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.