U.S. stocks eye Nvidia, housing and retail catalysts in Tuesday trade

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U.S. stocks eye catalysts Tuesday

Highlights

Nvidia's Wednesday earnings are a central focus as its shares extend a seven-session decline and 90% of revenue now comes from data centers.
Expedia stock is up 30% in one month and 58% in three months, while Amgen has risen 15% in August and 31% over three months.
U.S. new home sales data at 10 a.m. ET may impact builders like Lennar, down 38% from last September's high but up 7% in August.

Data center focus and key company updates

As reported by CNBC, investor attention centers on data center spending trends as Nvidia approaches its earnings release on Wednesday and extends a seven-session decline tied to concerns about a slowdown in that market.

Jim Cramer says he remains constructive on selected names with data center exposure, including GE Vernova and Micron Technology. He points to GE Vernova's rise from $639.77 in January to $942.10 at Monday's close, while Micron, despite a nearly 6% drop on Monday, remains up about 220% so far this year and still looks attractively valued in his view.

Cramer says it makes sense to trim some positions linked to data centers, but he still views the segment as a growth area that warrants close attention. According to data provider Quartr, 90% of Nvidia's revenue is now tied to the data center industry, underscoring why its upcoming report is a central market event.

Other stocks on the watchlist include Expedia and Amgen, both of which hit new highs. Expedia shares are up 30% in a month and 58% in three months, while Amgen, a Dow component, is up 15% so far in August and 31% over three months.

Housing and earnings set the broader market tone

The next major macro reading arrives at 10 a.m. ET with the U.S. new home sales report, a data point that could move homebuilder shares already showing mixed momentum. Toll Brothers is down 12% from its February high but up nearly 10% over three months, while Hovnanian is down 22% from its September 2025 peak and still up around 20% over the same recent period.

Lennar is down 38% from its high in September last year, though the stock is up 7% so far in August. Pulte is off 10% from its February high but has rebounded 20% from its May low, suggesting investors continue to reassess the housing outlook as fresh sales data approaches.

On the corporate calendar, Dick's Sporting Goods and Bank of Montreal both report on CNBC's 'Squawk Box' on Tuesday morning. Dick's shares are down 22% in three months after falling from their June 22 high, while Bank of Montreal shares are up 7% since the last report but sit 8% below the high reached last week.

In our earlier coverage of the AI-driven data center buildout, we explained that demand for memory and compute remains strong, but political and permitting pushback is increasingly threatening how quickly new projects can actually get built. We also highlighted Micron’s major U.S. expansion plans and noted that delays and local opposition were weighing on sentiment toward several data center-linked stocks, even without clear evidence of order cancellations.

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