Stock markets had a mixed performance last week. The U.S. economy added more jobs than expected, but the unemployment rate rose to 4%, exceeding that level for the first time since January 2022. Investors are skeptical of the Fed's interest rate cuts, and interest rates are expected to remain stable at 5.25% to 5.50% for the time being. Meanwhile, the European Central Bank (ECB) and the Bank of Canada cut interest rates.
Elon Musk's xAI to build 'Gigafactory of Computing' in Memphis
So let's take a closer look at the eventful week ahead.
Apple's Worldwide Developers Conference will focus on AI
With Apple's annual Worldwide Developers Conference starting on Monday, investors are eager to see how the company will respond to the artificial intelligence boom. Apple and OpenAI are reportedly teaming up to integrate ChatGPT directly into the iPhone's operating system.
WWDC is a software-focused event, so investors may not hear much about the next iPhone, but Apple fans can expect new AI features integrated into iOS. The event can be viewed on Apple's website and YouTube channel. The event concludes on Thursday.
Goldman Sachs Annual Global Healthcare Conference
Goldman Sachs' 45th Annual Global Healthcare Conference will take place from June 10 to June 13, 2024 at the Loews Miami Beach Hotel in Miami Beach, Florida. The conference will feature healthcare industry executives including Neogen Corporation, Replimune Group, RadNet and Merck.
Executives speaking Monday will include the head of Eli Lilly & Co.'s diabetes and obesity division, which recently announced a record $5.3 billion investment in the weight-loss drug Zepbound.
Notable gains: Oracle, Broadcom, Adobe
This week, technology companies including Oracle, Broadcom and Adobe are scheduled to report earnings.
Software giant Oracle's shares have risen 17% this year and throughout last year. The company will report its fourth-quarter earnings on Tuesday, June 11. The consensus estimate for earnings per share (EPS) for the current quarter is $1.34, according to Zacks Investment Research. The company reported earnings per share of $1.35 in the same quarter last year.
Chipmaker Broadcom Inc. is scheduled to report earnings after the market closes on Wednesday. The company's shares are up 27% this year and 79% last year. Zacks Investment Research expects the company to earn $8.16 per share for the quarter, up from $9.51 per share in the same period last year.
Adobe shares have fallen nearly 22% so far this year. Increasing competition has led Adobe to introduce AI-powered text-based video editing software. Adobe is scheduled to release its second-quarter earnings report after the market closes on Thursday. The consensus EPS estimate for the current quarter, according to Zacks Investment Research, is $3.54. EPS for the same quarter last year was $3.04.
Tesla shareholders vote on how much to pay Elon Musk
On Thursday, Tesla shareholders could decide the future of the world's largest electric-car company. Investors big and small will vote on whether Elon Musk deserves his $46 billion payout. Tesla's board chairman, Robin Denholm, recently suggested that Musk could leave the company if shareholders reject his payout.
Will the EU impose tariffs on electric cars?
The European Commission is due to announce on Monday local time whether to impose tariffs on Chinese-made electric vehicles, a decision that could have significant implications for the EU's climate goals and the Chinese export market.
This comes after President Biden announced last month that he would quadruple U.S. tariffs on imports of certain electric vehicles to up to 100% to prevent Chinese automakers from saturating the market with cheap vehicles.
