Nvidia, Retail Earnings on Watch

Nvidia earnings are on deck at the same time that retail earnings continue to hit the tape. Here’s what The Daily Breakdown is watching.

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What’s Happening?

Stocks continue to wobble, while crypto is trying to find its footing as bonds tumble and yields push higher. The 30-year Treasury yield hit 5.2%, its highest level since 2007, while the 10-year yield climbed to 4.7%, a one-year high and within striking distance of 5%.

Why does this matter? Bonds may not be the most exciting topic, but higher yields mean higher borrowing costs. That’s a headwind for consumers, businesses, and investors — and has triggered a bit of “risk-off” reaction across markets as of late. 

👀 S&P 500 Spotlight

On the bright side, earnings continue to show progress. Earlier this week, Home Depot pointed to a solid consumer, even as some shoppers delay larger home projects due in part to elevated interest rates and borrowing costs. This morning, TJX Companies and Target also beat earnings and revenue expectations, reinforcing the view that consumers remain resilient.

Next up: Walmart tomorrow morning.

⚡ Crypto Corner

Crypto is gaining some momentum this morning, led by Bitcoin stabilizing near its 50-day moving average. Recent leaders like Ondo and Near Protocol are up more than 4%, though the rally remains selective, with names like Bitcoin Cash still under pressure.

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The Setup — Nvidia

Nvidia will report earnings tonight, and while the investment community largely expects a strong result, it will be the reaction to those results (and the outlook) that matter most. 

For months, Nvidia was stuck between $170 and $200, with rallies toward the latter ending just as quickly as they started. However, the rally that started in early April has led NVDA to new highs around $240. Should shares pull back after earnings, bulls will want to see the stock stay above former resistance — or above $200. If Nvidia rallies, investors will look to see if the stock can sustain above $240. 

Options

Investors who are bullish could consider calls or call spreads as one way to speculate on further upside, while bearish investors could consider puts or put spreads to speculate on a further move to the downside. For options traders, it may be advantageous to have adequate time until the option’s expiration. 

To learn more about options, consider visiting the eToro Academy.

What Wall Street’s Watching

CAVAShares of Cava are rising this morning, up more than 7% after the company reported solid quarterly results. Earnings, revenue, and same-store sales growth beat analysts’ expectations, while management raised its full-year outlook. After a tough 2025, Cava stock is up 33% this year coming into today’s session. Dig into the fundamentals for CAVA.

ETHBulls are looking for some relief from Ethereum, which is up almost 1% on the day but has struggled overall. ETH has declined for five straight sessions and has closed lower in eight of the last nine sessions. Over the last month, Bitcoin has risen more than 4%, while Ethereum has fallen more than 6%. The action has also taken a toll on ETHA, which remains the largest ETF by assets, while also supporting options trading. Check out the charts for ETH.

Disclaimer:

Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.