Stock Market Week Ahead: Tesla's Robotaxi, Apple WWDC And Oracle Earnings
Despite a tough stock market session Thursday, the Nasdaq and S&P 500 ended the week with solid gains, and the Dow industrials closed the week back above their 200-day moving average for just the second time since March. Thursday session did push the distribution day count to four on the Nasdaq and three on the S&P 500. The signals investors to stir a bit more caution into their trading.
The coming week holds Apple's annual developers conference, a key earnings report from Oracle and, according to reports, the official launch in Austin of Tesla's highly anticipated robotaxi service. There are also smaller names deserving some attention, including Game Stop GME, Chewy's CHWY, Adobe ADBE and Casy's General Store CASY. In addition, economists and investors will be watching some key date reports to determine to what degree price impact from tariffs has begun to make its way into the economy.
Stock Market Watch: The Summer Breakouts Arrive
With the S&P 500 and Nasdaq pushing past recent their ranges, a number of stocks are breaking out or on the cusp of breakouts. Those names include restaurant software maker Toast TOST, heavy construction firm Mastec MTZ, Amazon.com AMZN, uranium miner Cameco CCJ and newly public trading platform eToro ETOR. All except Cameco are flashing buy signals. Cameco is testing short-term support just below two buy points (one an early entry) in a cup-with-handle base. Mastec ended the week in a buy zone after its Friday breakout. Amazon was rising patiently below its handle buy point. And Israel-based eToro is forming an IPO base with a 74.28 buy point.
Closely Tracking Price Pressure
Two big inflation reports in the coming week will be scrutinized for upward pressure on prices from Trump tariffs. The consumer price index for May, on Wednesday, is expected to show a 0.3% monthly rise in core prices, according to the FactSet. That's about twice the 0.14% rise in May 2024, so the 12-month core inflation rate should rise to 2.9%. The Fed's primary inflation rate, the core PCE price index, combines components of the CPI and the producer price index, which is out Thursday. Health care services prices and air passenger services are key parts of the PPI. Also on the calendar, the federal budget balance for May will be a bond market focus when it's reported on Wednesday.
Jobs Report: Decent Hiring Obscures Labor Market Cooling; S&P 500 Rises
Tesla Readies Robotaxi Launch
While Tesla stock retreated, the EV giant remained poised to launch its limited robotaxi service. Bloomberg reported that autonomous Tesla Model Y vehicles will begin picking up passengers in Austin, Texas on Thursday, June 12. The limited Tesla ride-hailing service is expected to be invite-only with plenty of tele-ops to ensure safety levels. Chief Executive Elon Musk says the initial rollout will consist of about 10 Model Y vehicles. Morgan Stanley analyst Adam Jonas points out there is a publicity campaign on Musk's social media platform X around the Austin robotaxi day. "As is typical for highly anticipated Tesla events, we would keep expectations well contained," Jonas wrote.
Apple WWDC Likely Subdued
Apple's Worldwide Developers Conference is likely to be low-key after the consumer electronics giant overpromised last year. CEO Tim Cook on Monday kicks off the event expected to focus on a new look and name for Apple's operating systems, and opening its AI models to developers. Reports say Apple will avoid talking about its delayed AI-powered Siri.
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Oracle attempts a comeback
Oracle reports fiscal Q4 results Wednesday – with Barclays analysts projecting a "comeback quarter." ORCL stock's 60% rally in 2024 marked its best performance this century. But shares are well off highs, amid concerns about AI infrastructure spending and the broader economy. Analysts suggest AI data center capacity constraints are easing. If so, that would allow Oracle to tap into a big backlog of data-center demand. Meanwhile, Oracle is a partner in the Trump-endorsed Stargate AI infrastructure project – a $100 billion private effort to build AI data centers in partnership with OpenAI, SoftBank and others. Oracle is also expected to be involved in the bidding for TikTok's U.S. operations. Overall, analysts look for adjusted earnings to rise 1% to $1.64 per share. Sales are seen rising 9% to $15.6 billion.
Earnings Watch: Oracle Stock Revs High Amid Earnings Optimism, Bullish AI Prospects
Reports Worthy Of Special Attention
While the earnings season is winding down, several reports in the coming week are worth noting. Game Stop has launched its bitcoin acquisition strategy, and any details will be of key interest. Chewy, is up 42% this year and extended from a mid-May breakout. Core & Main CNM rallied this week after a big beat by peer Ferguson FERG.
Stock Market Earnings Briefs
Casey's General Stores posted an upturn in sales in its third-quarter report in March. Sales are expected to continue strong when the company reports Monday, with earnings turning higher at midyear. Casy's stock is up a bit less than 12% so far this year.
Adobe will report its fiscal second-quarter results late Thursday. The digital media and marketing software firm is seen earning an adjusted $4.97 a share, up 11% year over year, on sales of $5.8 billion, up 9%. Investors will focus on traction for the company's generative AI products. Since April, Adobe stock has been trying to climb out of a 14-month downtrend.
RH RH, the old Restoration Hardware, delivers Q1 results on Thursday. Earnings turned sharply higher in Q3 '24, and the big gains are projected to continue through at least early '26. But a members-only promotion launched in May could signal weakening demand. Shares are broken down far below a January high.
United Natural Foods UNFI is testing support after a failed breakout. It reports fiscal Q3 results on Tuesday. Forecasts call for strong growth this year, peaking with a 2,130% EPS gain in its fiscal fourth quarter.
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