Get a head start on the market by subscribing to Seeking Alpha’s Stocks to Watch, a preview of key events scheduled for next week. The newsletter keeps you up to date on the biggest stories that will make headlines, including upcoming IPOs, investor days, earnings reports and conference presentations.
The main economic data release next week will be the May CPI report on Wednesday. Economists expect a 0.3% month-on-month increase in core inflation and a year-on-year decline to +3.5% from +3.6%. Damir Tokic, an Alpha analyst, said that if the CPI comes in at the expected level, it will fit the recent trend of flat and rising inflation. “The Fed is therefore unable to begin cutting interest rates and preemptively respond to a severe economic slowdown to avoid a recession,” he warned. Later on Wednesday, the Fed will issue its policy statement and Jerome Powell will hold a press conference. While the Fed is expected to keep interest rates at their current level, the latest dot plot and economic forecasts will give investors a better idea of when the first rate cut might be triggered.
Next week’s earnings schedule 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. Apple will dominate the events calendar (Nasdaq: Apple) WWDC event, Amazon’s re:Inforce conference, and Tesla’s annual shareholder meeting.
Earnings Spotlight: Monday, June 10 -YEXT, Calavo Growers (CVGW), and Fuel Energy (FCEL). See the full earnings calendar.
Earnings Spotlight: Tuesday, June 11 – Oracle (ORCL), Casey’s General Stores (CASY), GameStop (GME), ZEEKR (ZK), and Rubrik (RBRK). See the full earnings calendar.
Earnings Spotlight: Wednesday, June 12 – Broadcom (AVGO), Dave & Buster’s Entertainment (PLAY), 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 monitoring: Options trading volume rose significantly on Nvidia (NVDA) before the stock traded at its revised price on Monday. Most overbought stocks For each 14-day RSI that includes MicroAlgo (MLGO), Brinker (He eats), marine knot (Noob). The most oversold stocks according to the 14-day RSI include MongoDB (MDB), dlocal (DLO), and nerdy (Nerdy). Short interest remains very high on SunPower (SPWR(and children’s place)Please) heading to work next week.
Underwriting Monitoring: Tempus AI (TEM) is expected to price its IPO and begin trading next week. The company focuses on the use of artificial intelligence in healthcare, providing data and analytics tools for precision medicine. Tempus AI is offering 11.1 million shares at an expected range of $35 to $37 per share. Commercial-stage biopharmaceutical company Telix Pharmaceuticals (TLX) is also going public next week. Post-IPO lulls end in Armlogi Holding (BTOC), JIADE (JDZG), Raytech Holding (RAY), and Super Hi (HDL) to free up analysts to publish ratings.
Earnings Monitoring: Companies with an earnings release date next week include Alphabet (GOOG), Nvidia (NVDA), Kohl’s (KSS), and Taiwan Semiconductor Manufacturing (TSM). The companies are expected to increase their quarterly dividends, WR Berkley (WRB) to $0.12 from $0.11, Caterpillar (CAT) to $1.40 from $1.30, and Johnson Controls (JCI) to $0.39 from $0.37. US, and Casey’s General Stores (CASY) to $0.44 from $0.43. Read some of our dividend stock picks from Seeking Alpha analysts.
FOMC Preview: The Federal Reserve’s Open Market Committee is scheduled to meet on June 11-12. While interest rate changes are expected to be announced, the Fed’s statement, the bullet chart release, and Jerome Powell’s press conference all have the potential to reset future expectations. Damir Tokic, Researcher Alpha analyst, highlighted that the June FOMC meeting will change significantly because most FOMC members have become more hawkish since the March meeting, based on public data. Bank of America expects the Federal Reserve to reconsider its forecasts in favor of slower growth and increased inflation. “We think the average Fed member will expect two rate cuts this year, down from three rate cuts in March, implying a cutting cycle starting in September.” Bank of America’s line of thinking is that a slim majority would prefer to keep the September option alive as long as inflation cooperates. At the press conference, Chairman Powell seemed confident that activity and labor markets are slowing and not overheating, but patience is needed.
Apple WWDC preview: Apple (AAPL) is expected to provide an update on its AI strategy at the company’s WWDC event in Cupertino, along with software updates for iOS 18, iPadOS 18, macOS 15, tvOS 18, watchOS 11, and visionOS 2. There are high expectations that AI will be integrated In most new software updates, Siri in particular is expected to get a strong AI boost. Although no new consumer hardware product announcements are expected, there may be some teasers about how the upcoming iPhone 16 will stand out. WWDC represents Apple’s most important event in more than a decade because of the push to bring a range of AI technologies to the forefront for developers and consumers, Wedbush Securities analyst Dan Ives said. “We believe AI technology being brought into the Apple ecosystem will provide significant monetization opportunities on both services and iPhones/devices and add $30-$40 per share to Cupertino’s growth story as visibility begins to unfold within Apple’s proven golden base.” 2.2 billion iOS devices,” Ive reviewed. Morgan Stanley sees potential for WWDC to boost sentiment toward Apple. “While investor expectations are high, we believe Apple can surprise favorably, helping to release pent-up demand, accelerate iPhone replacement cycles, and sustain the stock’s recent outperformance,” analyst Adam Jonas noted.
Tesla annual meeting: Tesla (Nasdaq: TeslaShareholders will meet on June 13 during the company’s annual meeting to vote on twelve proposals. The proposals include approving the election of second-tier directors to serve for a period of three years, a proposal to reduce the term of directors to one year, a proposal to commit to stopping the selection of mineral sources from deep-sea mining, a proposal to adopt a collective bargaining policy, and a proposal to approve the transfer of the company’s incorporation status. From Delaware to Texas, and the high-level proposal to certify Elon Musk’s compensation under the CEO pay package that was previously approved in a private meeting in 2018. The proposal to confirm the move to Texas, where Tesla (TSLA) indicated that it has a large number of Manufacturing, operations and engineering employees in Texas. “Texas is a place where we must continue to work toward our mission of accelerating the world’s transition to sustainable energy, laying the foundation for our growth through our on-ramp and building plants for our future vehicles and to help meet the demand for energy storage as well. As is the progress we’ve made in Artificial Intelligence via Full Self-Driving and Optimus.” As for Musk’s compensation award, Tesla (TSLA) recommended that shareholders vote in favor. In its SEC filing, Tesla (TSLA) said the board would need to negotiate an alternative compensation package if the 2018 award is not approved by shareholders. The Company believes that the replacement bonus is unlikely to be less costly or dilutive to shareholders. Ultimately, rejection is costly in time and money during the process. Tesla (TSLA) said Elon Musk’s 2018 award was the result of “transformational” growth and “extraordinary” shareholder value. On Wall Street, analysts have been reluctant to offer forecasts because investors and proxy companies already weigh in on both sides of Musk’s compensation issue. However, Piper Sandler believes it is clear that Tesla’s (TSLA) stock price will decline if the compensation award is denied. The other key issue is whether Elon Musk will walk away from the shareholder meeting with the goal of gaining 25% voting control of the company over time. If not, Morgan Stanley warned that Tesla ( TSLA ) shareholders should be prepared for the company to slow or significantly reduce its direct investment in sensitive, advanced AI efforts due to Musk’s previous statements about his desire to be an effective steward of powerful AI technology. . Piper Sandler analyst Alex Potter cautioned, “Although Tesla may still be in a position to indirectly benefit from AI developments, we believe most adjacent AI efforts could be concentrated within non-Tesla entities where Elon Musk is in control.” Another risk is that Tesla (TSLA) will lose its AI premium if Elon Musk is not satisfied. This issue has already come to light with a report this week that xAI may have received Nvidia (NVDA) H100 chips that were originally supposed to go to Tesla (TSLA). John Belton, portfolio manager of Gabelli Funds, is just one of many skeptics who have noticed that Tesla’s (TSLA) stock price is disconnected from the fundamentals typical of the car company. Of course, there’s also the extreme possibility of Elon Musk selling Tesla ( TSLA ) stock to fund another venture, as he did with the Twitter acquisition. Approval of the compensation package and/or Musk’s 25% voting control are also seen with some variables being difficult to predict, such as the potential for a new lawsuit or investor concerns that Musk will retain too much control.
Investor events: Next week’s calendar of events 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 proficiency in AWS security services. corfu (Nasdaq: QRVO), Stellantis (STLA), Harmonic (HLIT), and Ryder System (New York Stock Exchange: R) also has major events scheduled for investors.
