NVIDIA and Volkswagen jump and lift market sentiment

Chris L
Category:  Financial News
US stocks market opened the day with gains after offsetting a weak pre-market on the back of a Donald Trump Tweet pairing a Democratic victory in the mid-terms to a collapse in Wall Street. However, investors are welcoming news from Volkswagen and NVIDIA that lifted market sentiment and a natural position rebalancing ahead of the end of the month. 

Volkswagen to extend gains above 150.00

Volkswagen reported a better than expected profits for the third quarter of 2018 as the German carmaker announced a net profit of 2.7 billion euros, above the 2.29 billion expected by the market. However, the company said they are going throughout a hard time as more innovation will be demanded every day. Volkswagen invested 9.9 billion euros in R&D.

Volkswagen is trading 4.0% positive on Tuesday at 145.00, its highest level since October 18. The company is making a strong V come back from October 25 lows at 130.0. Technical indicators are currently switching to positive, and the scoop is for more gains ahead. 152.00 is the next natural resistance. 

NVIDIA gets a relief after JPMorgan upgrades shares

Shares of NVIDIA have plunged too much this month according to analysts at JPMorgan. So the firm has raised its rating from neutral to overweight. Remember that NVDA shares have collapsed 34% on October from 292.75 on October 2, to current prices at 192.35, almost $100 per share. 

JPMorgan highlights the chip maker's long-term opportunities in several secular growth markets. NVIDIA Corporation is trading 3.55% positive on Tuesday as investors welcomed JPMorgan upgrade. However, technical indicators remain dovish. Current support for NVDA lies at October 29 low at 176.00. 

Wall Street on the green ahead of monthly rebalancing

US stocks market is trading higher on Tuesday following Monday sell-off. Major indexes are posting gains ahead of the end of the month. The rebound is small but significant. 

As JJ Kinahan said in a recent report, "the market evidently is repricing some assets, and this is a move that could last through the end of the year. One thing that could continue to hurt the market is negative guidance from reporting companies, as that might reinforce ideas that the economic and geopolitical outlook could be worsening."

The Dow Jones is trading 1.01% positive on Tuesday as the DJIA is gaining 245.78 points to 24,688.70. In the last five days, the Dow is 2.32% down. The S&P 500 is 24.19 points up after advancing 0.92% to 2,665.44. The S&P is 3.17% down in the last five sessions. 

The NASDAQ Composite is 0.93% or 65.29 points up to 7,115.58. The composite has been hurt significantly in the weekly basis as it is 5.05% down in the last five trading days. 
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