Nvidia Outlook, Travel Stocks, Adobe Earnings: 3 Things to Watch

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Investing.com – Stocks rose on Tuesday, as investors absorbed words from Federal Reserve officials that indicated a more aggressive tightening was in the works as the central bank looks to conquer inflation.

All three indexes were higher heading into the close, with tech stocks helping the rebound. They closed down on Monday after Fed Chair Jerome Powell surprised markets by saying a bigger half-point increase in rates was in the cards. The Fed normally raises rates in quarter-point increments, as it did last week for the first time since the pandemic erupted.

The Fed is trying to quash inflation as Russia’s war with Ukraine threatens to exacerbate high energy and commodity prices and rising prices of food and other household essentials. 

President Joe Biden was set to travel to Brussels on Wednesday to meet with allies of the North Atlantic Treaty Organization and European Union to discuss the West’s response to Russia, which continues to bomb civilian targets in Ukraine.

More sanctions will likely be announced at the NATO summit, the White House said Tuesday.

It’s a fairly light week for data and earnings. Here are three things that could affect markets tomorrow.

1. Nvidia outlook

On Tuesday, NVIDIA Corporation (NASDAQ:NVDA) made numerous announcements surrounding its NVIDIA DRIVE Orin autonomous vehicle computer. 

It has started production of the Orin, while also showcasing new automakers adopting the NVIDIA DRIVE platform. The company also announced its automotive pipeline has increased to over $11 billion over the next six years. Analysts will be watching to see how the chipmaker rebounds from a global shortage of chips that affected production in the auto industry.

2. Travel stocks in focus

Just when people thought it was safe to travel again, Europe and Asia are seeing another wave of Covid-19 infections and there are concerns it will spread to the U.S., where many locations have only recently ended most of their restrictions and mandates. This doesn’t bode well for travel stocks. Carnival Corporation (NYSE:CCL) already missed estimates for both earnings per share and revenue. The shares ended flat for the day, but investors will likely be watching the space closely.

3. Adobe earnings

Adobe (NASDAQ:ADBE) beat analysts’ forecasts with earnings per share of $3.37 on revenue of $4.26 billion, but the shares dropped and will likely continue to be a focus on Wednesday. Adobe’s subscription revenue came in at $3.96 billion. However, product revenue was $145 million, down 6.5% compared to the previous year.

Looking ahead, the company is targeting revenue of $4.34 billion in the second quarter, with adjusted earnings per share of $3.30.

-Reuters and Investing.com staff contributed to this report.