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Nvidia tops earnings, House considers crypto framework: Market Domination Overtime

Nvidia's (NVDA) fiscal first-quarter earnings results are the biggest story in this installment of Market Domination Overtime with Julie Hyman and Josh Lipton. The Dow Jones Industrial Average (^DJI) dropped 200 points ahead of Nvidia's standout earnings figures.

Nvidia ended up beating estimates for its 2025 first-quarter, posting revenue of $26 billion (expected $24.69 billion) and adjusted earnings of $6.12 per share (expected $5.65 per share). Defiance ETFs CEO and CIO Sylvia Jablonski sat down with Yahoo Finance to discuss the lasting impact on markets, tech, and other industries.

VF Corp (VFC) and Synopsys (SNPS) shares react to their latest earnings data.

Yahoo Finance's Jennifer Schonberger also break down the latest news out of Washington, D.C. regarding the the Financial Innovation and Technology for the 21st Century Act — or FIT21 — that could provide a regulatory framework for cryptocurrency. Both bitcoin (BTC-USD and ethereum (ETH-USD) prices are moving on this news as experts look ahead to how the Senate will vote on this if it passes through the House.

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This post was written by Luke Carberry Mogan.

Video transcript

There's the closing bell on Wall Street and now it is market domination over time.

We're joined by Jared Bli to get you up to speed on the action from today's session.

So let's start with where the major averages ended up near the lows of the session for the Dow Jones industrial average.

And as we talked about earlier, that's after we got the Federal Reserve minutes from the last meeting, which indicated participants willingness to perhaps tighten policy if inflation data does not improve here.

So we saw that pull back in the dow about a half a percent or 200 points.

The S and P down about a quarter percent, the NASDAQ down 1/5 of 1%.

And then the Russell 2000 really taking a bigger hit here.

It tends to be more interest rate sensitive and that was down about 9/10 of 1%.

All of that as we saw a relatively modest move in yields upward on the 10 year, only two basis points higher to 4.43%.

And then of course, there's the other story that we continue to watch for and that is NVIDIA, uh NVIDIA off about a half a percent on the day.

Remember it closed at a record yesterday, but pulling back a little bit into its earnings that are coming in just a little while here as we talked about it earlier, the shares up some 92% year to date.

Let's look at a three year chart just for fun.

Up, 530% Jared.

Not only that, uh, we've had some records recently but not today.

So let's get to our sector action where tech was just barely holding on to some gains here.

And there we go XL K up 23 basis points for the day.

Health care, industrials, communication services also rounding out uh some of the the leaders here but not by a lot.

Energy took a hit to the downside 1.85%.

XL U that's utilities taking a downbeat and discretionary also down about 1%.

And uh let's check out our leader, our leaders here.

We have solar energy first.

Solar uh is a kind of the story there but tan the ETF is up at 9%.

Then we have the Sox ETF that's chip makers up 1% despite the NVIDIA loss today.

Biotech also in the green.

But what didn't work?

Oil was the worst sector.

PS ce covers small oil drillers.

Uh That's down the most here down 2% home builders, cannabis and bets that is gambling rounding out the bottom road there and let's take a look at some heat maps here.

We got arc uh Tesla down 3.5% today.

So innovation, the disruption field kind of mixed.

We do have uh CRISPR therapeutics up about 3%.

So is Shopify and Coinbase just behind them.

And let's take a look at China which uh had a bit of a setback today, but Pinduoduo after earnings up uh 1% and those were earlier in this week, guys, Jared, thank you.

Stocks closing today lower as markets continue to await.

The latest earnings report from NVIDIA joins us now, from what the report could mean for investors and the broader markets.

Let's welcome in Art Hogan chief Market strategist at B Riley Wealth.

Art.

It is good to see you.

So let's just write start right there.

Uh or NVIDIA after the bell, what do you expect to see art and what, what does it mean?

You know, the company reporting, what co Jensen Wong says, what does it mean for the broader market?

Yeah, it's interesting, Josh, this is a company that's actually surprised Wall Street for the last four quarterly reports.

Three of those quarters, they had a massive updraft after the reports because they beat by so much.

So the average over the last four quarters on the earnings line, uh the consensus was beat by about 20%.

They likely won't beat by that much uh in this particular quarter.

And then they've grown their revenues 200% over the last two quarters.

So clearly, that's a tough bar across that said, we know they're sold out, right.

We know this is a company that can't make these things fast enough, but we also know the introduction of the Osborne Effect, meaning they've got a new product coming out in the fall.

Does that delay orders or push off orders of the H 200?

We'll have to see how they navigate that process.

I think all in this is a company that's in the early stages of what's going to be a, a massive tam.

And I think that there, if there's a negative reaction to anything, they have to say, it's likely a buying opportunity very much like last quarter when they beat the numbers broadly, but had run up into the report stock pulled back and two weeks later, that was a screaming buy.

So I think you may see that same kind of effect where you, you have a mild disappointment, whether it's in the revenue line because people are maybe waiting for the next chip.

Um, and not predicting that, but certainly a possibility.

Hey, art, it's Julie here.

So as we've been talking about all day, NVIDIA is important, of course, not just for itself, but because of its weighting and we're actually looking at its weighting in various averages right now, more than 5% of the S and P 500 but it's not just that it's also the sort of companies or it's just customers and its vendors and, oh, utilities too and whatever else has to do with a, I, so, how are you thinking about playing it on a sort of broader basis?

Yeah.

Well, I think Julie, that's a great question.

I think 2024 has proven to be the, the, the year where we shifted from.

Everyone has to say A I, and, and, and declare that they've got an artificial intelligence plan where in 2024 we, we're, we're really not willing to have people spend too much on A I necessarily and not tell us where the revenues are coming from.

So really, it's the two of the hyper scale that have done very well and have shown how they're going to make revenue with this, you know, this new technology, which is artificial intelligence, whereas meta came out and said we're spending this much, but we'll tell you about the revenues later.

I think that's the new dynamic right now.

And I think that's really important, but to the extent that you look at an NVIDIA, which I think is important because it's really the, the first and only company that could show massive revenue growth in this new dynamic.

That is artificial intelligence.

I think it's important to understand that they still trade at a relatively reasonable multiple unto themselves on a forward basis.

They're trading at something like 38 times that will surely come down after the report on a trailing basis, trading about 78 times that likely comes down as well.

That has happened four quarters in a row.

But I think in a real sense there's not many surprises necessarily because we've already heard from most of the big customers and they've already told us, you know, how much we're spending on artificial intelligence and a great deal of that funnels down to NVIDIA.

So I, I just think that it's, it's Nvidia's game to lose here.

And they've done a very, very good job of managing that process throughout the last four quarterly reports.

I suspect they do a great job this time and beyond NVIDIA art, when you, when you look across for opportunity in the stock market right now broadly, do you still want to be overweight tech here?

Yeah, I think you do.

I think it, it's, you know, for example, a great example of that would be Apple who, you know, the of, of the mag seven, the last company to really talk about what their artificial intelligence uh program will look like and, and what it's going to mean to the uh the uh user um Worldwide Developers Congress uh happening in June likely is where they roll out and make that final announcement.

Everybody jumped on the bandwagon early and said, yes, we're using A I, here's how we're going to use it.

We're gonna make you more productive.

You're going to love the experience.

Apple has waited.

Apple is not.

Apple is a fast follower.

They're never first in anything.

They weren't the first mp3 player or laptop or a notebook or phone.

And I think this is going to be another example of that.

So when you think about big tech that hasn't appreciated the their potential in artificial intelligence, Apple likely falls into that category and you only have to wait until June to find out what that means to you.

All right.

So let's get beyond tech for just a second here.

Art because we got those fed minutes today as well.

That put a little bit of pressure on the market at this point.

Do you think there's a chance there could still be a hike in rates?

I don't think there's a chance there's gonna be a hike in rates.

Uh This year.

I think that we've seen the trajectory of inflation um starting to slowly work in the right direction, right.

We had a hot CP I that caused the sell off in April, a cooler CP I, we had a hot jobs number that caused the sell off in April and also made treasury yields bounce pretty high for 4.3 to 4.7%.

Both of those have receded.

Um And you're seeing a cooler jobs print and you're seeing a cooler CP I that likely continues, especially since for the first time in this whole cycle of 16 months, we owner equivalent rent.

The portion of shelter cost has finally cracked a little bit.

We know in reality that likely cracks a whole lot more.

So, I think by the time the September Meeting rolls around and the core PC is sitting at 2.7% where they had projected it might exit this year at 2.6%.

And penciled in three rate cuts will likely make them feel comfortable enough to throw the first rate cut at us.

But I don't think that rate hikes I, I really don't think is part of the program right now.

All right.

Really good to see you.

Thanks for being here.

Thank you.

Well, we've got some earnings today from synopsis, not in video yet.

Synopsis.

That software company, uh those shares are down by 4% and that's after synopsis actually cut its forecast for the full year here.

So that seems to be weighing on the shares.

Um This is the company also announced it got shareholder approval for its acquisition of Ansis, what it, which announced a couple of months ago.

So if you look at those synopsis numbers for the full year now, expecting 6.09 billion to $6.15 billion in revenue, 6.57 to 6.63 is what was estimated there.

So cutting it close to what analysts had been expecting actually.

And the company also for its second quarter, its earnings per share did beat estimates at $3 and revenue did rise 4.3% roughly in line with estimates at $1.45 billion.

But this is one of these companies, when we talk about these ecosystems around A I and around this is one of those companies, not that much of its business is A I yet, but it's in the semiconductor sort of ecosystem.

Yeah, they provide software to help engineers, design, architect, verify chips A I, you know, it, it was interesting though Julie, before this print, you saw some analysts um I think at Bloomberg, for example, arguing it, it is one of those names that where A I should be a long term tail wind because the A I solution um these analysts were arguing is is gaining traction with customers.

Another issue, you know, NVIDIA, I don't know.

Have you uh heard that we're mentioning that a bit that name, right?

NVIDIA.

Um Remember synopsis recently told us to actually now working with NVIDIA not too long.

I basically helping NVIDIA develop chips faster uh essentially.

So it'll be interesting how much that's talked about in the call as well.

Yeah.

And uh Cine Cecin Ghazi, in the statement, talking about customers continue to invest in synopsis to maximize their R and D and power future innovation.

So, um you know, the shares are down, but um he's sort of striking an optimistic tone and we're gonna get more from Cecin by the way because we are gonna be speaking to him tomorrow.

Synopsis Ceo Cecin Ghazi will be joining us on the program.

Uh, there's another company out with earnings that is far from A I, we're talking about underwear and clothing VF Corporation.

They might mention A I, you don't know, they certainly could, maybe you can try, maybe you can try and close with A I, I don't know.

VF Corp reporting fourth quarter earnings.

The van's owner coming out with those numbers and speaking of which van is expected to be weak here.

But if you look at the, um, at the numbers, uh, the company, sorry here, adjusted loss per share from continuing operations and unexpected loss there of 32 cents, uh adjusted earnings per share of one 0.3 cents is what analysts had been anticipating.

So an unexpected loss there on an operating business uh basis and uh, the company also saying 2025 revenue will rise by 10%.

This is after its fourth quarter revenue.

Did miss analyst estimates they're naming a new CFO as well, Paul Vogel.

So that's amongst the announcements we're getting there from the f course.

Yes, the company controls vans North face Dicky and um, they did hire the new C EO over the summer.

There's been kind of these concerns.

I mean, the stock's been under a lot of pressure heading into the, for even a lot of concerns about weakness in North America wholesale direct to consumer and you, you know the street, even with that stock being hit.

Not much love, you know, you think sometimes people street starts to think things are priced in but most still on the sidelines.

Yeah, just quickly here, I'm looking at the division breakdown vans revenue in the fourth quarter down 26% north face revenue down by 5%.

All right, moving on time now for what to watch.

Thursday, May 23rd starting off on the earnings front.

See a batch of retailers reporting including Ross Deters and Ralph Lauren Ross announcing first quarter results after the close and I suspected the company to increase 21 sales as Ross expands its reach to better brands including Nike and Michael Kors.

Moving over to the FED will be getting some commentary from Atlanta Federal Reserve President Rafael Bostic in afternoon.

This coming after the F one MC minutes from its May meeting were released earlier today where various members mentioned willingness to tighten policy further and take a look at the economy.

Another piece of economic data coming out in the morning, that's the monthly Purchasing managers index report for May economist forecasting uptick in services while manufacturing holds steady.

Give us another piece of the economic puzzle as the fed decides on potential rate cuts this year, I have to say um we're very excited about our next item which as you with NVIDIA Yahoo Finance is gonna have an exclusive interview with NVIDIA, Ceo Jensen Wang.

That will be on our website later tonight, as well as our morning show tomorrow at 9 a.m. Eastern and coming up, we're just minutes away now from Nvidia's highly anticipated first quarter earnings report.

We'll be breaking down the numbers when they come out.

Stay to more market domination overtime coming up, Bitcoin and Ethereum trending higher this week.

Jared blick standing by with a deeper look at the latest moves in crypto.

Jared.

That's right.

It's been kind of quiet over the last 24 hours on our crypto heat map behind me.

We'll pull that up.

You can see Bitcoin up 42 basis points.

Ethereum in the upper right up, 33 basis points.

Let me just show you the trailing five days.

We saw an incredible explosion in Ether.

Uh This is over the last three days.

It was Monday afternoon.

Uh word came those Ethereum, the spot, Ether Bitcoin, the spot Ether Tfs finally coming to market potentially.

And this would mark an about face for the sec and this all came after this fit.

21 bill flew through the House of Representatives.

Looks like it might get to President Biden's desk.

Looks like he might sign it.

Now he come out against it.

But all this controversy has just kind of cemented the fact that the parties, two of them Republicans and Democrats alike not ignore crypto.

So crypto is on the agenda and we'll have to see how that plays throughout the election.

But you got to think that there is going to be some favorable talk, but that's just speculation.

Let's take a look at Bitcoin prices.

If we show the year to date, we can see that Bitcoin is now right up against the upper end of its most recent trading range.

Hasn't made any new highs since March, but this looks like a healthy consolidation.

We'll have to see if we can gather any steam on the next potential catalyst.

Um I do wanna check out what's been and show what's been happening with the ETF S as well.

We have a plethora of spot, Bitcoin ETF S and also some futures based ETS including Ethereum and here's a performance today.

Uh I just note that we have seen an incredible explosion into uh some of these uh individual names.

I bet that's Blackrock offering and Fidelity as well guys.

Thanks a lot, Jared.

Appreciate it.

Bitcoin and Ethereum are rallying this week as we've just heard as lawmakers vote on new crypto legislation.

Yahoo Finance's Jennifer Schonberger is here with more details.

Hi, Jen.

Good afternoon Julie.

It's great to see you and a watershed moment for the crypto industry.

The house is set to vote shortly for the first time on legislation that would create a comprehensive regulatory framework for digital assets.

The legislation being called the Financial Innovation and Technology for the 21st Century Act or F 21 for short is one that house Financial Services Chair Patrick mchenry has been pushing for the better part of a year and one that the crypto industry highly favors the legislation would establish the commodities futures trading commission as a leading regulator of digital assets.

There would be clear divisions for what the CFTC will regulate and what would fall under the purview of the SEC.

It would also establish consumer protections and bar the sort of co mingling of customer funds that played a role in the undoing of crypto exchange FDX.

Back in 2022 Republican lawmakers see this legislation is creating much more clarity for the crypto industry but most Democrats led by House Financial Services Committee ranking member, Max Waters oppose this bill.

Waters warns the bill would effectively de regulate most crypto by removing them from the purview of the SEC.

Now, in a rare rebuke CC chair GG who is leveled numerous enforcement actions against the crypto industry slammed this legislation in a statement earlier today saying quote, it would create new regulatory gaps and undermine decades of precedent regarding the oversight of investment contracts, putting investors and capital markets at immeasurable risk.

Now, this vote on F 21 is expected around 5 p.m. here in Washington.

This legislation is expected to pass in the house thanks to support from Republicans and a handful of Democrats, but support in the Senate remains dim at this point.

Uh Mick Henry told reporters late yesterday afternoon, he's hopeful that a strong vote tally in the house could galvanize the Senate to take a fresh look at this legislation, Jennifer Ser, thank you very much.

Well, we're just moments away from those Invidia numbers here.

Speaking of things that happened at 5 p.m. the conference call for NVIDIA, the shares little change in after hours trading as we await those numbers that are scheduled to drop at any point here.

It looks like we're getting them here.

So the company coming out with first quarter revenue of $26 billion that's versus the estimate of $24.69 billion.

A data center revenue at 22.6 billion.

That is above estimates as well.

Automotive revenue, $329 million that's been a less important part of their business on a relative basis but still growing.

It beats estimates and adjusted gross margin at 78.9% versus a 77%.

0, company isn't announcing a cash dividend.

They, they raised up 100 and 50% to 1 cent to one cent a share and is also announcing a 10 for one forward stock split that will be effective on June 7th.

The company saying it's poised for its next wave of growth and we're getting a forecast.

Everything's coming at once here, Josh second quarter revenue will be $28 billion plus or minus 2%.

The estimate was for $26.8 billion.

So beating on every metric once again announcing this initial, announcing this 10 for one stock forward stock split.

Yeah, I mean, the cash dividend here is small.

It's sort of token, but nonetheless, raising that cash dividend as well.

So, you know, just coming out beating again.

But as our Josh Shafer pointed out earlier, there's not always, you know, it, the what the company says and what the stock does do not always match.

This is the first plus reaction.

Yes, but that could change, that could change after we get the conference call that could change as investors rejigger, you know, there's a lot of options activity in the stock as we've talked about.

So we will see what ends up happening.

You talk so much about NVIDIA because listen, Julie A I is the big trend.

Companies are excited, investors are excited.

It doesn't happen without this company NVIDIA.

I mean, how many companies that we talk about Microsoft Dell service?

Now they're all building on Jensen's Wong's chips.

Um I wanted to point out data center that is of course where you make a bee line to 22.6 billion.

The estimate was 21.1 billion a nice big beat there.

Um You know, there was these kind of these threads we were pulling on Julie, we talked about this for analyst.

Well, you know, the new GP U platform, Blackwell's coming and does that mean some of these customers who know they would pause delay because they would wanna for the the shiny new thing.

But listen, data center beats hand and and guidance also.

Ok, let's talk about gaming for just one second here because I know you were looking at that gaming revenue $2.6 billion is just a little bit shy of estimates.

Now, as we talked about earlier, we showed the pie chart from 2021 versus 2024.

And how much more of the revenue now comes from data center.

But gaming is not nothing.

A $22.6 billion quarterly revenue business is not nothing.

And so that, that's just something to keep an eye on.

It has not been as strong as of late as you know, we've seen a lot of attention and resources shift to you.

You listen, we've been covering this company, both of us for a long time and the transformation of the company is remarkable.

I mean that, that's what you used to talk about was gaming, crypto.

That's what mattered.

And now listen, gaming is still is still meaningful.

It's a big, it's an important part of the company's business, but the attention has shifted to data center.

It has and on that basis, they, all right, NVIDIA just reporting a beat on earnings revenue raising its dividend and a stock split and joining us now is defiance ETF S CEO and Cio Sylvia Jablonski, uh Sylvia it is great to have you.

Listen.

So, you know, you went into this print stock was up 90% already this year.

The expectations were sky high but they beat a report, they beat Sylvia at least initially here.

Investors, like what they see.

Let, let's get your initial reaction.

What do you, what do you make of the report, Sylvia?

Yeah.

Hi, Josh.

I mean, this is goldilocks.

Right.

I think that, you know, they, they beat on both numbers, they beat on profits, they've been on revenues, they're up 200% over the year.

Um seller performance.

Look, I think A I is the biggest mega trend that we have and it's going to impact every single industry out there and these numbers tell us that that's playing out, right?

All of these different industries are very likely, you know, increasing the breadth of demand from just tech companies to, to just revol revolutionizing, you know, how we do other things, whether health care, financial um financial security, financial reporting, banks, risk trading, you know, quantum competing super computing all of it.

So Goldilocks number Jensen Wong is the man of the year.

I think um the bellwether of the market and I think investors are happy about it.

I mean, this this move post market is just great and the thing that I'd be worried about and Julie mentioned this a lot of times, you know, the the stock pricing was around after earnings and then, you know, you don't know where it's going land but, um, oftentimes it has to do with data center and Outlook and I mean, 22 versus 21 and then Outlooks, you know, beating two.

So I think we're, I think we're pretty good here.

Plus the, the split is awesome.

Right.

It lets investors that had FOMO get in at lower prices.

Yeah, I was gonna ask you about the split.

Sylvia.

How much do you think that, I mean, particularly for I, I wonder and maybe you have some insight into this uh that feels like more of a move for retail investors, right to get in on this.

Is there any importance also for uh institutional investors?

So it's really interesting because it just, you know, my lifelong career in capital markets, the the response is always that reverse splits and forward splits don't matter.

You know, you have the same thing at the end of the day in terms of the notional value, the amount of money you have is the same, right?

It just kind of switches for um more shares at a lower price.

But I think, yeah, 100% it's geared towards retail investors.

Young investors, individuals can now get into the stock.

It's really hard to, you know, hard to buy a stock that's trading um at these prices.

And I think that, you know, it's in the case of NVIDIA, it is going to matter because I think it's going to open up new demand and it's a popularity trade.

It's a popular stock and, yeah, I think it's going to matter for them.

I do.

And the cash dividend is nice too.

That, that's going to matter for institutions.

Yeah.

No one, no one sleeps on capital return.

Uh Sylvia, let me ask you this too.

I'm just curious.

Um, what do you think this report means Sylvia for the broader market?

What, what in video reports?

Co Jensen Wong Julie's gonna be talked to him shortly along with her own Dan Howley.

What are some of the ripple effects you see for the market?

Yeah, I can't wait for that interview.

Actually, I'm super excited.

He's got to be feeling good about this, uh this report.

That'll be a good one, but I think that this is going to drive the NASDAQ up tomorrow.

Um I, I think in the near term we're, we're gonna get some continued momentum off of these NVIDIA earnings.

It's going to be good for the mag seven, good for the breath of the NASDAQ.

And, and in general, you know, a couple like in 2022 when all the tech stocks were crashing and Apple did well that, that was kind of the um tide that lifted all boats, right?

And last year and you know, it's been Tesla throughout time and this is just the year for for and the video does.

Well, people feel good about the market this year and, you know, we'll see what happens next year.

But this is, this, is that trade this year.

So short term, we get some positive momentum off of this.

I think it's funny because it was a trade last year too.

Sylvia.

Yeah, I guess it was a trade last year too.

But I think that, I think the hype, like it's like the chat, the day that they announced the chat GP T thing in all of last year is when this thing really started to go parabolic.

I think we got to leave it there.

Sylvia.

Thank you so much for that instant reaction.

Really appreciate it.

Well, that'll do it for today's market domination over time.

Be sure to come back tomorrow at 3 p.m. Eastern for all of your coverage leading up to and after the closing bell, our new show asking for a trend.

I've got you covered for the next half hour dive into all the trending stories following in the video's latest earnings report.

Stay tuned, asking for a trend coming up on the other side.