What to Expect in the Week Ahead (ADBE and ORCL Earnings; Inflation Data and FOMC Meeting)

Moomoo Breakfast US joined discussion · Dec 10, 2023 03:01

What to Expect in the Week Ahead (ADBE and ORCL Earnings; Inflation Data and FOMC Meeting)

The main events this week will be the latest inflation data and the Federal Reserve's policy committee's December meeting, with a decision on what they will do with interest rates due on Wednesday afternoon.

The market is overwhelmingly expecting no change to rates. Fed officials' latest projections for the economy and interest rates will offer clues into the future path of monetary policy.

Earnings reports this week will come from $Oracle(ORCL.US)$ on Monday, $Johnson Controls(JCI.US)$ on Tuesday, $Adobe(ADBE.US)$ on Wednesday, $Costco(COST.US)$ and $Lennar Corp(LEN.US)$ on Thursday, and $Darden Restaurants(DRI.US)$ on Friday.

$Oracle(ORCL.US)$ : Q3 earnings preview

Texas-based software giant Oracle will post its earnings results after the market closes on Monday. Analysts expects EPS and revenue to grow Y/Y, driven by its AI initiatives.

Consensus EPS Estimates: $1.32

Consensus Revenue Estimates: $13.05B

Earnings Insight: Oracle has exceeded EPS and revenue estimates in 6 of the past 8 quarters.

$Adobe(ADBE.US)$ : Q3 earnings preview

Adobe will update investors about its earnings on Wednesday after the closing bell.

Consensus EPS Estimates: $4.14

Consensus Revenue Estimates: $5.02B

Earnings Insight: Adobe has exceeded EPS in all of the past 8 straight quarters and revenue estimates in 6 of those reports.

Federal Reserve meeting

The last Federal Reserve meeting of 2023 is on deck in the week ahead, and investors will be keen to look for signals on when the central bank may start to cut interest rates, as stocks try to finish the year off on a high note.

Fed Chair Powell is widely anticipated to keep the key fed funds rate steady in the 5.25%-5.5% range, where it’s been since July, at the conclusion of its December policy meeting next Wednesday. The central bank has already held the benchmark rate steady for the last two consecutive meetings.

More inflation reports

The November consumer price index, set to come out Tuesday, and the producer price index, set for Wednesday, will show investors whether inflation is easing or will remain sticky. That will have implications for the Fed's thinking on easing.

The November CPI is expected to show monthly inflation unchanged from the prior month, according to FactSet consensus estimates. On a yearly basis, the consumer price index is anticipated to show a 3.1% rise, down slightly from a 3.2% rise in the October year-over-year reading.

Meanwhile, core CPI, which excludes volatile food and energy prices, is expected to have risen by 0.3%, representing a slight rise from the 0.20% gain in the previous month.

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