Breakfast on Wall Street: The Week Ahead

It’s a big test this week to see what has the most influence on the markets. Is it the Fed or AI? The Federal Reserve’s June decisions are coming, along with its updated projections for the direction of interest rates, inflation and economic growth.

The Fed’s statement and Chairman Jerome Powell’s press conference are expected on Wednesday. While the market believes it is almost certain that rates will not move, the dot chart will be the main focus coming from strong May jobs numbers. Markets are now pricing in only a quarter point decline in 2024, with the chance of a quarter point decline in September falling to 50/50.

On Wednesday, before the bell, the market receives the May CPI figures. Economists forecast a monthly increase of 0.3% in the core inflation rate and a decline in the annual rate to +3.5% from +3.6%. A significantly warmer or lower reading could lead to volatile repositioning, particularly in bonds, ahead of the Fed’s afternoon release.

But on the AI ​​front, the focus will be squarely on Apple’s (AAPL) WWDC event. Apple kicks off its annual developers conference on Monday with a keynote that is perhaps the tech giant’s most anticipated keynote since the iPhone was introduced nearly 17 years ago. Analysts say this is a pivotal moment as the company begins a “new AI-driven chapter.”

And Tesla (TSLA) shareholders will meet Thursday at the company’s annual meeting to vote on twelve proposals. The proposals include the high-profile proposal to ratify Elon Musk’s compensation as part of the CEO pay package that was previously approved at a special meeting in 2018.

The earnings calendar for next week includes reports from Oracle (ORCL), Broadcom (AVGO), and Adobe (ADBE). ZEEKR Intelligent (ZK) will also release its first earnings report as a publicly traded company.

Spotlight on results: Monday June 10 – Yext (YEXT), Calavo Growers (CVGW) and FuelCell Energy (FCEL). View the full earnings schedule.

Spotlight on results: Tuesday June 11 – Oracle (ORCL), Casey’s General Stores (CASY), ZEEKR (ZK) and Rubrik (RBRK). View the full earnings schedule.

Spotlight on results: Wednesday June 12 – Broadcom (AVGO), Dave & Buster’s Entertainment (PLAY) and Oxford Industries (OXM). View the full earnings schedule.

Spotlight on results: Thursday June 13 – Signet Jewelers (SIG), Adobe (ADBE) and RH (RH). View the full earnings schedule.

Volatility monitoring: Options trading volume increased significantly on Nvidia (NVDA) before shares traded at their split-adjusted price on Monday. The most overbought stocks based on their 14-day relative strength index include MicroAlgo (MLGO), Brinker (EAT), KNOT Offshore (KNOP). The most oversold stocks based on their 14-day relative strength index include MongoDB (MDB), DLocal (DLO), and Nerdy (NRDY). Short interest is still very high in SunPower (SPWR) and The Children’s Place (PLCE) heading into next week’s action.

IPO Monitoring: Tempus AI (TEM) is expected to price its IPO and begin trading next week. The company focuses on the use of AI in healthcare, providing data and analytics tools for precision medicine. Tempus AI is offering 11.1 million shares in an expected range of $35 to $37 per share. Commercial biopharmaceutical company Telix Pharmaceuticals (TLX) will also go public next week. Post-IPO quiet periods expire on Armlogi Holding (BTOC), JIADE (JDZG), Raytech Holding (RAY), and Super Hi (HDL) to allow analysts to issue ratings.

Investor events: The upcoming week’s events calendar includes more than just the attention-grabbing Apple and Tesla events. Amazon (AMZN) will hold its three-day AWS re:Inforce conference. AWS re:Inforce 2024 will cover the following areas: data protection, identity and access management, threat detection and incident response, network and infrastructure security, generative AI, governance, risk and compliance, and application security. The conference is a way to explore and gain skills in AWS security services. Qorvo (NASDAQ: QRVO), Stellantis (STLA), Harmonic (HLIT) and Ryder System (NYSE:R) also host key investor events.

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