CPI inflation data, Fed rate cut odds will be in focus this week.
Oracle is a buy with a solid beat-and-raise quarter expected.
Apple is a sell with iPhone 16 launch event on deck.
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Stocks on Wall Street tumbled on Friday, with the benchmark suffering its biggest weekly loss of the year as investors dumped risk assets amid mounting worries over the health of the U.S. economy.
For the week, the S&P 500 fell 4.3% while the blue-chip shed 2.9%, their worst weekly losses since March 2023. The tech-heavy sank 5.8% for its biggest weekly drop since January 2022.
Source: Investing.com
The week ahead is expected to be another eventful one as investors continue to gauge the outlook for the economy and interest rates. As of Sunday morning, investors see a of the Fed cutting rates by 25 basis points at its September meeting, and a 30% chance of a 50-bps rate cut.
On the economic calendar, most important will be Wednesday’s U.S. consumer price inflation report for August, which is forecast to show headline annual CPI rising 2.6% year-over-year, compared to July’s 2.9% increase.
Source: Investing.com
Elsewhere, on the earnings docket, there are just a handful of corporate results due, including Oracle (NYSE:), Adobe (NASDAQ:), GameStop (NYSE:), and Kroger (NYSE:) as Wall Street’s reporting season draws to a close.
Regardless of which direction the market goes, below I highlight one stock likely to be in demand and another which could see fresh downside. Remember though, my timeframe is just for the week ahead, Monday, September 9 – Friday, September 13.
Stock to Buy: Oracle
I believe that Oracle is poised for significant gains this week, with a potential breakout to a new record high, as the cloud and software leader will likely report another quarter of upbeat top-and bottom-line growth and provide solid guidance thanks to broad strength in its cloud business.
Oracle is scheduled to release its fiscal first quarter earnings update…
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