By Daniel Shvartsman
Investing.com – Markets started September on a positive note, closing up 3.4% in the first full week of the month and jumping 4.1%, while the alone 2.4%. Whether it was just a market positioning adjustment or the signal for something more sustained, it will be on the lookout this week, especially when a new set of inflation reports comes out. Corporate news is lighter, although some big earnings reports and a rare major IPO are slated for next week. This weekend served as a reminder of the ongoing and changing nature of the Russia-Ukraine war, and while recent developments may not have a direct impact on the market, the repercussions could certainly reverberate in the financial world.
Here’s what you need to know about the financial markets next week:
1. CPI and PPI reports
A series of consumer price index (CPI) reports for August come out this week. India publishes its Monday,,, and full release on Tuesday, the report release on Wednesday, the report release on Thursday, and their full release on Friday.
Producer Price Index (PPI) reports are also expected from, (Tuesday), (Wednesday) and
Expectations are for a decline in US inflation, with a forecast of 0.3%, corresponding to last month’s number; this would mark the lowest consecutive readings since last fall. it should be -0.1% as falling gas prices continue to reduce the pressure on inflation. it should be 0.3%, up from 0.2% last month, while it should also be -0.1%.
These expectations are quite different in Europe; The UK is expected to see 0.8%, a significant jump, while a jump of another 0.6% is expected. The Eurozone is expected to see a 0.5% rise, a jump from last month’s revised figure of 0.1%. The same is expected for, as energy prices continue to loom as the seasons change.
The ECB has already made its latest move, raising interest rates by 75 basis points last week. The Fed should stick to at least one, and inflation reports shouldn’t shake it, but no doubt President Jerome Powell would welcome signs that inflation is at least moderating significantly.
The Bank of England, whose meeting was scheduled for this week but has been postponed in the wake of Queen Elizabeth II’s death, faces a more fluctuating environment with new Prime Minister Liz Truss in office and who has already issued a. Its effect on the market is among the things the BOE will have to weigh; it will also get additional data to put into the mix.
2. Pair of key earnings reports
While the second-quarter earnings season is nearly over, there are two key software companies reporting results that are worth watching.
Software giant Oracle (NYSE 🙂 reports Monday after closing and is expected to show 4% earnings growth in the first quarter, including new acquisition Cerner (NASDAQ :). Oracle received a recent from a Global Equities analyst in light of the agreement with Cerner, as well as from Guggenheim, but like many in the software and technology industry, it has adapted to a more difficult macro environment, as has been the agency. So the earnings report and the conference call could be revealing.
Adobe Systems (NASDAQ 🙂 reports Thursday after market close. The company is expected to see earnings growth of 7.3% and revenue growth of 12.6%. A Jefferies analyst says the company hasn’t changed the guidance for macro headwinds, only forex effects, so there may be more room to disappoint. The company disappointed, but the share price has more than recovered since then. Adobe’s role as one of the original software companies that successfully transitioned to a software as a service (SaaS) model makes its report a useful wake-up call.
3. Corebridge financial IPO
The volatile trading of 2022 left the IPO market as a victim, with most of the IPOs that made it to the market being low-traded and relatively obscure. Corebridge Financial is a spin-off of AIG (NYSE 🙂 but will come to market via an IPO rather than a direct issue to AIG’s shareholders. It focuses on retirement solutions and insurance plans. The company is expected to start trading on Thursday and seeks to raise $ 1.68- $ 1.92 billion before accounting for the subscriber’s fees or stock purchases, compared to a valuation range of $ 13.6- $ 15. 6 billion.
Read more about the IPO here:
4. Major Investment Conferences and Starbucks Investors Day
With the end of summer and earnings season in its quietest moments, many companies are heading out to meet investors. Investor lectures and presentations often feature strategic updates and announcements, changes in sales analyst and market thinking, and even deals.
Some noteworthy lectures or analyst days this week:
Goldman Sachs Communicopia + Technology Conference, with 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 health care conference, with 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, with Cboe Global Markets Inc (NYSE :), US Bancorp (NYSE :), Huntington Bancshares (NASDAQ :), American Express (NYSE :), JPMorgan (NYSE :), Allstate (NYSE 🙂 and Robinhood (NASDAQ :), among other companies.
On the analyst days front, Workday (NASDAQ :), Workiva (NYSE :), Cortev (NYSE 🙂 and Starbucks (NASDAQ 🙂 all have investor or analyst days on Tuesdays, with Starbucks being particularly under close scrutiny given the appointment of its new CEO recently.
5. Russia-Ukraine developments and aftershocks
Ukraine’s surprising takeover of the country’s northeastern city of Izium 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 if they were able to maintain a two-pronged attack and take and hold territory, it would set a different tone.
Russia continued to intensify economic pressure on Europe with the closure of the Nord Stream 1 pipeline. While the military landscape is changeable and uncertain, it is not hard to imagine that Russian setbacks could only increase Russia’s willingness to use its economic leverage with Ukraine and its supporters in predictable and unpredictable ways, which could put more pressure on European countries to resolve their energy situation before winter arrives, and that makes inflation reports mentioned at the beginning of the article even more relevant.