Post-Election Risks? What Chip Companies and a Railroad Could Signal Ahead

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CSX Corporation,NXP Semiconductors NV,Dow Jones Transportation

Stocks Analysis by Christine Short covering: NVIDIA Corporation, CSX Corporation, NXP Semiconductors NV, Dow Jones Transportation. Read Christine Short's latest article on Investing.com

Analyst Days on the docket could shed new light on economic risks and some potential tailwinds heading into 2025each hold events that may shed light on key cyclical areas of the global economy.

As with so many indicators, however, there’s nuance here. While the services sector is on the mend, the manufacturing sector has its struggles, at least according to the latest set of PMI numbers published by the Institute for Supply Management and S&P Global. Europe’s biggest technology company ASML plunged following the early release of its Q3 report on October 15. Disappointing bookings figures drove home the point that the semis space can go through significant macro-related swings. For NXP, its earnings report confirmed for Monday, November 4 AMC will be closely watched. ORATS reports a consensus EPS forecast of $3.43We’ll get back to the chips theme in a minute, but let’s jump the tracks to CSX.

Geopolitical tensions and uncertainty about what the new year might bring were said to be the driver of the tepid forecast. Export restrictions on China were specifically cited on the earnings call by Roger Dassen, ASML’s CEO. It was a reminder that bullish AI sentiment may be long-lasting, but other global economic forces can still assert themselves.

 

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