This week ahead || Aug 26th - Aug 30th 2024
Here's your news for the week ahead.
Nvidia earnings highlight a busy end of August: What to know this week
Federal Reserve Chair Jerome Powell signaled that interest rate cuts are likely in September, propelling stocks to near-record highs with the S&P 500, Nasdaq, and Dow Jones each gaining over 1% for the week. However, the market's strength will be tested with Nvidia's highly anticipated earnings report, which could significantly influence the broader tech sector. Powell's comments suggested a measured approach to rate cuts, contingent on economic data, while the focus shifts to upcoming earnings from major companies and key economic indicators, including the Fed's preferred inflation gauge. Nvidia's performance, especially concerning its AI-driven growth, will be closely watched, as its stock has surged 160% year-to-date.
Kroger and Albertsons hope to merge but must face a skeptical US government in court first
The largest proposed grocery store merger in U.S. history between Kroger and Albertsons is facing a legal battle in federal court. The two supermarket giants argue that their $24.6 billion merger would help them compete with rivals like Walmart and keep prices down. However, the Federal Trade Commission (FTC) and several state attorneys general oppose the deal, arguing it would reduce competition, raise prices, and hurt workers. The court in Portland, Oregon, will decide whether to grant the FTC's request for a preliminary injunction to delay the merger while the agency continues its case. If approved, the merger could face further delays or even be abandoned. If denied, the merger may proceed, although state-level legal challenges could still pose obstacles.
Top 5 things to watch in markets in the week ahead
The upcoming week in U.S. markets will be pivotal, with Nvidia's earnings report set to test investor enthusiasm for AI, and key inflation data expected to influence rate cut expectations. Nvidia's performance will be closely watched, especially as its stock has significantly contributed to the S&P 500's gains this year. The Federal Reserve's preferred inflation gauge, the PCE price index, will also be released, with Fed Chair Jerome Powell hinting at possible rate cuts. In Europe, inflation data will guide the ECB's rate decisions, while Australia's figures might signal easing inflationary pressures. Additionally, gold continues to surge amid global uncertainties, though caution is advised as markets may correct.
Nestle to keep Health Science unit after CEO's exit, chairman tells paper
Nestlé intends to retain its Health Science unit, according to Chairman Paul Bulcke, despite speculation from analysts that the division could be sold in the medium term. Bulcke emphasized the sector's promise and societal benefits in an interview with NZZ am Sonntag. This statement follows the recent announcement that CEO Mark Schneider will be replaced by company veteran Laurent Freixe. Although analysts at ZKB speculated that selling the Health Science unit might be welcomed by investors, Bulcke denied that Schneider's departure was influenced by the company's declining share price, which has been under pressure since May 2023.
