Stock Market Today: Buy Nvidia; Oil Prices to $100?

Stock Market

The coronavirus remained front and center in the stock market today. However, despite a lower open across the board, equities fought hard to get back into positive territory ahead of Thursday’s closing bell.

The SPDR S&P 500 ETF (NYSEARCA:SPY) climbed 0.14%, the SPDR Dow Jones Industrial Average (NYSEARCA:DIA) slipped 9 basis points and the PowerShares QQQ ETF (NASDAQ:QQQ) rallied 0.32%.

While the news out of China could certainly be better, the markets aren’t yet panicking the way we’ve seen in the past. Specifically, the Ebola panic from a few years ago jarred the markets. Let’s see how investors react as time goes on.

Coronavirus Update

So what’s the latest news? A day after China and other organizations tried to comfort the world regarding a containment attempt, more concerns broke out on Thursday. That’s as the number of patients infected and killed from the new virus strain continues to increase, as do the locations where it’s popping up.

The coronavirus is no longer just in Asia, as reports in India, Europe and the U.S. have materialized, albeit all in very limited cases. Still, travel bans are being put in place and one should expect it to impact business. Particularly as we approach the Chinese New Year, where many in the country — which sports a population of 1.4 billion — take to traveling, both domestically and abroad.

Specifically, Macau may suffer when it comes to revenue, which could impact stocks like MGM Resorts (NYSE:MGM) and Wynn Resorts (NASDAQ:WYNN). That said, the stocks seemed fine on Thursday. That’s after the World Health Organization stated that it’s too early to declare the situation “a public health emergency of international concern.” However, the group said it was split on its decision and may revisit it.

Movers in the Stock Market Today

Nvidia (NASDAQ:NVDA) shares came within pennies of a new 52-week high on Thursday. The action comes as two analysts get more bullish on the stock. UBS upped their price target 25% to $300 per share to go along with a “buy”-equivalent rating. That’s Nvidia’s fifth $300 price target in the last two weeks.

Piper Sandler analysts didn’t add to the count, but did slap a $275 price target on Nvidia, implying about 10% upside from current levels.

Will oil go to $100 per barrel? Not anytime soon, according to Chevron (NYSE:CVX) CEO Michael Wirth. That’s what Wirth said in an interview on Thursday morning, pointing out that supply continues to grow as U.S. shale production is stronger than ever. There’s an abundance of oil and that’s unlikely to change anytime soon, he reasoned.

Tesla (NASDAQ:TSLA) continues to hang near its highs, as the stock just won’t give short sellers a rest. In a move less likely to move the needle, Tesla continues to run with accessory sales. The company has now come out with its own branded wireless phone charger for its vehicles, retailing for $125. That follows a recent introduction of Cybertruck t-shirts.

Hey, you can’t blame a company for taking advantage of an opportunity, right?

After falling for six straight trading sessions and in 10 of the previous 11 sessions, General Electric (NYSE:GE) shares jumped 3.5% on Thursday. The move comes after Morgan Stanley analysts upgraded the stock to “overweight” from “equal weight” and raised their price target to $14 from $11.

Earnings Round-Up

Comcast (NASDAQ:CMCSA) shares sank 3.8% on the day despite a top- and bottom-line beat. Earnings of 79 cents per share beat estimates by 3 cents. And revenue of $28.4 billion grew 2% year-over-year and easily beat expectations by $220 million. Plus, management raised the dividend by 9.5% (giving it a 2% yield), while its Peacock streaming service is on the way. Worries over video-subscriber losses weighed on the stock, though.

Procter & Gamble (NYSE:PG) shares slipped on the day, but closed lower by less than 1%. The fall comes after an earnings beat, but some were surprise the losses was so limited. That’s on account of P&G missing revenue, with sales of $18.24 billion coming in $130 million short of estimates.

These are the types of reactions we get when stocks come into earnings at or near the highs, though.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.

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