Cisco to release Q3 earnings on May 15; analysts expect lower EPS and revenue amid focus on key business segments, acquisitions, and future outlook.Cisco Systems Inc. (NASDAQ: CSCO), a global leader in networking and communication equipment, will  on May 15, 2024, following the close of market trading. As a bellwether for the technology industry, Cisco’s financial performance and outlook are closely watched by investors and analysts alike, as they provide valuable insights into broader sector trends and the company’s strategic direction. Analysts Expect Cisco to Report $0.70 EPS in Q3, Lower than Previous Year’s Equivalent QuarterMarket analysts have tempered their expectations for Cisco’s third-quarter results. The consensus earnings per share () forecast is $0.70, a significant decline from the $0.88 reported in the same quarter last year. Revenue is also projected to experience a downturn, with analysts anticipating a 13.4% year-over-year decrease to $12.62 billion. Recent adjustments to these estimates have further revised the EPS down by 1.5% to $0.83 and revenue expectations to $12.47 billion, representing a 14.4% decline compared to the previous year. What to Look Out for with Cisco’s Q3 EarningsAs Cisco navigates an evolving technological landscape, investors and analysts will closely monitor several key aspects of the company’s performance. One crucial area of interest is Cisco’s product revenue, particularly in emerging segments such as security, where the company has made  to bolster its capabilities in cloud-native networking. Additionally, market observers will keenly await Cisco’s guidance for the fiscal year 2025, seeking insights into the company’s expectations for recovery in its […]

After a fourth straight month of hotter than expected PPI, analysts’ expectations for CPI were tightly ranged around 0.3-0.4% MoM and printed +0.3% MoM (slightly below the 0.4% expected). The YoY headline CPI fell to +3.4% as expected from +3.5% priorSource: BloombergUnder the hood, Services slowed modestly MoM…On a 3m and 6m annualized basis, Energy costs are reaccelerating most…Source: BloombergUsed car and truck prices along with Gas Utility prices plunged on a MoM basis…Core CPI rose 0.3% MoM (as expected) with YoY slowing to +3.6%, also as expected…Source: BloombergCore goods deflation continues while Core Services continue to rise…Source: BloombergCore CPI YoY was 3.6% in April, the lowest it’s been in 3 years. The 1-month annualized fell to the same 3.6% as the YoY, which is why the YoY has been more reliable as a trend measure recently. Housing (rent and OER) contributed 17.5 bps to monthly core CPI inflation in April. While still hot (2018-19 average was 11 bps), it’s the lowest monthly contribution since Dec 2021. And as we show in the chart, YoY housing in CPI is cooling. Virtually all of the excess core CPI inflation YoY–the part of inflation above and beyond Fed target – resulted from housing & auto insurance. Core non-housing services have heated up on a higher frequency basis but haven’t weighing much (yet) on the annual print. Also, while not in core, but extremely important for anyone who eats food: grocery prices actually fell -0.2% MoM in April and are running 1.1% YoY according to the Biden BLS. We doubt anyone […]

Governments worldwide are looking for ways to “ease the real estate crisis” now sweeping much of the developed world. The most popular ideas seek to prop up prices while enabling new buyers to obtain even more credit.After decades of epic malinvestment in real estate, China is at the forefront of the spreading property crisis. Over the past four years, the government has directed a series of add-more-debt-and-stir efforts. However, with rising unemployment and unaffordability at multi-decade lows, buying ability and appetite are not reviving. In the first four months of 2024, China’s home sales fell about 47%, and unsold inventory hovered at an eight-year high.At the April 30 Politburo meeting, China’s 24 most senior leaders said they were looking at ways to “digest” the existing stockpile of homes. This week, news of a new approach emerged: Local state-owned enterprises may be asked to help purchase unsold homes from distressed developers at steep discounts using loans provided by state banks, with many of the properties to be converted into affordable housing.The trouble is that local governments’ debt levels are already high, and bank balance sheets are being eroded by rising bad loans and narrowing margins (below since 2013). Writing down asset values and bad debts seems an inevitable outcome. See:  Bloomberg has learned that China is considering a proposal to have local governments across the country buy millions of unsold homes. This would be one of its most ambitious attempts yet to salvage the beleaguered property market. China Editor James Mayger and Chief North […]

I always revisit and update my analysis and commentary. In a prior post, I pointed out the 2.270 level as an important support for the OMX Iceland 15 Index (OMXI15). As can be seen in the chart below, recently the index tested that level again – this time almost to the penny. However, it is now facing relatively strong overhead resistance. OMXI15 – Daily Chart(Click on image to enlarge)To reiterate what I have said earlier, it would be a very positive sign if the stock price of Marel manages to rise convincingly through 517 ISK per share and stay above that level for the following few days. Marel´s Share Price – Monthly Chart(Click on image to enlarge) I still consider the longer-term trend of the stock price of Alvotech to be up. For the last three days, the price has been riding potential support (see solid brown line). I will re-evaluate my view if the price closes convincingly below 1.784 ISK per share. On the chart, I have drawn in the next possible resistance zone above the current price and the potential areas of support under the current price. Alvotech´s Share Price – Daily Chart(Click on image to enlarge) OMXI All-Share Index Real Total ReturnMy last chart shows the rolling one-year, real total return of the OMX Iceland All-Share Index. Since June 2022, the real rate of return has been negative and has for the most part oscillated between one and two standard deviations below its +12-year average or mean. Its current standing, using April numbers, is -8.2% and up […]

Image Source:   ADI Elliott Wave Analysis Trading Lounge Daily ChartAnalog Devices Inc., () Daily ChartADI Elliott Wave Technical AnalysisFUNCTION: TrendMODE: ImpulsiveSTRUCTURE: MotivePOSITION: Minute wave {iii}.DIRECTION: Upside in Minute {iii}.  DETAILS: Looking for Medium Level at 250$ to be the next strong resistance as we are trading within MG1.  ADI Elliott Wave Analysis Trading Lounge 4Hr Chart,Analog Devices Inc., (ADI) 4Hr ChartADI Elliott Wave Technical AnalysisFUNCTION: TrendMODE: ImpulsiveSTRUCTURE: MotivePOSITION: Wave (iii) of {iii}.DIRECTION: Wave (iii).DETAILS: Volume suggests the bull trend is in place, looking for continuation higher.Analog Devices Inc. (ADI) is exhibiting a strong bullish trend according to the latest Elliott Wave analysis. Here’s a detailed breakdown of the current market scenario based on the daily and 4-hour charts.* ADI Elliott Wave Technical Analysis – Daily Chart*The daily chart for ADI reveals that the stock is in Minute wave {iii}, part of an impulsive move. The next significant level to watch is the Medium Level at $250, which is expected to provide strong resistance. As ADI trades within MG1, this level becomes a critical point for potential price action. Traders should be aware of this resistance zone and monitor the price behavior closely as it approaches $250.* ADI Elliott Wave Technical Analysis – 4Hr Chart*The 4-hour chart complements the daily analysis by highlighting that ADI is in wave (iii) of Minute wave {iii}. The volume analysis suggests that the bullish trend is well-supported, indicating a likely continuation higher. This wave structure confirms the impulsive nature of the current market move, reinforcing the bullish outlook.Technical Analyst : Alessio Barretta