Wall Street Breakfast: The Week Ahead


Economic reports in the week ahead

Expect the CPI Inflation report for August to be one of the main talking points in the coming week. The report is expected to show prices rose 8.1% in August to mark a second consecutive month of deceleration, although core CPI is expected to be slightly higher on a month-to-month comparison. The report will fall with members of the Federal Reserve Board in a blackout next week ahead of the next FOMC meeting scheduled for September 20-21. Analysts have warned that moderating inflation is unlikely to prevent the FOMC from raising interest rates another 75 points at the meeting due to its hawkish stance. In his last public appearance before the FOMC meeting, Fed Chairman Jerome Powell said the central bank’s policy interventions were aimed in part at restoring labor market balance and bringing wages down to lows. levels more compatible with 2% inflation. . Big corporate events next week include highly anticipated investor days for Starbucks (NASDAQ:SBUX) and Roblox (NYSE:RBLX).

Earnings Spotlight: Monday, September 12 – Oracle (NYSE: ORCL) and Planet Labs (NYSE: PL).

Earnings Spotlight: Tuesday, September 13 – Core & Main (NYSE: CNM) and Vintage Wine Estates (NASDAQ: VWE).

Earnings Spotlight: Wednesday, September 14 – BRP (NASDAQ:DOOO) and Li-Cycle (NYSE:LICY),

Results Spotlight: Thursday, September 15 – Adobe (NASDAQ: ADBE).

Earnings Spotlight: Friday, September 16 – Manchester United (NYSE: MANU).

IPO monitoring: The IPO calendar is heating up a bit with the IPO of several new companies. Chinese financial services firm Lichen China (NASDAQ:LICN) is expected to begin trading on September 12. Meanwhile, Corebridge Financial (CRBG) is set to start trading on September 14 after splitting from AIG (AIG). The IPO offering will see 80 million shares released at an expected price range of $21 to $24 per share. CRBG is already profitable and expects to provide a 4% dividend yield at the IPO price. Biotech company Jupiter Neurosciences (NASDAQ:JUNS) is also expected to begin trading on September 14. Also, watch for the expiration of the IPO lockup for equity blocks on EzFill Holdings (NASDAQ:EZFL) and Pasithea Therapeutics (NASDAQ:KTTA).

Starbucks Investor Day Preview: Starbucks (SBUX) will host a highly anticipated Investor Day on September 13. The company is expected to provide full details on its new reinvention plan, provide an update on strategies and introduce new CEO Laxman Narasimhan to the analyst community. Investors will also be keeping a close eye on what SBUX does with its 2023 earnings forecast and roadmap for the long-term financial model. SBUX has previously described a normalized long-term EPS algorithm of 10% to 12%, which may be at risk of revision. Ahead of the Starbucks event, Barclays said it was very bullish on the stock. “We view Starbucks as a leading, large-cap, high-growth global consumer company, led by a dominant U.S. retail and consumer products platform, significant international growth led by China and a premier digital platform,” the company announced in a preview. Bernstein also took a positive stance, saying he believes the company can turn around next year with a new CEO marking a return to long-term sustainable growth. “In our view, the headwinds from China in 22 will turn into headwinds in 23…Labour investment in the United States will be exceeded during the year, mitigating the headwinds from unionization, while leading to stronger fundamental performance Finally, we expect global inflation to moderate (i.e. coffee and labor), while prices additional menus will dim.” For its part, Morgan Stanley reiterated that SBUX analyst meetings tend to be positive stock market catalysts because they re-establish in investors’ minds the company’s many positive attributes, the size of its competitive moat and its prospects. future growth. The company assumes depressed margins for SBUX in FY22, but believes there could be several years where revenue growth (including pricing) should slightly outpace expense growth to support strong growth in the EPS. Bank of America is a bit more cautious about how Starbucks will handle workforce investments and whether those will be split between recurring and nonrecurring expenses in future years.

Detroit Auto Show preview: The NAIAS Detroit Auto Show kicks off Sept. 14, ending a three-year hiatus triggered by the COVID-19 pandemic. Among a lighter roster of attendees – Ford Motor Company (NYSE:F), General Motors (NYSE:GM) and Stellantis (NYSE:STLA) are set to headline alongside Korean automaker Hyundai (OTCPK:HYMLF) as well as a number of EV and automotive technology startups. The most anticipated reveal of the event is the presentation of the new S650 Mustang. Ford (F) has been teasing the new 2024 model for some time, though details about it remain scarce. Automotive News reported days before the event that a hybrid model will not be on deck for the event, despite long-standing plans to roll out a more eco-friendly model. The new Mustang is expected to come with Google’s new infotainment software. Ford is also expected to show off a new Lincoln L100 concept car at the event. Both General Motors (GM) and Stellantis (STLA) brands will be well represented at the event, with a strong possibility of new announcements from each. Stellantis-owned Chrysler teased the unveiling of a special-edition Chrysler vehicle, while Stellantis (STLA) said cryptically on Facebook ahead of the event to “stay tuned.” In addition to major automakers, new startups like Harbinger are on the September 14 agenda. Los Angeles-based Harbinger, which focuses on mid-duty vehicles, said its initial product line will include “electric chassis and cab chassis designed specifically to meet unique expectations for performance, durability and life required in Class 4-7 vehicles,” as well as “eAxle” and battery technologies “designed to exceed industry standards. Read more details about the company’s planned announcements. Several EV technology companies are also set to showcase at the Detroit Auto Show. German automotive tech company Autel is set to reveal a list of new advances in electric vehicle charging, cloud capabilities and more. Plug Zen is also on the program. The company is a developer of electric vehicle charging products that can charge up to 10 vehicles simultaneously. Canadian auto parts maker Magna International (NYSE:MGA) is set to unveil its “EtelligentForce” battery-electric vehicle powertrain system to electrify pickup trucks and light-duty vehicles. Finally, a number of companies that don’t quite fit into the automotive category are expected to be present. In what the event called a “Show Above the Show”, six international air mobility innovators among electric vertical take-off and landing (eVTOL) aircraft, amphibious sport aircraft, hoverbikes, hoverboards and power suits reaction should be part of the show. It should be noted that XTURISMO and ASX must also provide updates during the week’s busy schedule. The latter is expected to unveil its electric vertical take-off and landing aircraft SIGMA – SIX (S6) at the event. The first will present its flying bikes.

Corporate events: Brookfield Asset Management (NYSE: BAM) will host an Investor Day on September 12. Shares of BAM rose more than 3% after last year’s Investor Day. On September 13, Twitter (NYSE: TWTR) will hold a special meeting of shareholders to vote on Elon Musk’s offer to buy the company for $54.20 per share. A series of investor events are scheduled for September 14-15 with Cimpress plc (NASDAQ:CMPR), Workday (NASDAQ:WDAY), Roblox (RBLX), Humana (NYSE:HUM), Danaher (NYSE:DHR), Harmonic’s (NASDAQ::HLIT) and National Instruments (NASDAQ:NATI) among the most notable. The week ends with AdaptHealth Corp (NASDAQ:AHCO) hosting a Capital Markets Day event on September 16.

Notable conferences: A busy conference schedule next week is headlined by Goldman Sachs’ Communcacopia technology conference which has been the backdrop for technology and media developments in the past. Some of the notable presenters this year are eBay (NASDAQ:EBAY), General Motors (GM), Peloton Interactive (NASDAQ:PTON), Coinbase Global (NASDAQ:COIN), Applied Materials (NASDAQ:AMAT), Etsy (NASDAQ:ETSY) , IMAX (NYSE: IMAX), Pinterest (NYSE: PINS) and AT&T (NYSE: T). Other notable conferences include CL King’s 20th Annual Best Ideas Conference, Barclays Global Financial Services Conference, Goldman Sachs Communacopia + Technology Conference, Morgan Stanley’s 20th Annual Global Healthcare Conference , the Raymond James Consumer Conference and KBC Securities Virtual Life Sciences. Conference.

Mentions of Barron: Volkswagen’s (OTCPK:VWAGY) plan to pursue the IPO of Porsche’s (OTCPK:POAHY) preferred shares and list them in Frankfurt appears to do much to address its low valuation ahead of the offering in late September. or early October. The offer is seen as a positive catalyst for Volkswagen shares, with Porsche estimated at $60 billion to $85 billion and likely to attract investor attention. Porsche is considered the most valuable part of Volkswagen’s automotive portfolio, which includes its mainstream VW brand, its premium Audi unit and its ultra-premium Bentley and Lamborghini lines. Beyond the IPO buzz, Volkswagen is seen as an attractive stock play in the automotive sector based on its earnings and sum-of-the-parts analysis, and is called the incumbent. best equipped to take on Tesla (TSLA).

Sources: EDGAR, Bloomberg, CNBC, Reuters

Editor’s Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these actions.


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