This week’s market focus sharpens on three key events: Costco’s upcoming earnings report, Meta Platforms’ annual developer conference highlighting AI advancements, and a critical summit between Presidents Trump and Xi. Investors are anticipating insights into consumer spending at Costco amidst inflation, Meta’s strategic direction in AI, and potential shifts in U.S.-China trade relations following the high-stakes meeting.
Get ready for a pivotal week in the stock market, packed with potential catalysts including President Trump's meeting with Chinese leader Xi Jinping, a key earnings report from Costco, and Meta Platforms' annual developer conference.
1. Costco's Earnings: Value in Inflationary Times
Costco (COST) is set to release its quarterly earnings on Thursday evening, with investors keenly watching for profit figures, membership growth, and retention trends. In an inflationary environment, Costco's value-driven, bulk-selling model positions it favorably as consumers seek more bang for their buck. Analysts are also on the lookout for a potential 'special dividend' announcement, a move that has historically occurred every two to three years. The last special dividend was paid in January 2024, and expectations are for one worth roughly $22 per share. Wall Street forecasts earnings of $6.53 per share on sales of $94.8 billion.
2. Meta's AI Frontier at Connect Conference
Meta Platforms (META) will host its annual developer conference, Meta Connect, beginning Wednesday, with CEO Mark Zuckerberg's keynote at 7 p.m. ET expected to heavily feature Artificial Intelligence. Expect updates on the company's Muse Spark family of AI models and their integration into product offerings. Meta's recently launched Muse agentic AI application is of particular interest, and the company's strategy for strengthening user engagement across its apps and providing tools for developers will be crucial for near-term AI investment returns. Progress on Ray-Ban smart glasses and a preview of a new mixed-reality headset are also on the agenda.
3. Trump-Xi Summit: Trade, Tariffs, and Geopolitics
President Trump's summit with Chinese President Xi Jinping in Washington on Thursday is a major geopolitical event with significant market implications. Investors will be closely monitoring any shifts in diplomatic stances or trade concessions, especially concerning the tariff truce set to expire on November 10. The U.S. aims to reduce the substantial trade deficit, with Boeing aircraft purchases a recurring topic. Artificial intelligence development and regulation are also expected to be hot topics, as are discussions regarding crude oil supplies and the sensitive issue of Taiwan. The meeting occurs amidst a growing global debate on AI safety and regulation, with differing views on the pace of development.
This Week's Economic Calendar
- Monday, Sept. 21: No major events or data releases.
- Tuesday, Sept. 22: Before the bell: AutoZone (AZO), MillerKnoll (MLKN), Thor Industries (THO). After the bell: KB Home (KBH).
- Wednesday, Sept. 23: Before the bell: Cintas (CTAS), Paychex (PAYX), General Mills (GIS), Cracker Barrel (CBRL). After the bell: H.B. Fuller (FUL).
- Thursday, Sept. 24: Before the bell: TD SYNNEX (SNX), Darden Restaurants (DRI). After the bell: Costco Wholesale (COST). 8:30 am ET: Initial jobless claims. 10:00 am ET: New home sales.
- Friday, Sept. 25: No major events or data releases.
(Note: Specific dates and times are for the context of the original article's publication and may not reflect current dates.)
