How ORCL Earnings Explain the Opportunities and Risks in AI

What’s in Today’s Report:

• How ORCL Earnings Explain the Opportunities and Risks in AI

Futures are slightly higher following a mostly quiet night of news as investors digested the better than expected PPI report and looked ahead to today’s all-important CPI.

Economically, the only notable number was Japanese PPI which was better than expected, rising 2.7% y/y vs. (E ) 2.8% y/y.  Japanese stocks rallied 1% in response.

Today brings the highlight of the week, CPI, and expectations are as follows:  0.3% m/m, 2.9% y/y.  A better-than-expected headline will solidify rate cut expectations and push back on stagflation concerns and that should be a solid market positive.  A “hot” number, however, will put three rate cuts before year-end in doubt and almost certainly pressure stocks.

Other events today include an ECB Rate Decision (E: No Changed), Jobless Claims (E: 234K) and some notable earnings reports:  KR ($1.00), ADBE ($4.21), RH ($3.20).