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- 👉 Apple's Ready for "Glowtime"
👉 Apple's Ready for "Glowtime"
Adobe, Microsoft, Kroger
Welcome to your new week.
Major congrats to all of the Dell Technologies (DELL) and Palantir (PLTR) investors as they will be joining the S&P 500 — replacing American Airlines (AAL) and Etsy (ETSY).
As we turn the page to this week — keep in mind that the first Presidential debate between former President Trump and VP Harris is on Tuesday night (9/10).
While that may move the markets, let’s dive into everything else that could create headlines.
Key Earnings Announcements:
Earnings season is still in-stride with Academy Sports & Outdoors, Adobe, GameStop, Kroger, and Oracle.
Source: Earnings Whispers
Monday (9/9): Abivax, Mission, Oracle, Rubrik, Skillsoft
Tuesday (9/10): Academy Sports & Outdoors, Cognyte, Dave & Busters, GameStop, Petco
Wednesday (9/11): Manchester United, Vera Bradley
Thursday (9/12): Adobe, Kroger, Lovesac, RH
Friday (9/13): N/A
What We’re Watching:
1) Adobe (ADBE)
Source: Adobe Investor Relations
Adobe (-5.6% YTD) will release its Q3 FY24 earnings on Thursday, with its MAX Creativity Conference and Analyst Day following on October 14-16. Key areas to watch include Adobe's growth potential from generative AI (genAI) and its positioning against competitors like Canva and Figma.
Canva is emerging as a strong competitor, but it's unlikely to challenge Adobe’s dominance among professional creatives in the near term. Meanwhile, Adobe Express is gaining ground in the lower-tier market – focusing on innovation to compete with Canva's growing market share.
Adobe (ADBE) Stock Performance, 5-Year Chart, Source: Seeking Alpha
2) Kroger (KR)
Source: Kroger Investor Relations
On Thursday — Kroger (+14.3% YTD) posts its quarterly earnings. Kroger’s proposed $25 billion merger with Albertsons (ACI) could significantly expand its presence and scale — transforming the U.S. grocery market.
With Albertsons' strong foothold in the West & Northeast, Kroger would enhance its reach and serve millions of new customers. The deal is expected to generate around $1 billion in “annual run-rate synergies” within four years by streamlining supply chains and operations, potentially offering customers lower prices and better service.
The merger is crucial for both companies to compete against giants like Walmart (WMT), Amazon (AMZN), and Costco (COST) — which dominate the industry with vast resources and consistent innovation. While the Federal Trade Commission (FTC) is currently reviewing the deal, investors are closely watching whether this merger will create a long-term upward trend for Kroger or if market dynamics will prompt a decline.
Kroger (KR) Stock Performance, 5-Year Chart, Source: Seeking Alpha
Investor Events / Global Affairs
Big events from Apple, Goldman Sachs, AND Microsoft.
Apple (AAPL) “It’s Glowtime” Event
Source: Apple.com
At Apple's "It's Glowtime" event on September 9, 2024, expect the new iPhone 16 models, featuring Action and Capture Buttons, a more power-efficient OLED display, and camera improvements for low-light and spatial video.
The iPhone 16 Pro models may include a 48MP Ultra-Wide lens and 4K video recording at up to 120 frames per second, along with a larger display size and enhanced AI-powered features. Apple Watch Series 10 will debut with a thinner design, improved health sensors, and better battery life. New AirPods 4 models will also launch, offering Active Noise Cancellation and a USB-C charging port.
Apple (AAPL) Stock Performance, 5-Year Chart, Source: Seeking Alpha
Additional surprises may be revealed, but products like the iPad mini 7 or AirPods Max updates are unlikely to appear.
Goldman Sachs Communacopia & Technology Conference 2024
Source: Goldman Sachs
The Goldman Sachs Communacopia & Technology Conference 2024 is an annual event organized by Goldman Sachs that brings together leaders from the communications, media, and technology sectors. It serves as a platform for companies to present their latest innovations, financial updates, and growth strategies, while investors and industry analysts gain insights into trends shaping these industries.
Goldman Sachs (GS) Stock Performance, 5-Year Chart, Source: Seeking Alpha
Participants include: Applied Materials (AMAT), AT&T (T), ChargePoint (CHPT), DoorDash (DASH), Etsy (ETSY), Hasbro (HAS), Instacart (CART), Lyft (LYFT), Microsoft (MSFT), Nvidia (NVDA), Opendoor Technologies (OPEN), Robinhood Markets (HOOD), Salesforce (CRM), Uber Technologies (UBER), and Warner Bros. Discovery (WBD).
Microsoft (MSFT) Cybersecurity Conference
Microsoft is hosting the Windows Endpoint Security Ecosystem Summit at its Redmond, Washington campus. The event will gather top security companies and government representatives to discuss vulnerabilities that emerged following the CrowdStrike (CRWD) July software update debacle.
Microsoft (MSFT) Stock Performance, 5-Year Chart, Source: Seeking Alpha
The press and public are apparently not invited, creating some pushback about Microsoft's commitment to transparency. It’s tough to tell if this will end up being a market-moving event or if we’ll simply receive a press release update after it finishes up.
Major Economic Events
Updates on inflation for consumers, inflation for producers, and consumer sentiment are all coming this week.
The CME FedWatch tool currently shows a 71% chance of a 25 basis point interest rate cut this month.
Monday (9/9): Consumer Credit, Wholesale Inventories
Tuesday (9/10): Fed Vice Chair for Supervision Michael Barr on Bank Reform, NFIB Optimism Index
Wednesday (9/11): Consumer Price Index (CPI), Core CPI
Thursday (9/12): Initial Jobless Claims, Producer Price Index (PPI), Core PPI, Monthly US Federal Budget
Friday (9/13): Consumer Sentiment (Final), Import Price Index
What We’re Watching:
1) Consumer Price Index (CPI)
Source: CNBC
In July 2024, the U.S. CPI rose by +0.2% month-over-month, recovering from a -0.1% decline in June and meeting market expectations. Shelter prices, up +0.4%, contributed to nearly 90% of the increase.
According to MarketWatch, the median forecast for this week’s release is a +2.6% year-over-year CPI increase and +3.2% Core CPI increase.
2) Consumer Sentiment
Source: Trading Economics
The University of Michigan's consumer sentiment for August 2024 was revised up to 67.9 from 67.8 but fell short of the 68 expected.
The current conditions index improved to 61.3 from 60.9 – while the expectations index remained at 72.1. Year-ahead inflation expectations were revised down to 2.8% from 2.9% — with the five-year outlook steady at 3%.
According to MarketWatch, the median forecast for this week’s consumer sentiment update is a slight improvement from 67.9 to 68.5.
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