Relief as US CPI inflation hit its lowest level in more than three years helped US stocks recover from their uncertain start to the week to trade materially higher.
Also drawing plenty of attention this week was the presidential debate between Donald Trump and Kamala Harris. Polling suggested Harris had prevailed in the head-to-head put cryptocurrencies and shares in Trump Media & Technology (DJT:NASDAQ), both seen as market barometers of Trump's chances in November, under pressure.
Shares in health insurance business Humana (HUM:NYSE) were also lower on concern over reforms from any potential Harris administration.
On the flipside renewables stocks, including First Solar (FSLR:NASDAQ), were higher on hopes that if the Democrats hold on to the White House the policy environment for the sector will be more favourable.
Shares in Nvidia (NVDA) bounced back after their recent bout of weakness, while cruise operator Norwegian Cruise Line (NCLH:NYSE) was higher on positive broker commentary.
ORACLE
Up 15% over the past week, Oracle (ORCL:NASDAQ) got investors on side after beating earnings expectations, highlighting how the company has rapidly grown its cloud business while simultaneously partnering with the industry’s major players.
That the stock popped 11% on the day (12 Sep), the first time in over two years that the stock has jumped by double-digits in a single day, speaks volumes for the progress it is making in cloud and AI, aided by upping 2026 guidance at an analyst day later in the week, where it confirmed 2026 revenue of at least $66 billion, higher than prior guidance for $65 billion.
Oracle is now up 55% for the year, trailing only Nvidia’s 147% rally in that span.
KROGER
Grocery chain Kroger (KR:NYSE) topped Wall Street estimates for second quarter sales and profit on Thursday (12 Sep) and raised the lower end of its annual sales forecast.
Shares in the supermarket chain, whose $25-billion mega deal to take over smaller rival Albertsons (ACI:NYSE) is under antitrust review, jumped 6.5% to around $55 taking gains to 20% over the last 12-months.
Grocers have been benefiting from customers increasingly making food at home rather than dining out at restaurants and fast-food outlets.
Chairman and chief executive Rodney McMullen said: ‘We are growing households and increasing customer visits by offering a compelling combination of affordable prices and personalized promotions on great quality products, all through a unique seamless experience.’
Adjusted EPS (earnings per share) was $0.93, beating consensus estimates of $0.91 as same store sales growth came in at 1.2% compared with Street forecasts of 0.93%.
The company confirmed full year EPS forecasts in the range of $4.3 to $4.5 and adjusted operating profit between $4.6 billion and $4.8 billion.
BOEING
Problems just keep piling up for the Seattle plane maker after factory workers on the West Coast rejected a new pay offer and voted by 96% to walk out as of midnight Friday Pacific Time.
The strike by the IAM (International Association of Machinists) union means 33,000 employees will down tools at a time when more than half a dozen airlines – including American (AAL:NASDAQ), Southwest (LUV:NYSE), United (UAL:NASDAQ) and Ryanair (RYAAY:NASDAQ) – are clamouring for deliveries.
Analysts flagged likely negative knock-on effects on European parts suppliers such as Italian firm Leonardo (LDO:BIT) and UK company Senior (SNR).
The pay offer included a 25% guaranteed wage increase over four years, making it the biggest pay hike the firm has ever offered at a time when it is under severe financial strain.
The last strike by the machinists’ union in 2008 lasted more than 50 days, so the onus is on new chief executive Kelly Ortberg, who took over the top job last month, to bring this dispute to a speedy conclusion.
