Apple’s WWDC, Elon Musk’s Tesla payday, and tech earnings: What to watch in the markets this week

The stock market had a mixed performance last week, as the U.S. economy added more jobs than expected, but the unemployment rate rose to 4%, breaching that level for the first time since January 2022. Investors are doubtful about the Fed’s interest rate cuts, and it appears that rates will stay steady at 5.25% to 5.50% for some time. Meanwhile, the European Central Bank (ECB) and the Bank of Canada have lowered their interest rates.

On that note, let’s explore the upcoming eventful week in detail:

Apple’s Worldwide Developer Conference will focus on AI

With Apple’s annual Worldwide Developers Conference starting on Monday, investors are eagerly anticipating the company’s response to the artificial intelligence boom. A partnership between Apple and OpenAI is reportedly in the works to integrate ChatGPT directly into the iPhone’s operating system.

The WWDC is a software-focused event, so investors may not hear much about the next iPhones, but Apple fans are expecting to see new AI capabilities integrated into iOS. The event can be viewed on Apple’s website and YouTube channel. The event will end on Thursday.

Goldman Sachs’s annual global healthcare conference

Goldman Sachs’s 45th Annual Global Healthcare Conference will be held at the Loews Miami Beach Hotel in Miami Beach, Florida, from June 10 to June 13, 2024. Executives from the healthcare industry, such as Neogen Corporation, Replimune Group, RadNet, Merck, and others, will attend the conference.

Eli Lilly executives, including the head of the drug maker’s Diabetes and Obesity division, will speak on Monday. Recently, the company announced a record-breaking investment in its weight loss drug Zepbound of $5.3 billion.

Earnings to watch: Oracle, Broadcom and Adobe

This week, tech companies including Oracle, Broadcom, and Adobe will release their earnings reports.

The stock of software giant Oracle has gained 17% throughout this year and last year. On Tuesday, June 11, the company will release its fourth-quarter earnings report. According to Zacks Investment Research, the consensus earnings per share (EPS) forecast for the quarter is $1.34. The company reported earnings of $1.35 per share for the same quarter last year.

On Wednesday, semiconductor manufacturer Broadcom is expected to report earnings after the bell. The company’s share price has increased 27% this year and 79% in the past year. Zacks Investment Research predicts earnings per share for the quarter to be $8.16. In the same period last year, EPS was $9.51.

So far this year, Adobe’s share price has dropped nearly 22%. Increasing competition led Adobe to introduce AI-powered, text-based video editing software. Adobe will release its second-quarter earnings report after the market closes on Thursday. According to Zacks Investment Research, the consensus EPS forecast for the quarter is $3.54. In the same quarter last year, EPS was $3.04.

Tesla shareholders will vote on how much Elon Musk should be paid

On Thursday, Tesla shareholders will be able to decide the future of the world’s largest electric vehicle company. Both large and small investors will vote on whether Elon Musk deserves a $46 billion payday. In the event that shareholders reject Musk’s compensation, he could leave the company, Tesla board chair Robyn Denholm recently suggested.

Will the EU impose a tariff on electric vehicles?

At local time on Monday, the European Commission is set to announce whether it will impose tariffs on electric vehicles from China. This decision could significantly impact EU climate goals and the market for Chinese exports.

This comes after President Biden announced last month that US tariffs on certain electric vehicle imports would increase fourfold, potentially up to 100%, to prevent Chinese automakers from saturating the market with inexpensive cars.