Stock Market Update

[BRIEFING.COM] The major averages are holding on to modest gains that push the S&P 500 (+0.2%) and Nasdaq Composite (+0.1%) into positive territory for the week, while the DJIA (+0.3%) still holds a modest 0.1% week-to-date loss. 

Attention turns to NVIDIA (NVDA 181.72, -0.06, -0.03%), which will report its earnings around 4:20 PM ET.

The current FactSet consensus calls for adjusted EPS to grow 49% year-over-year to $1.01, while revenue is expected to grow 53% year-over-year to $46.05 billion.

NVIDIA tends to provide revenue and gross margin guidance for the next quarter. Current guidance for Q2 stands at revenue of $44.10-45.90 billion and non-GAAP gross margin of 71.5-72.5%. The company is continuing to work toward achieving gross margins in the mid-70% range late this year.

NVIDIA previously said its Q2 outlook reflects a loss in H20 revenue of approximately $8 billion due to the recent export control limitations. However, NVIDIA subsequently resumed some sales to China with a new 15% fee imposed by the US government on Chinese chip sales. This may explain why Q2 revenue consensus is above prior guidance.

The stock is up 92.7% from its April 4 lows, while the S&P 500 is up 27.7% in that same time span.