Inflation puts Fed rate hike on the line

0:00Welcome to Seeking Alpha's Wall Street brunch, our Sunday look ahead to this week's market moving events, along with the weekends, top news and analysis. Hello, today is Sunday September 6th and I'm your host, Kim Khan. This holiday shortened week brings make or break consumer price numbers for this month's fed rate meaning. With a market closed Monday for Labor Day, the August CPI arrives Friday. The MIS expects a 0.4% rise in the headline number, keeping the annual rate at 3.4%. The core rate, X-Food and Energy, is seen rising 0.2%, dipping to 2.4% annually from 2.5. Wells Fargo economists say that while headline inflation remains influenced by the ebbs and flows of the conflict in the Middle East, core inflation remains contained. A hot inflation report could cement an FOMC rate hike later this month. That Chairman Kevin Worsh's hawkish Jackson hole speech spiked odds of a quarter point rise, but President Donald Trump's threat to cease trade with a number of nations if

1:03rates didn't come down made it coin toss. Friday's better than expected rise in payrolls put high gods now at 60%. Seeking Alpha analyst Demar Tokich says the fed is facing late cycle dynamics with a strong labor market and high inflation and should consider inverting the yield curve or hiking above 5%, starting with the September hike. Otherwise, long term rates should spike as inflation expectations de-anchor, which would force the fed to hike even more aggressively due to the 2022-like policy error, he said. On the earnings front, Oracle will give the market another glimpse of hyper-scaler revenue versus CapEx when it reports Thursday. The consensus is for EPS of 174 on revenue of 19.13 billion. As a analyst JD Research says despite infrastructure buildout risks, Oracle software business and multi-cloud AI databases are delivering strong growth and mitigating AI execution concerns. But Oracle Bearapoll Frank says escalating AI LLM fees on consumers and businesses are

2:05prompting users to cut back on queries, raising doubts about the sustainability of Oracle's hyper-scaler strategy. Here's how the rest of the earnings calendar shapes up. GameSop reports Tuesday on Wednesday chewy ways in. GameSays in Adobe join Oracle on Thursday and Crogers do Friday. Also this week, Apple's Wednesday product launch event surprised and shine, maybe it's most significant in nearly a decade. Morgan Stanley and Listeric Woodring says along with predictable product launches, the event will prove to be anything but ordinary. This is because for the first time in 15 years, Tim Cook will not headline the event. CEO John Ternos will lead the company into its first major iPhone form factor change in nearly 10 years, unveiling the much anticipated iPhone fold, or maybe ultra, alongside what are likely to be the broadest and most significant, like for like iPhone price hikes in company history, he said. In the news this weekend, should a greenback equal a loony? President Donald Trump criticized the value of Canada's currency, opening a new front

3:08in an escalating trade dispute between the two neighboring countries. Canada's dollar imbalance with the US is unacceptable, Trump said in a post-on-truth social. It's been that way for years, but no longer. Trump did not specify what he meant by an imbalance or any action his administration might take. The Canadian dollar gives the country's exporters a pricing advantage of the US market and recently traded around 72 US cents. And for income investors, Signagos Exitividend Tuesday paying out September 23rd. HP goes Exitividend Wednesday with the September 9th payout date. And video goes Exitividend Thursday paying out on October 1st. That's all for today's Wall Street brunch. Look for links to stories in the show net section. Don't forget, these episodes will be up with transcriptions at SeekingOpha.com slash WSB. And join the elite community of real investors to an earth great investing ideas. Just head to SeekingOpha.com slash subscriptions.