Weekday edition
Huang's job at Nvidia, Hims & Hers lawsuit, and your index fund
Nvidia's after-hours move is not yet in your Nasdaq-100 fund's value, and jobless claims land before the open.
At Wednesday’s close: S&P 500 +1.31%, Nasdaq-100 +2.28%, Dow +0.49%
Nvidia tumbles after hours on Times report board may oust Huang
Nvidia Corp. tumbled 8.6% to $158.78 in after-hours trading Wednesday after The New York Times reported that its board is preparing to remove Chief Executive Jensen Huang. An earlier Times report said Huang had an alleged affair with Kimberly Powell, Nvidia's vice president of health care, who reports to him. Citing people who worked at the company, the Times said the pair were caught on video "being affectionate" at a hotel during an Nvidia conference in March.
The after-hours drop more than erased a regular session in which Nvidia jumped 2.9% and added $120 billion in market value. Nvidia accounts for 4.7% of the value of the 500 largest U.S. companies, so that gain added $134 to $100,000 spread across them by size. The Times said the board could meet as soon as Wednesday to decide its next steps. Nvidia did not immediately respond to a request for comment.
For readers
What it means for you: Nvidia closed Wednesday's regular session at $173.73, already 27.4% below its 52-week high of $239.24. The after-hours drop on the Times report came on top of that gap. A single stock carries company news in full, with no other holdings to offset it. On $100,000 in a Nasdaq-100 fund, the regular session added $2,280, and none of the after-hours move is in that number. Weekly jobless claims arrive today at 8:30 a.m. ET, an hour before Nvidia's first regular trade since the report.
Markets
Wednesday’s close
| Market | Level | Change |
|---|---|---|
| S&P 500 | 7,619.38 | +1.31% |
| Nasdaq-100 | 28,374.25 | +2.28% |
| Dow | 52,486.49 | +0.49% |
| 10-YrNov. 10 | 4.98% | +10 bp |
| Bitcoin (24 hr)As of this edition | $73,405 | −0.41% |
The day ahead
Thursday’s setup
Layoff filings and Cisco's results fill Thursday, then Friday's producer price report may test bond yields that jumped earlier this week, ahead of retail sales and Fed minutes next week.
8:30 a.m. ET Unemployment Insurance Weekly Claims. Layoff filings feed into rate expectations, and those help set what you pay on credit cards and auto loans. The Labor Department counted 189,000 new claims in the week ended Oct. 31. A higher count could signal more layoffs and strengthen the case for rate cuts, easing borrowing costs over time. A lower one could keep card and loan rates where they are.
After close Cisco earnings. Cisco accounts for 0.44% of the combined value of the 500 largest U.S. companies, a slice held by most broad index funds. A $1,000 stake bought a year ago is worth $1,405 now, though the stock sits 22.5% below its 52-week high of $130.00. The release could show whether the company's outlook for the months ahead holds up, and whether anything in it explains that gap from the high.
Fri 8:30 a.m. ET Producer Price Index, October. Mortgage and savings rates take their cue from bond yields, and this report could move them. The Bureau of Labor Statistics said producer prices rose 1.3% in September. The 2-year Treasury yield already jumped 17 basis points to 4.73% on Nov. 10. A hotter reading could push mortgage rates higher, while a cooler one could ease borrowing costs and lower what savings accounts pay.
If you own
Micron shares surged 11.9% on Wednesday, adding $11,890 on every $100,000 held and $98 billion in market value, to $920 billion. Micron accounts for 1.0% of the value of the 500 largest U.S. companies, so its gain added $122 to $100,000 spread across them by size. If you own the shares directly, the question is how much of your portfolio now rides on one chipmaker. Micron's next quarterly results may show whether sales keep pace with the price.
Sector funds split on Wednesday: a technology sector fund, the day's best, surged 3.2%, adding $3,230 on $100,000 held. A consumer discretionary fund, home to retailers and carmakers and the day's worst, was little changed and lost $50 on the same stake. Tech's gain follows the Nasdaq-100's 6.7% drop in October. A few chipmakers could account for much of a tech fund's gain; each fund's published holdings list may show its biggest positions.
S&P 500 index funds added $1,310 on $100,000 held on Wednesday, part of $3,290 gained so far this week. The index has risen 0.5% in November, after it fell 0.9% in October. Those numbers predate Nvidia's after-hours drop. The question for a 401(k) holder is how much one company's news can move a broad fund; Nvidia's first trade at 9:30 a.m. ET today may show it.
Need to know
Top stories
- 1
Johnson & Johnson bipolar drug meets goals in another late-stage trial. Johnson & Johnson said its drug Caplyta met its main goals in a late-stage trial for manic episodes in adults with bipolar disorder. In topline results, 43.9% of treated patients improved by at least 50% on a mania rating scale, against 23.7% on a placebo, or dummy pill. J&J said it plans to use this and an earlier trial to support a U.S. regulatory filing. The shares closed at $280.41, 0.6% below their 52-week high. J&J makes up 0.75% of the combined value of the 500 largest U.S. companies. Read more
- 2
AVEX · +4.57% AEVEX rallies as revenue beats estimates and outlook rises. AEVEX shares rose 4.6% on Wednesday, when the defense technology company reported third-quarter results after the close. Revenue came in at $189.70 million, above analyst estimates of $149.44 million, though a loss of 40 cents a share missed forecasts for a profit. Chief Executive Roger Wells said demand and the BlackSea acquisition let the company raise its full-year revenue outlook to $820 million to $840 million. AEVEX listed in April, and only $27 million of its stock changed hands, so its swings may run sharper than a broad fund's. Read more
- 3
Hims & Hers faces wider FTC lawsuit as more states join. In an amended complaint filed in Northern California federal court, the Federal Trade Commission added Arizona, Florida, Nebraska, Ohio and Wisconsin to its suit against telehealth company Hims & Hers. They join Utah and California as plaintiffs. The FTC's complaint alleges Hims enrolled users in recurring prescription subscriptions, charged them soon after intake forms, blocked refunds and hid refill dates. It also alleges Hims shared patients' health data with advertisers including Meta Platforms and Snap. The claims are unproven; the case could bring penalties or changes to how Hims bills subscribers. Read more
AI corner
Three changes that matter
Topics: Chips, Markets
CoreWeave eases AI funding worries with a lighter borrowing plan
CoreWeave said it expects about $9 billion in customer prepayments and deposits in the coming months and plans no parent-level unsecured debt through 2027 at current yields. Its shares surged 24.7% and Broadcom rose 4.0%, easing the funding worry over AI spending in your tech fund.
Topics: Deals, Startups
Anthropic's banks weigh pricing its IPO above the range
Underwriters are considering pricing Anthropic shares above the $70 to $78 range, the Financial Times reported, after Anthropic said it would seek a valuation of up to $1.4 trillion. CNBC commentator Jim Cramer said the pricing could sway investor views across the AI trade that fills your tech fund.
Topics: Big Tech, Models
Anthropic launches Claude Sheets to compete with Microsoft Excel
Anthropic unveiled Claude Sheets, a spreadsheet tool that competes with Excel, plus meeting and whiteboard tools at a San Francisco event, the company said. Microsoft slid 2.3%; at 4.3% of the 500 largest U.S. companies' value, its drop took $97 from $100,000 spread across them by size.
How it works
After-hours trading
Why Nvidia's after-hours price comes from a far thinner crowd than its close. After-hours trading, which runs after the regular close, has far fewer buyers and sellers, so big orders move prices more. Nvidia jumped 2.9% by the close, then tumbled 8.6% after hours to $158.78 once The New York Times reported its board may remove CEO Jensen Huang. Index funds price at the regular close, so that drop is not in yours yet. The full market returns at the 9:30 a.m. ET open, when such moves may shrink, hold or reverse.
The close
The big picture. The Nasdaq-100 surged 5.1% this week and is up 12.4% for the year. The S&P 500 is up 11.3% this year. The Dow, which jumped 1.7% in October, has added 1.4% in November and is up 9.2% for the year. Nvidia's after-hours drop now lands on that weekly rebound, and it could test how much of the gain holds.
On the calendar. October producer prices, what businesses charge for their goods, arrive Friday, Nov. 13, 8:30 a.m. ET. Treasury bills, a guide to what money-market funds pay, yielded 4.30% on Tuesday. Hot business prices could keep cash earning near that rate and hold credit-card and home equity line rates where they sit.
Not investment advice.