More Rate Hikes, Apple Dominance, Apple Event, GME Earnings & More!

Bank of Canada Expected to Hike Rates Further

"The Bank of Canada is set deliver a fourth consecutive outsized interest-rate hike to slow the nation’s economy and drag inflation down from four-decade highs.

All 31 economists surveyed by Bloomberg expect policy makers led by Governor Tiff Macklem to raise the benchmark overnight rate by at least 50 basis points, and most say it will be 75 basis points. That would bring the policy rate to 3.25 per cent, the highest among major advanced economies. 

A 75-basis-point hike Wednesday would leave Canada with its highest policy rate since 2008, and bring borrowing costs to a level that will actively slow economic growth. (The so-called neutral range for rates, which neither stimulates nor restricts activity, is estimated to be between 2 per cent and 3 per cent.)" read more on BNN here 

Breaking Thoughts: Most major equity markets are already down 20-30% this year on the back of rapidly rising interest rates and uncertainty about inflation. Ongoing rate hikes heighten the risk of recession as well as further drops in stock values as investors flee to higher yielding bonds and even GICs.

As we've said many times this year investors need to tread carefully in uncertain times, but be mindful that changes in the geopolitical situation (while seemingly unlikely at present) could cause a sudden shift. Such as, alleviate energy prices, reduce inflation along with supply chain challenges, which would eliminate the need for steeper rate hikes to tame inflation.  

iPhones now 57% of US Market, with Apple's iPhone 14 Event This Week

"Most likely it’s an Apple (AAPL) made iPhone, which for the first time has surpassed other smartphones that use Android operating system.

According to analytics compiled by Counterpoint Research, there are now more iPhones in use in the U.S. than any other type of smartphone, including any that use Alphabet (GOOGL) -owned Google’s Android operating system and apps.

Specifically, the iPhone overtook the entire Android ecosystem in June to claim 50% U.S. market share, allowing the tech giant to achieve its highest-ever share of the American smartphone market since the iPhone debuted in June 2007.

It’s all excellent news for Apple, which is set to reveal its latest slew of gadgets including the hotly anticipated iPhone 14 and a 14 Max at its 'Far Out' product launch event, scheduled for 10:00 am P.T. in Cupertino, California, on Wednesday. " read more on The Street here 

Breaking Thoughts: Google has been struggling for years with buggy Android software and poor quality hardware. Apple, meanwhile, has added many of Android's most popular software features while maintaining hardware dominance, especially in chips and cameras.

Apple's advantage in chips spans phones, tablets, laptops and desktops with the introduction of its "M" series chips. Enabling better user experiences that competitors can't match. Long term holders of $AAPL can take comfort in the strength of their offering and growing dominant position, even in an otherwise choppy market. 

Major Earnings This Week

Tuesday September 6:
Gitlab (GTLB): Expected Q2 earnings of $-0.23 per share

Wednesday September 7:
American Eagle Outfitters (AEO): Expected Q2 earnings of $0.14 per share
Asana (ASAN): Expected Q2 earnings of $-0.39 per share
GameStop (GME): Expected Q2 earnings of $-0.38 per share
Nio (NIO): Expected Q2 earnings of $-1.15 per share
Thursday September 8:
DocuSign (DOCU): Expected Q2 earnings of $0.42 per share
RH (RH): Expected Q2 earnings of $6.63 per share
Mastercard (MA): Expected Q2 earnings of $2.36 per share

Major IPOs Expected This Week

None

See you next week! 

Learn how to apply news and information into your financial decision making by visiting our Learn Personal Finance guide or check out our easy to use Financial Tools! Best of luck and happy investing to all! 

 

The Market News Reel for this week! Get the most important market news & updates for the week aheadMajor headlines, excerpts from news sources are shown above. "Breaking Thoughts" section is purely our opinion



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