Wall Street remains uncertain before market this Tuesday, with the S&P 500 and the Nasdaq losing 0.3%. The Dow Jones lost 0.4%. The week will be very lively on the American markets, with obviously the Fed’s monetary meeting and its new status quo almost certain. Last night, Apple’s presentation at the WWDC conference in Cupertino left investors wanting more, as the Apple group detailed its plans in artificial intelligence. Nvidia, for its part, remains volatile on the American market after a tenfold split in its shares. Finally, operators will follow the vote of Tesla shareholders on Thursday on Elon Musk’s very juicy $56 billion compensation package…
On the Nymex, a barrel of WTI crude lost 0.2% to $77.6. An ounce of fine gold rose 0.4% to $2,336. The dollar index rose 0.2% against a basket of currencies.
On the economic front, operators will tomorrow follow the American consumer price index for the month of May (consensus +0.1% compared to the previous month or +3.4% over one year; +0.3% and +3.5% excluding food and energy), the weekly report on US domestic oil stocks, the US budgetary balance, as well as of course the Fed’s monetary press release and Jerome Powell’s press conference.
The CME Group’s FedWatch tool gives a more than 99% probability of a new monetary status quo, leaving rates unchanged between 5.25 and 5.5%, at a 23-year high. The probability of status quo on July 31, after the next meeting, reaches more than 91%. That of a first monetary easing no later than September 18 is around 54%. The very solid US employment report released on Friday further pushed back expectations of monetary easing.
On Wednesday, markets will monitor the Fed’s dot plot, which presents central bankers’ rate expectations in dot graph form.
On Thursday, investors will be attentive to weekly unemployment claims, as well as the producer price index for the month of May. John Williams, head of the New York Fed, will also speak during the day. Finally, on Friday, the markets will follow import and export prices, the American consumer sentiment index from the University of Michigan, as well as a speech from Austan Goolsbee, who heads the Chicago Fed .
Values
Apple lost 1.9% last night at the close on Wall Street and continued its decline after the market. The Apple group was expected around the corner at its WWDC conference in Cupertino. Tim Cook and his teams presented the technology giant’s long-awaited initiative in generative artificial intelligence, called “Apple Intelligence”. This technology will therefore be integrated into the Californian group’s hardware and software tools (iPhone, Mac, Messages, Photos, Mail, etc.). According to the group, this would be a unique offer capable of understanding the user and their data. Later in the fall, AI will be available on Mac, iPad, and iPhone 15 Pro. As expected, the essential development concerns the voice assistant Siri, to which Apple Intelligence will provide notable improvements, becoming more “natural” and “sensitive” according to Apple.
Siri will be able to respond to text requests, but also… use ChatGPT, rather than Apple’s own models. On the social network Elon Musk, head of Tesla, SpaceX and will protect your security and privacy! Apple has no idea what really happens once they transmit your data to OpenAI. They are playing you. Musk has been extremely critical for some time now regarding ChatGPT and the results considered far too “woke” from the AI. This time, the billionaire considers this merger of ChatGPT and Apple “extremely worrying”, in response to an X user comparing the agreement to “an AI Woke Death Star” or “a merger of Coke and Pepsi to create an essential deadly drink.” “Yeah,” Musk also replied on X to a user who said: “Steve is rolling over in his fucking grave.”
Apple said last night that its updated version of Siri was therefore more sensitive to product context. On-screen recognition will allow Siri to understand and act on displayed items. Apple emphasizes Siri’s ability to understand users’ own data. Beyond Siri, devices will be able to prioritize notifications. Writing tools will be able to rewrite or synthesize information. The technology will also make it possible to create generative AI images of people, places (…). Apple says many of its generative AI models will work on the device, although some will need access to the cloud. The firm has developed a new cloud service called Private Cloud Compute. When making a request, Apple Intelligence will determine if it can complete it using on-device processing or if it needs to connect to the cloud. Apple says it will not store any of your information used to respond to Apple Intelligence requests.
Apple. The partnership with OpenAI will provide access to ChatGPT on Siri and other applications. ChatGPT will be available as part of an operating system update later this year. Apple Intelligence will be offered on iPhone 15 Pro/Max, iPad and Mac with M1 or higher processor. However, some fear that these new features will not be convincing enough at this stage to encourage consumers to spend more than $1,000 for a new device.
Nvidia also remains under surveillance, close to historic peaks. The stock has gained more than 20% since the announcement of its split by ten – and remarkable results. Last week at the Computex conference in Taiwan, local star Jensen Huang revealed his group’s mid-term plans and previewed new generations of GPUs for AI, at a pace of a new platform per year. The split by ten of the action was effective Friday evening. Nvidia’s capitalization is now around $3,000 billion, slightly above that of Apple and not far from the world’s largest capitalization, Microsoft… Speculation could also concern the chances of a possible inclusion of the star of AI within the historical Dow Jones index. Indeed, the split of the action now places Nvidia in the race for integration into the DJIA. The file would then follow other “tech” giants such as Apple and Amazon. If included, Nvidia could kick its rival Intel out of the index…
Tesla’s annual shareholder meeting is scheduled for Thursday after the close and must resolve the thorny issue of Elon Musk’s $56 billion compensation package, its chief executive. A negative vote would be very badly received by the multi-billionaire, who suggested that in such a case he could develop his AI projects independently. Thus, the decision of the shareholders will be of capital importance. Robyn Denholm, the president of Tesla, judged that this kind of exceptional package was needed to motivate Musk. Obviously, such compensation, representing approximately 10% of the company’s market capitalization, is unprecedented in the history of American companies. In a survey of around a hundred investors, Morgan Stanley found that the majority believe that approval of the package would increase Tesla shares.
General Motors, the Detroit auto giant, has approved a new $6 billion stock buyback program. A month earlier, the group had already raised its dividend and posted annual prospects higher than expectations. The new buyback program covers more than 10% of the manufacturer’s capital.
Oracle, the American management software giant, will publish its latest quarterly financial results this Tuesday evening, after trading on Wall Street. Caseys General Stores is also announcing this day after closing. Broadcom publishes for its part Wednesday evening, while Adobe reveals its latest figures Thursday, after market.
