by Daniel Shvartsman
Investing.com – September markets off to a strong start, S&P
Here’s what you need to know about the week ahead in the financial markets:
1. CPI and PPI Reports
A series of consumer price index (CPI) reports for August will be released this week. India released CPI report on Monday , Germany , Spain , US all report on Tuesday, UK reports on Wednesday, France on Thursday, and Italy and the Eurozone overall on Friday.
Producer Price Index (PPI) report will also be released in Japan , Switzerland *) (Tuesday), UK (Wednesday) and US
US inflation is expected to be Slowing, month-on-month core CPI is expected to come in at 0.3%, matching last month’s figure; this would mark the lowest back-to-back readings since last fall. Headline CPI is expected to be -0.1% as lower gasoline prices continue to reduce inflationary pressures. Core PPI is expected to be 0.3%, up from 0.2% in the previous month, while Headline PPI is also expected to be -0.1 %.
These expectations vary widely in Europe; the UK core CPI is expected to increase by a substantial 0.8% m/m , while Headline CPI is expected to rise by another 0.6%. Core CPI data
for the euro area is expected to rise by 0.5%, up from a revised 0.1% in the previous month. The same is expected for the headline CPI as energy prices are still looming as the seasons change.The European Central Bank has taken the latest move, raising interest rates by 75 basis points last week. If not raising interest rates, the Fed is expected to hold on to at least 15 basis points of interest rate hikes , the inflation report is not expected to shake it, but there is no doubt that Chairman Jerome Powell would welcome signs of inflation at least falling.
The Bank of England meeting was scheduled for this week but was postponed due to the death of Queen Elizabeth II, after the new Prime Minister Liz Truss was in power and has issued Major Energy Program
. Its impact on markets is one of the factors the BoE has to weigh. It will also get a employment report as additional data to put in the mix.
2. A PAIR OF MAJOR EARNINGS REPORTS
While the second-quarter earnings season has just ended, there are two major software companies reporting results worth watching.
Software giant Oracle (NYSE: ORCL) reported after the close Monday, expecting first-quarter earnings growth of 4%, including the latest Acquired by Cerner (NASDAQ: CERN ). Oracle recently received price target upgrades from global equity analysts in light of the Cerner deal, and
Guggenheim has a Buy rating
but, like many in the software and tech industries, has been adjusting to a more difficult macro environment, as the company has been reported Layoffs have started . So earnings reports and conference calls may be enlightening.
Adobe Systems (NASDAQ: ADBE ) reported Thursday after the close. The company expects earnings growth of 7.3% and revenue growth of 15.6%. Jefferies Analysts Warning The company has yet to adjust guidance for macro headwinds, only foreign exchange effects, so there could be more room for disappointment. The company was disappointed by its previous report , but the stock price has since recovered. Adobe’s report as one of the first software companies to successfully transition to a SaaS (software-as-a-service) model serves as a useful bellwether.
3. Corebridge Financial IPO
92 volatile trading has fallen victim to the IPO market, and most IPOs that go public are of the sparsely traded, relatively unknown type. Corebridge Financial was spun off from AIG (NYSE: AIG), but will enter the market through an IPO rather than a direct offering to AIG shareholders. It focuses on retirement solutions and insurance plans. The company will start trading on Thursday and is looking to raise $1. 68-1. 75B before considering fees or underwriter stock purchases, with $’s valuation range compared to .6-$13.6B.
Read more about the IPO:7 What to know about the Corebridge Financial IPO
4. Big investment conference and Starbucks Investor Day
With summer coming to an end and earnings season quietest At times, many companies are on the road to meeting with investors. Investor meetings and presentations often contain strategy updates and announcements, sell-side analysts and shifts in market thinking, and even deals.
Some notable conferences or analyst days this week:
Goldman Sachs Communicopia + technology conference, including the following companies: MongoDB (NASDAQ: MDB), Warner Bros Discovery (NASDAQ: WBD), Dynatrace (NYSE: DT), Dell Technologies (NYSE: DELL), Airbnb Inc (NASDAQ: ABNB ), SNOWFLAKE (NYSE: SNOW ), ServiceNow (NYSE: NOW), T-Mobile US Inc (NASDAQ: TMUS), Pinterest (NYSE: PINS) and Visa (NYSE: V)
Morgan Stanleyth 75 Annual Global Healthcare Conference by and other companies to participate in Moderna (NASDAQ: MRNA ),
Pfizer (NYSE: PFE), Quidel (NASDAQ:QDEL), Merck & Co. (NYSE: MRK), Bausch & Lomb COMPANY (NYSE: BLCO), AbbVie Corporation(NYSE:ABBV), Eli Lilly and Company (NYSE: LLY), Insulin (NASDAQ: PODD) and Quest Diagnostics (NYSE: DGX).
With summer coming to an end and earnings season quietest At times, many companies are on the road to meeting with investors. Investor meetings and presentations often contain strategy updates and announcements, sell-side analysts and shifts in market thinking, and even deals.
Some notable conferences or analyst days this week:
Goldman Sachs Communicopia + technology conference, including the following companies: MongoDB (NASDAQ: MDB), Warner Bros Discovery (NASDAQ: WBD), Dynatrace (NYSE: DT), Dell Technologies (NYSE: DELL), Airbnb Inc (NASDAQ: ABNB ), SNOWFLAKE (NYSE: SNOW ), ServiceNow (NYSE: NOW), T-Mobile US Inc (NASDAQ: TMUS), Pinterest (NYSE: PINS) and Visa (NYSE: V)
Morgan Stanleyth 75 Annual Global Healthcare Conference by and other companies to participate in Moderna (NASDAQ: MRNA ),
Barclays) Global Financial Services Conference, Cboe Global Markets Inc (NYSE: CBOE), US Bancorp (NYSE: USB ), Huntington Bancshares (NASDAQ: HBAN), American Express (NYSE: AXP), JPMorgan (NYSE: JPM), Allstate (NYSE: ALL) and Robinhood (NASDAQ: HOOD) etc.
On the analyst day side, Workday (NASDAQ: WDAY ), Workiva (NYSE: WK), Corteva (NYSE: CTVA) and Starbucks (NASDAQ: SBUX ) There are both investor or analyst days on Tuesday, and Starbucks in particular is under scrutiny because of the recent appointment of a new CEO.
5. Russo-Ukrainian developments and aftershocks
Ukraine’s surprise recapture of the city of Izium in the northeast of the country has caught the attention of observers around the world as a potential turning point in the war . Ukraine is also attacking Russian positions near Kherson in the south of the country, which would mark a different tone if they can maintain the offensive on two fronts and capture and control territory.
With the closure of the Nord Stream 1 gas pipeline, Russia continues to increase economic pressure on Europe. While the military landscape is changing and uncertain, it’s not hard to imagine that Russia’s setback will only increase Russia’s willingness to use its economic leverage over Ukraine and its backers in predictable and unpredictable ways, which could give European countries put more pressure on the problem. Their energy conditions ahead of winter, which makes the inflation report mentioned at the top of the article all the more relevant.