© Reuters.
By Daniel Shvartsman
Investing.com – Markets started September on a strong note, with a close of 3.4% in the first full week of the month and a jump of 4.1%, while the rise only 2.4% Whether that’s an adjustment in market positioning or the sign of anything longer remains to be seen this week, especially as a new set of inflation reports comes out. Corporate news is on the lighter side, though some big earnings reports and a rare major IPO are on the docket for next week. This weekend served as a reminder of the ongoing and evolving nature of the Russia-Ukraine war, and while recent developments may not have had a direct impact on the market, the effects have certainly reverberated through the world of finance.
Here’s what you need to know for next week in the financial markets:
1. CPI and PPI Reports
A batch of consumer price index (CPI) reports for August came out this week. India releases it on Monday, , , and all released on Tuesday, releases its report on Wednesday, releases its report on Thursday, and the total release of them on Friday.
Producer Price Index (PPI) reports are also due from , (Tuesday), the (Wednesday), and
Expectations are for inflation to ease in the US, with expectations at 0.3%, matching last month’s figure; it would mark the lowest back-to-back reading since last fall. is expected to be -0.1%, as lower gas prices continue to reduce inflationary pressure. is expected to be 0.3%, an increase from 0.2% last month, while the forecast is -0.1%.
Expectations are somewhat different in Europe; the UK is expected to see 0.8%, a significant jump, while a further 0.6% is expected. The Eurozone is expected to see a 0.5% increase in , a jump from last month’s revised figure of 0.1%. The same is expected by , as energy prices still fluctuate significantly with changing seasons.
The ECB has taken its latest step, raising interest rates by 75 basis points last week. The Fed is expected to stay at least a , and inflation reports are not expected to shake it up, but Chair Jerome Powell will undoubtedly welcome signs that inflation is at least moderating significantly.
The Bank of England, whose meeting was due this week but was postponed after the death of Queen Elizabeth II, faces a more volatile environment with new Prime Minister Liz Truss in charge and has already released a major plan in energy. Its impact on the market is among the things the BOE has to weigh; it will also get a number of additional pieces of data to throw into the mix.
2. Pair of Basic Income Reports
While the Q2 earnings season has almost played out, there are two major software companies reporting results worth watching.
Software giant Oracle (NYSE: ) reports Monday after the close, and is expected to show 4% earnings growth in its first quarter with its latest acquisition Cerner (NASDAQ: ). Oracle received a recent price target upgrade from a Global Equities analyst in light of the Cerner deal, as well as a buy rating from Guggenheim, but like many in the software and tech industry, has -adjustment to a more difficult macro environment, as the company reportedly began to lay off. So the earnings report and conference call can be revealed.
Adobe Systems (NASDAQ: ) reports Thursday after the market close. The company is expected to post 7.3% revenue growth and 12.6% revenue growth. A Jefferies analyst cautioned that the company did not adjust guidance for macro headwinds, only forex effects, so there could be more room for disappointment. The company missed its previous report but the share price has more than recovered. Adobe’s role as one of the original software companies to successfully transition to a SaaS (software as a service) model makes its report a useful bellwether.
3. Corebridge Financial IPO
The volatile trade of 2022 has left the IPO market as a casualty, with most IPOs reaching the market being of the thinly traded, relatively obscure variety. Corebridge Financial is a spin-off from AIG (NYSE: ) but will come to market through an IPO rather than a direct issuance to AIG shareholders. It focuses on retirement solutions and insurance plans. The company is due to begin trading on Thursday, and aims to raise $1.68-$1.92B before factoring in fees or underwriter share buybacks, compared to a valuation range of $13.6-$15.6B.
Read more about the IPO here: 7 Things to Know About the Corebridge Financial IPO
4. Big Investment Conferences and Starbucks’ Investors Day
With summer winding down and earnings season in its quietest moments, many companies are hitting the road to meet with investors. Investor conferences and presentations often feature strategic updates and announcements, sell-side analyst updates and market thinking, and even dealmaking.
Some notable analyst conferences or days this week:
Goldman Sachs Communicopia + Technology Conference, featuring companies such as: MongoDB (NASDAQ:), Warner Bros Discovery (NASDAQ:), Dynatrace (NYSE:), Dell Technologies Inc (NYSE:), Airbnb Inc (NASDAQ:), Snowflake Inc (NYSE:), ServiceNow (NYSE:), T-Mobile US Inc (NASDAQ:), Pinterest (NYSE:), and Visa (NYSE:)
Morgan Stanley 20th Annual Global Healthcare Conference, featuring companies such as Modern (NASDAQ:), Pfizer (NYSE:), Quidel (NASDAQ:), Merck & Company Inc (NYSE:), Bausch + Lomb Corp (NYSE:), AbbVie Inc (NYSE: ), Eli Lilly (NYSE: ), Insulet (NASDAQ: ), and Quest Diagnostics (NYSE: ).
Barclays) Global Financial Services Conference, featuring Cboe Global Markets Inc (NYSE:), US Bancorp (NYSE:), Huntington Bancshares (NASDAQ:), American Express (NYSE: ), JPMorgan (NYSE: ), Allstate (NYSE: ), and Robinhood (NASDAQ: ), among other companies.
In front of analyst days, Workday (NASDAQ:), Workiva (NYSE:), Corteva (NYSE: ), and Starbucks (NASDAQ: ) all had investor or analyst days on Tuesday, with Starbucks especially under close watch due to the appointment of its new CEO recently.
5. Russia-Ukraine Developments and Aftershocks
Ukraine’s surprise recapture of the city of Izium in the country’s northeast has drawn the attention of observers around the world as a potential turning point in the war. Ukraine is also attacking Russian positions in the south of the country, near Kherson, and should they sustain an attack on two fronts and take and hold territory, it will mark a different tone.
Russia continues to increase economic pressure on Europe with the closure of the Nord Stream 1 gas pipeline. While the military landscape is shifting and uncertain, it is not hard to imagine that Russian setbacks could only increase Russia’s willingness to use its economic leverage over Ukraine and Ukraine’s supporters in the predictable and unpredictable ways, which may put more pressure on European countries to resolve. their energy situation before winter arrives, and that makes the inflation reports mentioned at the top of the article all the more relevant.