Oracle reports Monday, with expectations focused on its growth in cloud computing. Analysts are optimistic, projecting potential upside in this strategic segment. Meanwhile, Adobe’s report on Wednesday follows a tepid revenue forecast last quarter, but the company’s ongoing AI integration efforts remain a bullish narrative. Analysts estimate earnings of $4.67 per share, up 9.4% year-over-year (YoY), on $5.5 billion in revenue, reflecting a near 10% YoY growth.
Broadcom, which reports Thursday, remains a tech standout, posting a 54% total return year-to-date. Analysts expect $1.39 in earnings per share (+25.2% YoY) on $14.1 billion revenue (+51.3% YoY), driven by AI and networking divisions. Additionally, its VMware acquisition is showing traction, bolstering future growth. A strong report could reinforce optimism in the semiconductor sector, a key Nasdaq driver.
Costco Faces Retail Sector Challenges
Costco’s earnings, expected later in the week, will provide clarity on consumer spending trends amid economic uncertainty. The retailer has tempered expectations for holiday sales due to the late Thanksgiving calendar, potentially muting fourth-quarter growth. However, stable demand for staples may shield Costco from broader retail sector weakness.
Market Forecast: Expect Mixed Reactions Across Indexes
The Nasdaq, heavily influenced by tech names like Adobe and Broadcom, may see gains if these companies deliver robust results. The Dow, with consumer-centric names like Costco, could remain range-bound if muted retail growth continues. The S&P 500 will likely hinge on broad-based results, with Oracle and GameStop’s outcomes influencing investor risk sentiment.
While tech earnings suggest a bullish tilt for the Nasdaq, cautious guidance from retailers could temper broader market enthusiasm, keeping the S&P 500 and Dow in a consolidation phase. Traders should prepare for sector-specific volatility and adjust strategies accordingly.
More Information in our Economic Calendar.
