international comparisons of the automation of the manufacturing industry, South Korea is the world leader with 1,012 robots per 10,000 employees, up 5% since 2018, said the IFR.

Singapore comes next, followed by China with 470 robots per 10,000 workers – more than double the density it had in 2019.

That compares with 429 per 10,000 employees in Germany, which has had an annual growth rate of 5% since 2018, said IFR.

“China has invested heavily in automation technology and ranks third in robot density in 2023 after South Korea and Singapore, ahead of Germany and Japan,” said IFR president Takayuki Ito.

Germany has in the past relied heavily on its industrial base and exports for growth but is facing ever tougher competition from countries like China. It expects economic contraction for the second year running in 2024, making it the worst performer among the Group of Seven rich democracies.

By Yoshifumi Takemoto

TOKYO (Reuters) – Japan’s ruling coalition on Wednesday agreed with a key opposition party on the draft of an economic stimulus package, clearing a major hurdle for the $87 billion package designed to help cushion the blow to households from rising prices.

The agreement among the Liberal Democratic Party (LDP), its ruling coalition partner Komeito and the Democratic Party for the People (DPP) meant the package is now likely to be approved by the cabinet of Japanese Prime Minister Shigeru Ishiba on Friday.

The coalition camp now needs DDP’s cooperation after the Oct. 27 election left the LDP and Komeito leading a fragile minority.

The LDP and Komeito agreed to reflect some of DPP’s key policy initiatives, including raising the basic tax-free income allowance and lowering the gasoline tax, as “top priorities” in the package, a DPP executive said at a news conference.

The stimulus package will also provide 30,000 yen ($193) to low-income households that are exempt from residential taxes and 20,000 yen per child for households with families, sources familiar with the matter have told Reuters.

The parliament will start discussions next month on a supplementary budget to fund the package, which is reportedly worth about 13.5 trillion yen ($87 billion).

($1 = 155.4800 yen)

JAKARTA (Reuters) – Indonesia’s central bank held interest rates unchanged on Wednesday, as expected, saying policy was focused on maintaining stability in the rupiah currency while making sure inflation stays within its target range.

Bank Indonesia (BI) kept the benchmark rate steady at 6.00%, as predicted by 25 of 34 analysts polled by Reuters.

The central bank also left the overnight deposit facility and lending facility rates at 5.25% and 6.75%, respectively.

By Joey Roulette

(Reuters) -Elon Musk’s SpaceX launched its giant Starship rocket to space from Texas on Tuesday, advancing the ship’s spaceflight abilities but botching an attempt to bring its booster back to land as U.S. President-elect Donald Trump watched from the company’s rocket facilities.

The roughly 400-foot-tall (122-meter-tall) rocket system, designed to land astronauts on the moon and ferry crews to Mars, lifted off at 4 p.m. CT (2200 GMT) from SpaceX’s sprawling rocket development site in Boca Chica, Texas.

The rocket’s 233-foot-tall (71-metre-tall) first stage booster, called Super Heavy, detached from its second stage, Starship, at roughly 40 miles (62 km) in altitude, sending the craft into space.

Super Heavy unexpectedly splashed down in the Gulf of Mexico instead of returning to land, where it was expected to fall into large mechanical arms attached to the tower it launched from. The last-minute diversion to water indicated something went wrong.

A live stream separate from SpaceX’s and hosted by space blogger Everyday Astronaut showed the Super Heavy booster exploding into a massive fireball on the Gulf horizon after splashing down.

Starship last month demonstrated the novel catch-landing method for the first time, achieving a key milestone in its reusable design. Tuesday’s catch-landing was supposed to be “faster/harder,” Musk had written on social media before the launch.

After the Oct. 14 Starship test, Trump was intrigued, fixating on the booster’s novel catch-landing technique – “Did you see the way that sucker landed today?,” he said at a rally that day.

The rest of the mission appeared successful.

In space, Starship traveled around Earth for a daytime splashdown in the Indian Ocean roughly an hour later. It reignited one of its onboard engines in space for the first time, an early test of its maneuverability in space that SpaceX had tried but failed to do in past flights.

NASA chief Bill Nelson, who is expected to leave his role once Trump takes office in January, congratulated SpaceX in a post on X and said Starship’s in-space engine reignition marked “major progress towards orbital flight.”

Trump’s attendance signals a deepening alliance with Musk, who stands to benefit from Trump’s election victory. The billionaire entrepreneur and CEO of SpaceX and Tesla (NASDAQ:TSLA) is expected to wield extraordinary influence to help his companies and secure favorable government treatment.

The world’s wealthiest person, Musk was a prominent supporter of Trump’s presidential election campaign, appearing with him at rallies and backing him with at least $119 million in political support.

“I’m heading to the Great State of Texas to watch the launch of the largest object ever to be elevated, not only to Space, but simply by lifting off the ground,” Trump wrote on social media, wishing Musk luck on the launch.

Trump on Nov. 13 appointed Musk as co-leader of a new government efficiency project that the SpaceX founder and Tesla CEO has said will rid the federal government of wasteful spending and regulations he has called burdensome. 

The U.S. Federal Aviation Administration’s regulation of commercial rocket launches has been a source of frustration for Musk, who has complained that the agency impedes his company’s progress in getting to Mars.

But the FAA’s license approval of Tuesday’s Starship launch a little over a month after the rocket’s previous flight was its quickest regulatory turnaround yet for SpaceX, as the agency develops new launch-approval processes meant to keep pace with the U.S. space industry’s growth.

Musk on Tuesday listed four core objectives for the test flight: restarting Starship’s space-tailored engine during flight, making a more visible ocean landing during the daytime – past attempts have been at night – putting Starship through more intense heat during reentry, and making the booster landing faster.

“There are thousands of small design changes also being tested,” Musk said.

SpaceX is eyeing swift advances in Starship development during a second Trump administration. The administration’s space agenda is expected to give NASA’s Artemis program, which is due to return astronauts to the lunar surface, a greater focus on the more ambitious goal of landing people on Mars, Musk’s premier space aspiration.

“We just passed 400 launches on Falcon, and I would not be surprised if we fly 400 Starship launches in the next four years,” SpaceX President and COO Gwynne Shotwell said at the Baron Investment Conference in New York last week, referring to the company’s workhorse rocket.

(Reuters) – U.S. President-elect Donald Trump is scheduled to interview former Federal Reserve Governor Kevin Warsh and Apollo Global Management (NYSE:APO) CEO Marc Rowan on Wednesday for the post of Treasury Secretary, Bloomberg News reported on Tuesday, citing people familiar with the matter.

The Financial Times separately reported on Tuesday that Rowan has emerged as a top contender for the Treasury job, citing several people familiar with the matter.

The Trump transition team did not immediately respond to a request for comment, while Apollo declined to comment on the reports.

Trump’s search for a Treasury Secretary was widening after it was stalled over the weekend, and he was looking at other candidates, Reuters reported on Monday, citing two sources.

Billionaire investor John Paulson was originally one lead contender but exited the race last week. Howard Lutnick, who was nominated by Trump on Tuesday to run the U.S. Commerce Department, was also an earlier top contender for the Treasury role.

Scott Bessent, a key economic adviser to Trump, is still seen as a candidate for Treasury Secretary.

The Treasury Secretary role is one of the highest-profile cabinet posts, overseeing the country’s financial and economic policy. As such, it is one of the key roles being watched by global investors and Wall Street.

Investing.com – UK inflation rose more than expected last month, climbing back above the Bank of England’s target and potentially stalling further interest rate cuts.

Annual consumer price inflation climbed to 2.3% in October from 1.7% in September, which had been the lowest reading since April 2021, above the 2.2% expected.

The monthly rate soared 0.6%, a jump from the flat reading the prior month.

Core CPI, which excludes volatile energy and food prices, rose 0.4% on a monthly basis, meaning the annual rate rose to 3.3% from 3.2% in the prior month. 

The annual core figure had actually been expected to fall to 3.1% in October.

While the annual headline figure is still some way below the 11% it peaked at two years ago after the outbreak of the Ukraine war, the fact that it has aggressively risen above the Bank of England’s 2% medium-term target could prove problematic for the central bank given the hefty public spending increases in the budget.

The Bank of England raised its inflation forecasts for the next three years after the Oct. 30 budget, which increased taxes on employers, threatening to push up prices and wages.

Markets were pricing about four rate cuts by the UK central bank by the end of 2025 before the budget, but those bets have dwindled to between two or three since the budget and the election of Donald Trump as the next U.S. president.

The next meeting of the Bank of England’s Monetary Policy Committee, the group that determines the country’s base rate, is in December, and this inflation reading will likely reduce expectations of an interest rate cut then.

BANGKOK (Reuters) -Thailand expects to conduct the third phase of its cash handout stimulus programme in the second quarter next year, when 140 billion baht ($4.1 billion) will be distributed to 14 million people, a deputy finance minister said on Wednesday.

“The various stimulus measures can push growth above 3% next year. We are quite confident of that,” Julapun Amornvivat said, adding that full-year growth in 2024 will not exceed 2.8%.

About 14.5 million people have so far received a payment of 10,000 baht ($290), out of an estimated 45 million who are expected to be take part in the government’s signature scheme.

In January, 40 billion baht will be transferred to the elderly, followed by 140 billion baht in the second quarter to others who registered, Julapun said.

The government also plans to spend 40 billion baht to lower costs of production for farmers by early next year, he added.

Southeast Asia’s second-largest economy grew 3% in the July-September period this year, the state-planning agency said this week, the fastest rate in two years.

The agency forecast growth of 2.6% this year and 2025 growth in a range of 2.3% to 3.3%.Last year’s growth of 1.9% lagged regional peers. The economy has struggled under high household debt and borrowing costs as well as sluggish demand from major trading partner China.

After sustained government pressure, the central bank unexpectedly cut its policy interest rate last month. Its next rate review is on Dec. 18.

($1 = 34.49 baht)

A look at the day ahead in European and global markets from Stella Qiu

Trading was subdued in Asia with everyone waiting for the earnings results of AI darling Nvidia (NASDAQ:NVDA), the world’s most valuable company with a market cap of $3.6 trillion.

Expectations are running high given that its shares already rallied 5% overnight. Trade in options points to a nearly $300-billion swing in market value, which will make for a potentially messy trading session ahead.

In Asia, shares were mixed, with Japan trailing behind with a drop of 0.4%. Wall Street futures were mostly steady and European stock futures also pointed to a subdued start for markets there.

Investors were rattled by Ukraine’s use of U.S. missiles to strike Russia, with Russia lowering the threshold for a possible nuclear strike, although those fears seem to have abated a little.

Bitcoin broke above $94,000 for the first time on expectations that U.S. President-elect Donald Trump’s administration will be crypto-friendly. Trump has yet to announce his pick for Treasury secretary yet but it could come as soon as Wednesday.

Before all the Nvidia action, British inflation data for October is due and any upside surprises there would perhaps add to recent signs that the global disinflationary pulse may have stalled.

Canada’s inflation accelerated back above 2% as investors scaled back the chance of another outsized half-point rate cut from the Bank of Canada in December. Traders are not even sure if the Federal Reserve will cut rates by 25 basis points next month.

Economists expect core CPI in Britain to rise 0.3% on a monthly basis, which would push up the annual rate to 3.1% from 2.9% in the prior month. Headline inflation is likely to have rebounded to 2.2% from 1.9% before.

For the Bank of England, markets are already pricing in a gradual approach to future easing – about one cut per quarter – after chancellor Rachel Reeves’ big spending budget.

There are also a few Fed officials due to speak tonight, as well as European Central Bank President Christine Lagarde, all worth watching to see how far the interest rates in Europe and the U.S. could go the opposite way.

Key developments that could influence markets on Wednesday:

— UK CPI for October

— Nvidia Q3 earnings

— Fed Board Governor Lisa Cook, Fed Board Governor Michelle Bowman, Fed Boston President Susan Collins and ECB President Christine Lagarde due to speak at events

By Kevin Buckland

TOKYO (Reuters) – The U.S. dollar slipped to a one-week low versus major peers on Wednesday, looking to extend a three-day decline from a one-week peak as the market catches its breath following the frantic rally in the wake of Donald Trump’s election.

A boost to the dollar and other traditional safe-haven currencies like the yen overnight proved short-lived, after Russia’s foreign minister said the country will “do everything possible” to avoid the onset of nuclear war, hours after Moscow announced it would lower its threshold for a nuclear strike.

Bitcoin pushed to a fresh all-time peak above $94,000, carried by expectations for a friendlier regulator environment for cryptocurrencies under Trump.

The dollar index – which measures the currency against six major peers, including the yen and euro – fell to a low of 106.07 for the first time since Wednesday of last week, and stood at 106.18 at 0247 GMT.

The index climbed to a one-year high of 107.07 on Thursday, buoyed by expectations for big fiscal spending, higher tariffs and tighter immigration under the incoming U.S. administration, measures which economists say could foster inflation and potentially slow Federal Reserve easing.

Investors are still waiting for Trump to name a Treasury Secretary, following the announcement of several other high-profile appointments, including Wall Street CEO Howard Lutnick as head of the Commerce Department.

Some of Trump’s picks have provoked controversy for their relatively meagre relevant experience.

“The ‘Trump Trade’ that boosted the greenback is facing challenges from Trump’s controversial cabinet nominations and the escalation in the Russian-Ukraine war,” DBS strategists wrote in a client note.

For the dollar over longer term though, “more weight should be put on firm economic data and the increasing likelihood that the Fed may have to slow the rate cut path even more in 2025”, they said.

Traders continue to pare back expectations for an interest-rate cut at the Fed’s next meeting in December. Odds now stand at 57.3%, down from 58.7% a day earlier, according to CME’s FedWatch Tool. A month ago, wagers were at 76.8%.

Fed Chair Jerome Powell said last week that “the economy is not sending any signals that we need to be in a hurry to lower rates”, following a run of robust economic indicators.

The dollar added 0.9% to 154.84 yen after falling sharply to 153.28 on Tuesday following the Russia news.

The euro held steady at $1.0598, having recovered from a drop to $1.0524 in the previous session.

Bitcoin was flat at $91,954 after earlier climbing to a record $94,078.22.

The Financial Times reported that Trump’s social media company was in talks to buy crypto trading firm Bakkt, bolstering hopes of a cryptocurrency-friendly regime under his administration.