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Welcome to your new week.
And just like that… you’ve begun the second-to-last full week of the year. These are critical days in which you should monitor markets closely and plan ahead for the beginning of 2026!
Read on for everything you should be watching this week.
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Key Earnings Announcements:
Adobe, Casey’s, Kroger, and Oracle are the biggest earnings reports of the week.
Monday (12/8): Casey’s
Tuesday (12/9): Cognyte, GameStop, Oracle
Wednesday (12/10): Chewy
Thursday (12/11): Adobe, Kroger, Lovesac
Friday (12/12): N/A
What We’re Watching:
Adobe (ADBE)
Adobe (+22.1% YTD) reports Q4 FY2025 earnings Thursday after the close, with investors focused on how well the company is converting its aggressive push into generative AI, content automation, and enterprise marketing tools into durable revenue growth. Adobe remains a dominant force in creative software, but the market is watching closely to see whether new AI-native features meaningfully accelerate Creative Cloud and Document Cloud adoption.
Last quarter, Adobe delivered $5.2 billion in revenue (+11% YoY) and $4.60 in adjusted EPS (+15% YoY), both ahead of expectations. Creative Cloud grew +12%, fueled by strong demand for Firefly-powered workflows and rising engagement across Photoshop, Premiere, and Illustrator. Digital Experience revenue rose +10%, though management flagged longer deal cycles among large enterprise clients.
Heading into this print, I’ll be watching whether AI monetization shows up in net-new Digital Media ARR, how enterprise bookings trend in Experience Cloud, and whether management updates FY2026 guidance amid intensifying competition from both traditional peers and AI-native design tools. Commentary on pricing, user growth, and early traction from AI assistants will be key drivers for sentiment.
“We’re building a future where every creator – from hobbyists to global enterprises – can work with infinitely more speed, scale, and imagination.”
Adobe Inc. (ADBE) Stock Performance, 5-Year Chart, Seeking Alpha
Oracle (ORCL)
Oracle (+30.5% YTD) reports Q2 FY2025 earnings Monday after the close, with investors focused squarely on whether the company’s massive AI-infrastructure buildout is translating into meaningful top-line acceleration. Oracle has leaned aggressively into AI cloud workloads, signing multibillion-dollar capacity deals – but its heavy capex, rising debt load, and slower legacy-software growth have raised questions about near-term margin pressure.
Last quarter, Oracle posted $13.3 billion in revenue (+7% YoY) and $1.39 in adjusted EPS (+9% YoY), slightly ahead of expectations. Cloud revenue — including IaaS and SaaS — climbed +20% YoY, with management highlighting strong demand for OCI’s GPU clusters and partnerships with companies like Nvidia, Cohere, and OpenAI. However, operating margin compressed modestly due to elevated infrastructure spending and integration costs tied to Cerner.
Heading into this quarter, I’ll be watching whether Oracle can show accelerating cloud-infrastructure growth, updated visibility on its AI-data center buildout, and clearer progress on improving Cerner’s profitability. Commentary on debt financing, capex cadence, and how quickly new GPU clusters are sold out will be critical given recent scrutiny of Oracle’s credit metrics.
“We’re expanding capacity as fast as we can build it – demand for our AI infrastructure continues to dramatically exceed supply.”
Oracle Corporation (ORCL) Stock Performance, 5-Year Chart, Seeking Alpha
Investor Events / Global Affairs:
Google will spotlight new XR Platform capabilities in Android Show and IBM is in advanced talks to acquire confluent in $11B AI data deal.
Google (GOOG) to Host the Android Show | XR Edition
Source: Google
Google will host The Android Show | XR Edition, a 30-minute livestream dedicated to the company’s expanding Android XR ecosystem. The event will highlight new capabilities across glasses, headsets, and emerging form factors, with a strong focus on Gemini-powered immersive experiences.
Positioned as Google’s marquee XR update following Samsung’s commercial launch of the Galaxy XR headset, the showcase is expected to outline how Android plans to anchor the next wave of spatial computing, multimodal AI, and mixed-reality applications.
Google (GOOG) Stock Performance, 1-Year Chart, Seeking Alpha
“We’re building Android XR to bring powerful AI into the real world – across every device and every experience.”
IBM in Advanced Talks to Acquire Confluent
Source: Reuters
IBM is in advanced talks to acquire Confluent for about $11 billion, in what would be its largest deal in years and a major step in its strategy to strengthen AI and cloud infrastructure. A final agreement could be announced as soon as Monday, though negotiations remain fluid.
Confluent — valued near $8 billion last week — powers real-time data streaming systems that feed modern AI models across retail, tech, and financial services. Demand for its platform has accelerated as companies scale production of AI.
For IBM, the potential acquisition follows its $6.4B HashiCorp deal and broader efforts to reposition around AI, quantum computing, and hybrid cloud. The company has been restructuring its workforce and leaning more heavily on automation as it shifts toward higher-growth areas.
International Business Machine (IBM) Stock Performance, 1-Year Chart, Seeking Alpha
“AI systems run on real-time data –and platforms like Confluent are becoming foundational.”
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Major Economic Events:
Investors are expecting to see a rate cut this week, as well as more insight into the job market.
Monday (12/8): N/A
Tuesday (12/9): Job Openings, NFIB Optimism Index
Wednesday (12/10): Employment Cost Index, Fed Chair Powell Press Conference, FOMC Interest Rate Decision, Monthly U.S. Federal Budget
Thursday (12/11): Initial Jobless Claims, U.S. Trade Deficit
Friday (12/12): Cleveland Fed President Hammock Speaks, Philly Fed President Paulson Speaks, Wholesale Inventories
What We’re Watching:
FOMC Interest Rate Decision
Minutes from the Federal Reserve’s October meeting showed broad support for the 25bps rate cut, but deep disagreement over what should happen next. Several officials favored cutting rates further, others preferred to hold steady, and a few opposed easing altogether – underscoring how divided the Committee has become as inflation cools unevenly and growth moderates.
Most participants agreed that additional downward adjustments to the federal funds rate could be warranted, but many emphasized that another 25bps cut in December may not be appropriate. A number of officials said a December cut would make sense if economic data continues to soften as expected, while many others argued for keeping rates unchanged through year-end.
The Fed lowered rates by 25bps to 3.75%–4.00% at the October meeting, marking its second cut of the cycle.
Economists expect the following this week:
• Fed Funds Rate (Dec): 3.75% 4.00% vs. 4.00% - 4.25% prior expectations
• Probability of Dec Cut: ~50% vs. ~35% just weeks ago
“The debate is no longer about whether to cut – it’s about the pace. The Fed is easing, but not unanimously.”
Job Openings
U.S. job openings rose slightly to 7.23 million in August, up 19,000 from July’s revised level and right in line with expectations. The data suggests labor demand is easing gradually, not weakening sharply — a dynamic that supports the Fed’s view of a controlled labor-market cooldown.
Gains were strongest in leisure & hospitality (+97,000), health care (+81,000), and retail trade (+55,000). Openings fell in construction (-115,000) and the federal government (-61,000), reflecting softer demand in rate-sensitive and public-sector categories. Hires and separations held steady at 5.1 million, while quits remained unchanged at 3.1 million.
Economists expect the following this week:
• Job Openings: 7.23M vs. 7.21M prior
• Quits: 3.1M vs. 3.1M prior
“Labor demand is cooling, but it’s far from collapsing — the job market is rebalancing, not unraveling.”
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