Stocks Settle Higher Before Nvidia Earnings

Economic Indicators - The US trade deficit in August decreased to -$59.6 billion from -$78.2 billion in July, which was better than the expected -$60.4 billion [1] - US MBA mortgage applications fell by -5.2% for the week ending November 14, with the purchase mortgage sub-index down -2.3% and the refinancing sub-index down -7.3% [1] - The average 30-year fixed mortgage rate increased by +3 basis points to 6.37% from 6.34% in the previous week [1] Federal Reserve and Interest Rates - The minutes from the October 28-29 FOMC meeting indicated a hawkish stance, with many officials suggesting it may be appropriate to keep interest rates steady through 2025 [2] - The likelihood of a Fed rate cut at the next FOMC meeting on December 9-10 dropped to 30% from 70% the previous week [3][6] - The cancellation of the October employment report by the Bureau of Labor Statistics has reduced the chances of a Fed rate cut [3][8] Stock Market Performance - US stock indexes experienced a recovery, with the S&P 500 Index closing up by +0.38%, the Dow Jones up by +0.10%, and the Nasdaq 100 up by +0.56% [5] - Nvidia's stock rose more than +2% ahead of its earnings report, which is seen as a critical indicator for tech stock valuations [5] - Semiconductor stocks showed strength, with Broadcom, Lam Research, and Applied Materials all closing up more than +4% [11] Corporate Earnings - Q3 earnings for S&P 500 companies rose by +14.6%, significantly exceeding expectations of +7.2% year-over-year, with 82% of reporting companies surpassing forecasts [6] - La-Z-Boy Inc reported Q2 sales of $522.5 million, exceeding the consensus estimate of $517.7 million, leading to a stock increase of more than +20% [15] - Dycom Industries announced an acquisition for $1.95 billion, resulting in a stock increase of more than +10% [15] International Markets - Overseas stock markets showed mixed results, with the Euro Stoxx 50 up +0.13% and Japan's Nikkei Stock 225 down -0.34% [7]