Here are five things you must know for Thursday, May 27:
1. — Stock Futures Waver Ahead of GDP Reading
Stock futures fluctuated Thursday as investors awaited the latest data on U.S. economic growth, hoping the reading provides clues on whether rising price pressures will be transitory as the Federal Reserve repeatedly has suggested.
The Commerce Department will release the second estimate of first-quarter GDP prior to the opening of trading. Economists surveyed by FactSet expect a seasonally adjusted annual growth rate of 6.4%, in line with the first estimate. The growth rate for GDP in the fourth quarter was 4.1%.
The U.S. economy, rebounding rapidly from the coronavirus pandemic, has brought with it concerns over rising inflation and fears the Federal Reserve could pull back on its extraordinary support.
Many Fed officials this week have said they don’t feel it will be necessary to change course since rising price pressures likely will just be temporary.
Vice Chairman for Supervision Randal Quarles, however, said Wednesday that if the economy continues on its brisk recovery path there soon will come a time for the central bank to begin discussing slowing the pace of its monthly purchases of $120 billion in Treasury and mortgage-bonds.
Stocks finished modestly higher Wednesday with small-caps leading the advance. The Russell 2000 rose 2%.
2. — Thursday’s Calendar: Costco and Salesforce Earnings, GDP
Earnings reports are expected Thursday from Costco (COST) – Get Report, Salesforce.com (CRM) – Get Report, Best Buy (BBY) – Get Report, Dollar General (DG) – Get Report, Dollar Tree (DLTR) – Get Report, Gap (GPS) – Get Report, Box (BOX) – Get Report, VMware (VMW) – Get Report, Dell Technologies (DELL) – Get Report, HP Inc. (HPQ) – Get Report, Medtronic (MDT) – Get Report and Ulta Beauty (ULTA) – Get Report.
The U.S. economic calendar Thursday includes the second estimate of first-quarter Gross Domestic Product at 8:30 a.m. ET, weekly Jobless Claims at 8:30 a.m. and Durable Goods Orders for April at 8:30 a.m.
3. — Nvidia Issues Bullish Revenue Forecast
The company said it expects fiscal second-quarter revenue of $6.17 billion to $6.43 billion, well ahead of analysts’ forecasts of $5.47 billion.
In the first quarter, Nvidia said revenue jumped 84% to $5.66 billion. Data center chip sales rose 79% to $2.05 billion, while revenue from gaming more than doubled to $2.76 billion.
Nvidia said first-quarter revenue for its new processors specifically for mining cryptocurrencies was $155 million. It expects sales from the crypto chips of $400 million in the second quarter.
“At the end of the day, while Nvidia may be benefiting from the crypto demand, the reality is that the company’s core end markets — primarily gaming, data center and pro visualization – are firing on all cylinders and as the digital age ramps up and was accelerated by the COVID pandemic, Nvidia‘s products are becoming increasingly more crucial,” said Jim Cramer and the Action Alerts PLUS team, which holds Nvidia in its portfolio.
An ad on the tech giant’s website said the Apple Wallets, Payments and Commerce team was looking for a bizdev manager to find and negotiate partnerships in alternative payments.
“We need your help forming partnership framework and commercial models, defining implementation paradigms, identifying key players and managing relationships with strategic alternative payment partners,” the ad said.
Apple said it wants the candidate to possess more than five years of experience working in or with alternative payment providers, including digital wallets, buy now-pay later, fast payments, cryptocurrency and more.
5. — Shorting AMC and GameStop? You’re Out of Your Mind, Says Cramer
Anyone shorting the stocks of AMC Entertainment (AMC) – Get Report and GameStop (GME) – Get Report is out of their mind, TheStreet’s Jim Cramer told his “Mad Money” viewers on Wednesday evening.
The WallStreetBets crew is too powerful, Cramer said, and anyone who dares to bet against these stocks could get slaughtered.
Cramer offered up some other stocks the group might want to look into. He said Beyond Meat (BYND) – Get Report has 22% of its shares sold short at the moment, yet has incredible growth potential. Cramer also mentioned Ford (F) – Get Report and Roblox (RBLX) – Get Report as two stocks for the WallStreetBets crowd to look into.
Ford is a holding in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stock? Learn more now.