Here is a comprehensive report on the top stock market news, stocks to watch, and expected market movement for today, May 21:

Stock Market Report: May 21, 2024

Top Stock Market News

Nvidia Earnings in Focus as AI Boom Continues

Nvidia Corp. (NVDA) is set to report its latest quarterly earnings after the market close on Wednesday. The chipmaker's results are highly anticipated as investors look for signs of how strong the artificial intelligence boom has been for the company's products. Analysts expect Nvidia to report revenue of $6.52 billion and earnings per share of $0.92, according to data from Refinitiv. However, some analysts have raised their estimates in recent weeks due to high demand for AI chips. Nvidia's stock has surged over 90% this year amid the AI frenzy.

U.S. Housing Data to Provide Insight on Economy

The U.S. Census Bureau will release data on new home sales for April at 10 a.m. ET on Tuesday. Economists surveyed by The Wall Street Journal expect sales to decline 0.8% from the previous month to a seasonally adjusted annual rate of 640,000 units. The housing market has been hit hard by rising mortgage rates, so the data will be closely watched for signs of whether the industry is starting to stabilize or continues to struggle.

Fed Minutes Could Offer Rate Hike Clues

The Federal Reserve will release the minutes from its May 2-3 policy meeting on Wednesday at 2 p.m. ET. The minutes will provide more details on the central bank's thinking behind raising interest rates by a quarter percentage point at that meeting. Investors will parse the report for clues about the Fed's plans for future rate hikes as it continues battling inflation.

Top Stocks to Watch

Palo Alto Networks (PANW)

Cybersecurity firm Palo Alto Networks is scheduled to report fiscal third-quarter results after the market close on Thursday. The company has been a major beneficiary of companies and governments increasing their spending on cybersecurity products and services. Analysts expect Palo Alto to report adjusted earnings of $1.29 per share on revenue of $1.64 billion, according to FactSet.

The ODP Corp (ODP)

Office supply retailer ODP Corp, parent of Office Depot and OfficeMax, will report first-quarter results before the market open on Wednesday. The company is expected to earn an adjusted $1.14 per share on revenue of $2.59 billion, according to analysts polled by Refinitiv. ODP's results could provide insight into how businesses are managing expenses amid an economic slowdown.

Dollar Tree (DLTR)

Discount retailer Dollar Tree will release first-quarter financial results before the market open on Thursday. Wall Street expects the company to report earnings of $1.48 per share on revenue of $7.16 billion, based on Refinitiv estimates. Like many retailers, Dollar Tree has been grappling with higher costs, so investors will look for any commentary on pricing strategy.

Stock Market Expected Movement

U.S. stock indexes are expected to open slightly higher on Monday, following last week's rally that pushed the S&P 500 and Nasdaq to fresh record highs. Futures for the S&P 500 were up 0.3%, while Dow Jones Industrial Average futures gained 0.2% and Nasdaq 100 futures rose 0.4% as of 8:45 a.m. ET.

The positive start to the week comes ahead of a busy few days of economic data and corporate earnings that could sway market sentiment. While major U.S. indexes remain near all-time highs, concerns about a potential economic slowdown and the prospect of further Federal Reserve interest rate hikes have added some volatility to markets recently.

"We expect the market to remain range-bound this week as investors digest the latest housing and manufacturing data along with the Fed minutes," said Tom Essaye, founder of Sevens Report Research. "Continued strength in economic numbers could renew fears of more aggressive Fed tightening."

That said, most market strategists expect the bull rally to remain intact, supported by signs that inflation is cooling and the economy is avoiding a severe recession. Corporate earnings have also remained relatively resilient so far.

"We believe the path of least resistance for stocks remains higher, but we could see some consolidation or modest pullback in the near-term after the recent gains," J.P. Morgan equity strategists wrote in a recent note.

Overall, the stock market seems poised for some ups and downs this week, with the major indexes potentially fluctuating based on the flow of economic reports and corporate results. Investors will be closely watching Nvidia's earnings on Wednesday for signals about AI demand.