Wall Street Breakfast: The Week Ahead

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

The Fed statement and Chairman Jerome Powell’s press conference are due on Wednesday. With the market pricing in a near certainty of no move on rates, the dot plot will be the main focus coming off the strong May jobs figures. The markets are now pricing in only one quarter-point cut in 2024, with the odds of a September quarter-point cut falling to 50/50.

Before the bell on Wednesday, the market gets the May CPI figures. Economists forecast a 0.3% month-over-month increase in the core inflation rate and a drop in the annual rate to +3.5% from +3.6%. A significantly hotter or cooler number could see some volatile repositioning, especially in bonds, ahead of the afternoon Fed release.

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

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

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

Earnings spotlight: Monday, June 10 – Yext (YEXT), Calavo Growers (CVGW), and FuelCell Energy (FCEL). See the full earnings calendar.

Earnings spotlight: Tuesday, June 11 – Oracle (ORCL), Casey’s General Stores (CASY), ZEEKR (ZK), and Rubrik (RBRK). See the full earnings calendar.

Earnings spotlight: Wednesday, June 12 – Broadcom (AVGO), Dave & Buster’s Entertainment (PLAY), and Oxford Industries (OXM). See the full earnings calendar.

Earnings spotlight: Thursday, June 13 – Signet Jewelers (SIG), Adobe (ADBE), and RH (RH). See the full earnings calendar.

Volatility watch: Options trading volume has moved much higher on Nvidia (NVDA) ahead of shares trading at their split-adjusted price on Monday. The most overbought stocks per their 14-day relative strength index include MicroAlgo (MLGO), Brinker (EAT), KNOT Offshore (KNOP). The most oversold stocks per their 14-day Relative Strength Index include MongoDB (MDB), DLocal (DLO), and Nerdy (NRDY). Short interest is still sky-high on SunPower (SPWR) and The Children’s Place (PLCE) heading into next week’s action.

IPO watch: Tempus AI (TEM) is expected to price its IPO and start trading next week. The company is focused on the use of AI in healthcare, providing data and analytics tools for precision medicine. Tempus AI is offering 11.1M shares in an expected range of $35 to $37 per share. Commercial-stage biopharma firm Telix Pharmaceuticals (TLX) is also going public next week. The post-IPO quiet periods expire on Armlogi Holding (BTOC), JIADE (JDZG), Raytech Holding (RAY), and Super Hi (HDL) to free up analysts to post ratings.

Investor events: The event calendar in the week ahead 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 tracks: 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 competence in AWS security services. Qorvo (NASDAQ:QRVO), Stellantis (STLA), Harmonic (HLIT), and Ryder System (NYSE:R) also have key investor events scheduled.