Nvidia Joins DJIA, Intel Slips Out as Markets Prep for Election, Fed Move

Financial markets are poised for a week filled with potential shakeups as a significant change is occurring in the Dow Jones Industrial Average with Nvidia (NVDA) set to replace Intel (INTC) before trading opens on Friday (November 8). Sherwin Williams' stock (SHW) is another new addition, with Dow (DOW) being replaced.

As Nvidia steps into the Dow, marking a shift towards greater emphasis on next-generation computing, Berkshire Hathaway's latest financial report has reflected a slight downtick in economic confidence. The conglomerate, helmed by Warren Buffett, experienced a 6% decrease in operating profit alongside a slight drop in revenue, with cash holdings escalating to $325.21 billion.

Focusing on the immediate week ahead, a cocktail of prominent companies, including Vistra, Constellation Energy, Arista Networks, Palantir Technologies, and Arm, will disclose their earnings.

The US Presidential election will be on the horizon's this week, with Tuesday starting the release of results.

Anticipation is mounting for the Federal Reserve's decision expected on Thursday, with a rate cut being the focal point of speculation. Market sectors have already been jittery, evidenced by the Energy Select SPDR ETF (XLE) slipping by 2% last week, and SPDR S&P Homebuilders ETF (XHB) retracting 1.7%. These movements reflect a broader narrative of recalibration as various sectors brace for the Fed's announcement.

In other news, the electric vehicle space is heating up as China's EV giant BYD reported higher revenue than Tesla for the first time in Q3. This financial reshuffling suggests BYD may dethrone Tesla in the BEV supremacy contest in the forthcoming quarter.

A very busy week with a lot to watch. The Dow's reshuffle has not historically driven huge shifts in the standing's of a stock, but the immediate impact of pre-market moves for the new additions certainly seems to have given an impetus of bullish sentiment.