Wall Street Breakfast: The Week Ahead

Economic reports in the week ahead

Investors could get another reality check with major averages having fallen in five of the last six weeks with the Federal Reserve maintaining a hawkish position on interest rates and recession fears cropping up again. Soaring bond yields and a strong U.S. dollar have reset valuations and earnings expectations on nearly every sector. The week ahead will see a flurry of economic releases including the latest updates on durable orders, consumer confidence, new home sales, GDP, and PCE prices. On the corporate calendar, Twitter (TWTR) will depose Elon Musk, Intel (NASDAQ:INTC) will hold a key innovation event, Amazon (AMZN) will showcase new products, and Tesla (NASDAQ:TSLA) will hold its highly-anticipated AI Day in Palo Alto, California.

Earnings spotlight: Tuesday, September 27 – Cracker Barrel (NASDAQ:CBRL), Jabil (JBL), and United Natural Foods (UNFI)

Earnings spotlight: Wednesday, September 28 – Thor Industries (THO), Jefferies (JEF), and Vail Resorts (NYSE:MTN).

Earnings spotlight: Thursday, September 29 – Bed Bath & Beyond (NASDAQ:BBBY), CarMax (KMX), Rite Aid (RAD), Micron (NASDAQ:MU), and Nike (NYSE:NKE).

IPO watch: Luxury real estate developer Lead Real Estate (LRE) is scheduled to start trading on September 27 and tech firm Beamr Imaging (BMR) has an IPO debut date of September 30. IPO lockup periods expire for blocks of shares of Expion360 (NASDAQ:XPON) and Iveda Solutions (IVDA).

Tesla AI Day preview: Tesla (TSLA) will hold its highly-anticipated AI Day event on September 30 with updates expected on full self-driving cars, the Dojo supercomputer, the robotaxi program, and a potential unveiling of the Tesla Bot. Optimus is described as a 5-foot 8-inch robot that can perform human tasks such as carry heavy objects. The eventual goal of Project Optimus is to deploy thousands of the humanoid robots at factories before exploring other uses for them including in the home. Elon Musk has teased that the robot business could eventually be worth more than Tesla’s car business. Other topics that could come up are timetable for Tesla Cybertruck and information on the more powerful Supercharger V4.

Nike earnings preview: Nike (NKE) is scheduled to report earnings on September 29 to consensus expectations for revenue of $12.29B and EPS of $0.92. Analysts think foreign exchange is a big factor with the new guidance issued by the company if its currency hedging program is not offsetting the fluctuations. While the near-term demand picture in China remains cloudy due to boycotts and COVID lockdowns, UBS thinks the market is underestimating just how attractive the athletic wear market in China is for the company over the long term. The firm pointed to favorable demographic trends, significant interest in health, wellness, sports, and sport participation, as well as consumers’ general preference for top brands.

Amazon product event: Amazon (AMZN) will hold an event to announce new devices, features, and services. The tech giant is expected to unveil new Echo devices, as well products from more the Ring and Blink subsidiaries. Like Tesla, Amazon is becoming more active with household robots and the company may tease on future integration of newly-acquired iRobot. A wildcard to watch is if Amazon uses the spotlight to announce a second Prime Day shopping event or special deals event. That could reset expectations in the retail sector if Target (TGT) and Walmart (WMT) are turned more promotional to clear inventory.

Corporate events: Intel (INTC) will hold its annual innovation conference on September 27. Intel Innovation 2022 will include a keynote address by CEO Pat Gelsinger and updates on the 13th Gen Intel Core series. On the same day, UiPath (NYSE:PATH) will hold its Investor Day featuring a series of presentations that will focus on the company’s strategic priorities, key growth initiatives, and financials. Shares of UiPath have rallied after similar events in the past. On September 28, there are investor events for Aurora Innovation (NASDAQ:AUR), V.F. Corp (VFC). TotalEnergies SE (TTE), Roivant (NASDAQ:ROIV), The Timken Company (TKR), and Stem Inc. (NYSE:STEM). On September 29, Brookfield listed affiliates (NYSE:BBU) (NYSE:BEP) (NYSE:BEPC) (BIP) (BIPC) will hold separate investor day events. Also watch Li Auto (LI) on September 30 with the Chinese electric vehicle maker set to host a launch event to unveil the Li L8 smart SUV.

Notable conferences: The conference schedule in the week ahead includes the Cantor Fitzgerald Oncology & HemOnc Conference, the Lytham Partners Fall 2022 Investor Conference, the Guggenheim Nantucket Therapeutics Conference, the TD Securities Paper and Forest Products Conference, the Ladenburg Thalmann Healthcare Conference, and the B. Riley 2nd Annual Crypto Conference.

Stock splits: The Annaly Capital Management (NYSE:NLY) 1-for-4 reverse stock split becomes effective on September 26.

Barron’s mentions: The cover story delves into the opportunity to snap up shares of the healthcare industry’s most promising companies on lower valuations. The post-COVID era in the sector is expected to shift the focus back to the innovation cycle and companies coming up on a large patent cycle. AI platforms are expected to break into the sector as well to integrate every piece of available data to equip physicians. Some of the companies mentioned as intriguing in the current market setup include Boston Scientific (BSX), UnitedHealth Group (UNH), Edwards Lifesciences (NYSE:EW), EQRx (NASDAQ:EQRX), Eli Lilly (LLY), and AbbVie (NYSE:ABBV).

Sources: EDGAR, Bloomberg, CNBC, Reuters

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