This week, investors will be closely watching three major events: Costco’s upcoming earnings report, which is expected to highlight strong membership trends amid inflation; Meta Platforms’ annual developer conference where AI advancements will be a central theme; and the crucial summit between Presidents Trump and Xi, which could impact global trade relations and tariff policies.
These developments, coupled with key economic data releases and corporate earnings, are poised to create significant market volatility and present both opportunities and challenges for investors navigating the current economic landscape.
Top 3 Market Movers This Week: Costco Earnings, Meta's AI Push, and the Trump-Xi Summit
Investors are bracing for a pivotal week as key events are set to shape market sentiment. From significant corporate earnings reports to high-stakes geopolitical discussions, several factors demand close attention.
1. Costco's Quarterly Performance
Costco Wholesale (COST) is set to release its quarterly earnings on Thursday evening, with analysts anticipating earnings per share of $6.53 on sales of $94.8 billion. While monthly sales figures are a regular update, the focus for this report will be on profit margins, membership growth, and retention trends. The current inflationary environment, which often prompts consumers to seek value, bodes well for Costco's membership-based, bulk-selling model. A significant point of interest for investors will be the potential announcement of a special dividend. Historically, Costco has distributed these dividends every two to three years, with the last one in January 2024. Analysts estimate a potential payout of around $22 per share, making this a key area to watch.
2. Meta Platforms' Annual Developer Conference
Meta Platforms (META) will host its annual developer conference, Meta Connect, beginning Wednesday, with CEO Mark Zuckerberg's keynote address scheduled for 7 p.m. ET. Artificial Intelligence is expected to dominate the agenda, with advancements in Meta's Muse Spark family of models and their integration into product offerings likely to be detailed. The recently launched Muse agentic AI application is of particular interest, and updates on its performance and future plans are anticipated. Strengthening engagement across Meta's family of apps and providing developers with enhanced tools are crucial for near-term AI investment returns. Additionally, updates on the progress of Meta's Ray-Ban smart glasses and a preview of a new mixed-reality headset are also on the radar.
3. The Trump-Xi Summit
President Donald Trump is set to host Chinese leader Xi Jinping in Washington on Thursday, a meeting that carries significant implications for global trade and diplomacy. Investors will be closely monitoring any shifts in diplomatic posture or trade concessions. A primary concern is the extension of the tariff truce, which is due to expire on November 10th. The U.S. is also looking to address the trade deficit, with particular attention on potential aircraft purchases from Boeing. Artificial intelligence is expected to be a central topic of discussion, as China aims to narrow the technological gap with U.S. companies. The summit occurs amidst growing discussions on AI regulation, with calls for a slowdown in frontier model development. Other critical geopolitical issues that may be addressed include the war in Iran and its impact on crude oil supplies, as well as the sensitive topic of Taiwan and its role in the global semiconductor supply chain.
Economic Calendar Highlights:
- Tuesday, Sept. 22: AutoZone (AZO), MillerKnoll (MLKN), Thor Industries (THO) before the bell; KB Home (KBH) after the bell.
- Wednesday, Sept. 23: Cintas (CTAS), Paychex (PAYX), General Mills (GIS), Cracker Barrel (CBRL) before the bell; H.B. Fuller (FUL) after the bell.
- Thursday, Sept. 24: TD SYNNEX (SNX), Darden Restaurants (DRI) before the bell; Costco Wholesale (COST) after the bell. 8:30 am ET: Initial jobless claims; 10:00 am ET: New home sales.
Disclaimer: The information provided is for informational purposes only and does not constitute financial advice. Investing involves risk, and past performance is not indicative of future results.
