It has been an eventful conference season for companies big and small. Key updates from a range of industries, including banks and semiconductors, have kept investors on edge. It comes as volatility has kicked up right on cue to begin September, but the markets hit record highs amid other, more macro events.
The Time Has Come for Rate Cuts and ‘Recalibration’
Alas, Chair Powell and all but one of the Fed’s voting members opted for a “double cut.” It may begin a protracted easing cycle that could last through next year. That is likely to have major implications for those in the C-suites of multinational corporations and at the desks of small businesses.
- Lower borrowing costs and less impressive savings account rates may lead to a protracted easing cycle
- Investment projects might face a lower hurdle rate in terms of the cost of capital
- Small-cap companies could benefit as they are more prone to swings in short-term and floating interest rates
Here’s a twist: Lower rates might be a headwind for big firms with pristine balance sheets. With high cash on hand and low debt, they were net beneficiaries of higher Treasury yields. The same goes for wealthy investors holding cash and bonds – loftier rates, bigger interest income. Less return on cash is now the reality.
New Year, New Vibes
Put it all together, and 2025 will likely look and feel different than 2024. Portfolio managers, traders, and investors can get important clues before we call it curtains on this year, however. Through early December, there will be scores of important Analyst Days and Capital Markets Days hosted by bellwether companies.
October and November Feature Many Analysts & Capital Markets Day Events
Source: Wall Street Horizon
Analyst Days are put on to engage shareholders, analysts, and the media. They provide a platform for CEOs and CFOs to present updates on business strategy, financial performance, and upcoming growth plans. There’s often a Q&A session where analysts and reporters can probe company executives.
Capital Markets Days are similar, but they usually target a broader audience, including institutional investors and bondholders. Mutual funds, hedge funds, and the like, attend to learn about a firm’s specific financial goals and the goings on across business segments or geographic regions. Both event types are meant to provide clarity to stakeholders.
Let’s dig into a few notable companies with upcoming Analyst or Capital Markets Days lined up as we enter the home stretch of 2024.
Southwest Airlines
Airlines continue to struggle with industry challenges and changing traveler preferences. The so-called “revenge travel” period is long gone, but individuals, families, and business travelers are flying the friendly skies at a record pace, at least according to TSA checkpoint data. The Q2 earnings season highlighted fundamental concerns, though. An oversupply of seats resulted in some US airlines announcing reductions of capacity through year-end.
Southwest Airlines (NYSE:) is also slated to present at the Mobile World Congress MWC Las Vegas conference that begins on Tuesday, October 8 and it has a confirmed Q3 earnings date of Thursday, October 24 BMO.
Apollo Global Management
While struggles are ongoing for Airlines, asset management looks to be having a moment. This year’s stock and bond market rallies have generally resulted in strong profits for both traditional managers and those in private equity, including Apollo (NYSE:). Dealmaking expectations are high for 2025 and beyond as well. Year to date, APO is higher by 28% compared with a 19% total return in the S&P 500.
APO’s next earnings date is unconfirmed for Wednesday, October 30 BMO.
General Motors
The Automobile Manufacturers industry has been particularly uncertain this year. Falling new and used vehicle prices and consumer preference shifts away from EVs have meant volatility for a handful of large automakers. However, General Motor’s (NYSE:) stock has returned close to 40% year to date.
Will the same optimistic tone be voiced on October 8 at GM’s Analyst Day? Be sure to log in and find out. The company also presents at the FedEx (NYSE:) Forward Service Provider Summit that begins on October 1 and it has an unconfirmed Interim Sales update on October 2 followed by a Q3 earnings date of Tuesday, October 22 BMO (confirmed).
Major Analyst and Capital Markets Days Through November
Source: Wall Street Horizon
The Bottom Line
Analyst and Capital Markets Days can offer specific insights as to the state of a company’s fundamental operations and industries writ large. Just as the markets have had broad market impacts, so too might some of the many corporate events on the docket through November.
Analysis:
The article highlights the recent Fed decision for a double rate cut and its potential impact on various industries. It emphasizes the importance of upcoming Analyst and Capital Markets Days for gaining insights into companies’ performance and future strategies. The examples of Southwest Airlines, Apollo Global Management, and General Motors provide a glimpse into the challenges and opportunities faced by different sectors. Overall, the content serves as a valuable resource for investors seeking to understand the evolving market landscape and make informed decisions for their portfolios. Title: The Ultimate Guide to Making Smart Investment Choices in 2021Introduction:
As the world’s top investment manager, I have seen countless market trends come and go. In today’s fast-paced financial landscape, it is crucial to make informed decisions to secure your financial future. In this comprehensive guide, I will share my insights on how to make savvy investment choices in 2021.H2: Building a Strong Investment Portfolio
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Research and Analysis:
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Analysis:
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