Investing.com - Here's a preview of the top 3 things that could rock markets Friday, May 11.
1. Nvidia to hit new highs (again)?
Shares of Nvidia fell in afterhours trade on Thursday despite the chipmaker’s first-quarter report beating on both the top and bottom lines, supported by strong growth in its datacentre and gaming divisions.
Nvidia reported earnings of $1.98 per share on a GAAP basis on revenue of $3.21 billion, beating analysts' consensus estimates for earnings of $1.46 per share on revenue of $2.89 billion.
The company guided second-quarter sales of about $3.1 billion, which was above a consensus estimate of $2.95 billion.
Nvidia's gaming revenue rose 68% year over year to $1.72 billion, beating Wall Street estimates of $1.65 billion consensus.
Datacenter revenue rose 71% to $701 million, missing consensus estimates of $703 million.
Shares of NVIDIA Corporation (NASDAQ:NVDA) fell 2.23% to $254.33 after-hours on Thursday after the chipmaker hit an all-time high of $260.50
2. Consumer Sentiment Data Eyed
Consumer sentiment data and a speech by St. Louis Federal Reserve President James Bullard will round off the week of mostly negative economic data, which included a duo of weaker wholesale and consumer inflation reports.
James Bullard, a non FOMC voter, is expected to deliver a speech at 08:30 am ET on Friday, a little over week after the Federal Reserve left its benchmark rate unchanged and delivered an upbeat assessment on the U.S. economy and inflation.
The subdued inflation reports seen this week, however, had little impact on expectations for a June rate hike, which remained at 100%, according to investing.com’s fed rate monitor tool.
Michigan’s preliminary consumer expectations due 10:00 am, is expected to show a reading of 88.0 for May, while consumer sentiment is forecast to show a reading of 98.5, down slightly from 98.8 seen in the previous month.
The dollar fell sharply against its rivals on Thursday as GBP/USD pared some of its losses after the Bank of England slashed its growth forecasts after revealing an unchanged rate decision.
3. Geopolitical tensions to continue to overshadow US rig count data?
The weekly instalment of drilling activity from Baker Hughes on Friday, will provide investors with fresh insight into U.S. oil production and demand.
Data last week showed the number of U.S. oil rigs rose for the fifth week in a row last week, pointing to a possible expansion in domestic output.
Yet, geopolitical tensions and the prospect of lower global crude supplies - as countries prepare to shun Iran exports ahead of pending US sanctions - have overshadowed rising US rig counts.
Rising geopolitical tensions could continue to underpin the price of oil as Iran and Israel skirmishes in Syria intensified over recent days.
Crude futures settled higher on Thursday, shrugging off signs of higher U.S. supplies.