June 8th - The Week Ahead

The Week Ahead Of Us 🔍

Welcome back!

Futures are slightly down as the U.S. and China are set to kick off more trade talks in London on Monday. Bessent and Lutnick will be leading the charge for America. There’s early hopes that talks will continue to be constructive, and that any escalation will be merely a “TACO Trade”.

Here’s a look at earnings this week - 1Q earnings have largely wrapped up.

• Monday: Casey’s General Stores

• Tuesday: GameStop, J.M. Smucker, Core & Main, Academy Sports, Dave & Busters, United Natural Foods

• Wednesday: Oracle, Chewy, Victoria’s Secret,

• Thursday: Adobe, RH, Korn Ferry

Here’s a look at economic data this week (estimates are in quotations).

• Wednesday: CPI (0.2%), Core CPI (0.3%), CPI y/y (2.5%), Core CPI y/y (2.9%), May Federal Budget (–$318B)

• Thursday: Initial jobless claims (242k), PPI (0.2%), Core PPI (–0.1%), PPI y/y (2.4%), Core PPI y/y (2.9%)

• Friday: June preliminary Consumer Sentiment (55.0)

• Other: Apple’s Worldwide Developers Conference is this week - the Tech Giant has been beleaguered by tariffs and appears to have fallen behind in the AI race, so Investors want to hear more on both fronts

Earnings Corner 📜 

Broadcom (AVGO) $AVGO ( ▲ 1.83% ) Beat on revenue and EPS, with guidance in line. Revenue rose 20% y/y and EPS came in at $1.58. Growth was driven by $4.42B in AI chip sales and $6.62B in software revenue, up 25% y/y mainly from VMware. Management flagged continued demand from three major hyperscalers as AI spend ramps.

Lululemon (LULU) $LULU ( ▲ 0.05% ) Beat on revenue and EPS, but cut full-year guidance. Sales rose from $2.21B to $2.37B and EPS hit $2.60, but U.S. comps declined and Q2 earnings were guided below Street. Tariffs are pressuring margins, and Vuori is gaining further traction in Lululemon’s largest market.