Seeking Alphaยท2025-09-12 18:30Company Highlights - Oracle (ORCL) shares surged 76% following its earnings release, despite missing expectations for both earnings and revenue. The company announced four major contracts, leading to a 359% increase in remaining performance obligations, totaling approximately $455 billion [4][5][6] - Adobe (ADBE) reported a slight decline in stock price after beating earnings expectations. Analysts raised concerns about the company's ability to monetize its strong AI adoption, with its digital media unit showing only 11.6% growth in Q3, compared to 12.6% earlier in 2023 [7][9][10] - Broadcom (AVGO) saw a 9% increase in stock price after beating earnings expectations and announcing a significant $10 billion customer for its AI chips, speculated to be OpenAI [12][14] - Nebius (NBIS) experienced a 49% surge following a deal with Microsoft (MSFT) to provide AI infrastructure worth $17.4 billion over five years [14] Retail Sector Insights - Lululemon (LULU) shares dropped 19% post-earnings due to guidance cuts related to tariffs and a recognition of stale product offerings. Analysts noted that the impact of tariff changes was not fully anticipated in the stock price [16][17][18] - The retail sector is facing challenges from new international tariff regimes, with varying impacts on high-end versus low-cost retailers. Higher-end retailers like Macy's have shown resilience, while low-cost retailers like Dollar Tree are more vulnerable to cost increases [19][20][21] Economic Context - Recent job data revisions indicated a downward adjustment of 911,000 jobs, suggesting a weaker job market than previously thought. Inflation remains stubbornly high at around 3% [23][24] - The Federal Reserve is expected to cut interest rates, with a 100% chance of a rate cut anticipated. The market is pricing in potential cuts of 25 to 50 basis points in upcoming meetings [35][36][38] - The IPO market is showing signs of recovery, with Klarna's debut rising 15% initially, although it has since traded below its debut highs. The Renaissance IPO ETF is up 20% year-to-date, indicating investor interest in new offerings [27][29][30]