Decisive week brings together balance sheets from big techs, Fed and elections, but interest rates and employment rule the market
According to the Meet Kevin channel, the Fed meeting should be of little relevance; employment data, inflation and the issue of Iran will define the direction of assets.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM MEET KEVIN · 3 MIN
The next eight days bring together an unusual sequence of events for investors: earnings reports from technology, finance and energy companies, the Federal Reserve (Fed, the American central bank) meeting and elections in Israel and the United States. In the opinion of the Meet Kevin channel presenter, the decisive factor for the market, however, will not be the Fed, but the employment data, inflation and developments involving Iran.
According to Meet Kevin, the agenda starts on Tuesday morning with results from SoFi and UPS, in addition to ADP's weekly employment report. In the afternoon, HOOD (Robinhood), SK Hynix, Visa and Enphase come. On Wednesday, Vertiv and GE Vernova report, and the Fed's decision occurs.
High interest rates put financial pressure on
Regarding SoFi, the presenter states that the financial sector is facing a difficult period, in part due to the high level of interest rates, and that the company has advanced in the mortgage segment. In his assessment, the stock should appreciate strongly when rates fall. In the case of UPS, he says he will observe the situation of the company's pension fund liabilities.
Meet Kevin also revealed that his real estate startup has been informed by the Department of Real Estate that it will be approved as a mortgage lender in November. According to him, the company does not intend to use the license for now, but if interest rates decline, it would open up intermediation opportunities.
Chips, energy and data centers on the radar
For SK Hynix, the presenter classifies the balance as "huge" and says that the market needs information about the company's loss of leadership in high-bandwidth memory. From Enphase, he expects a possible date for the 800-volt converter; Other than that, there is little to observe. At GE Vernova, the focus is on the turbine order backlog, and Vertiv and GE Vernova can bring new momentum linked to data centers.
After the Fed, come Microsoft, Google, ServiceNow, Fortinet, Chipotle and FedEx. According to the presenter, if Microsoft and Google signal that they also need to raise funds, like SpaceX and Meta, the market may react badly again, which he considers to be expected. Amazon is expected to give a similar message on Thursday, when SanDisk (with information about the storage market), Reddit, Roblox, Coinbase, MicroStrategy, Starbucks and Pinterest also report.
Fed, inflation and what really moves the market
The market widely expects the Fed to maintain interest rates. The presenter admits that there may be negative surprises, but considers the meeting "relatively irrelevant". For him, what will shape the December decision will be the next employment reports and the next two consumer inflation indices (CPI). Everything, he says, will depend on Iran.
The PCE, a measure of inflation monitored by the Fed, is expected at the end of the week at 0.03 at the core, according to the presenter. He does not see the data as a catalyst, as the number can be calculated based on the PPI and CPI, which are already known.
The content is informative and reflects the channel's assessment and does not constitute an investment recommendation.
Automatically translated from Portuguese.
