US stocks rebounded this morning, with NVIDIA's earnings report being the focus.

U.S. stock futures edged higher on Wednesday, and the market has indeed been a bit uncomfortable this week. The Dow rose 73 points (+0.16%), the S&P 500 rose 16 points (+0.24%), the Nasdaq rose 77 points (+0.31%), and the Russell 2000 rose 8 points (+0.37%).

Trade deficit hits lowest point of the year

The US trade balance for August was released this morning - the government shutdown delayed this batch of data. The results are quite good: a deficit of $59.7 billion, better than the expected $61 billion, and a significant improvement compared to last month's $78.2 billion. Compared to the record deficit of $136.4 billion in March, this trend is indeed improving.

But looking closely, there are some issues: imports are shrinking and exports are weak. The good news is that subsequent data will follow up, and hopefully, there will be continued improvement.

Retail stocks are experiencing a stark contrast between hot and cold

Target fell another 3.4% in the early session. Earnings report: Earnings per share of $1.78 (beat expectations by 2 cents), revenue of $25.27 billion (missed expectations by 0.36%). It has already dropped 34.5% this year, and this wave has dealt another blow.

Lowe's rose 5.9%. Earnings per share were $3.06 (beat), revenue was $20.81 billion (flat), and the key point is that same-store sales outperformed competitor Home Depot, which is the main highlight.

TJX Group (parent company of TJ Maxx) double line breakthrough: Earnings per share of $1.28 (expected $1.22, beat 4.9%), revenue of $15.12 billion (expected $14.88 billion, beat 1.6%).

NVIDIA will announce after today's close

Mag 7's last earnings report comes out today. Market expectations: earnings growth of 53.1%, revenue growth of 55.85%. This guy's market cap is already 440 trillion, and it can still grow like this, quite impressive.

In futures trading, NVDA rose by 1.6%, with a cumulative increase of 35% this year. Since the low point in October 2022, it has surged by over 1500%. The current forward P/E is over 40 times - high, but relatively acceptable.

The key is: every week there are new AI service companies reaching partnerships with it, this guy is the center of current AI infrastructure.