Breakfast News: What To Watch At WWDC
June 9, 2025
| Friday's Markets |
|---|
| S&P 500 6,000 (+1.03%) |
| Nasdaq 19,530 (+1.2%) |
| Dow 42,763 (+1.05%) |
| Bitcoin $104,362 (+2.72%) |
Source: Image Created by Jester AI.
1. New Software and Hardware Expected
Apple (AAPL 0.01%) kicks off its Worldwide Developers Conference (WWDC) 2025 today. A year on from the unveiling of the Apple Intelligence AI platform, investors will look for AI moves to boost the flagging stock – down 19% year to date while the rest in the Magnificent 7 have all gained.
- June 9 to 13 in Cupertino, California: Bloomberg's Mark Gurman predicts AI behind the scenes in battery management and live translation for AirPods. Rumors suggest Apple's large language models could be opened to third-party developers.
- Tim Cook's keynote due at 10am PT: We should see a facelift across all of Apple's platforms, according to Gurman, to bring aspects of the Vision Pro headset to the iOS and macOS user interfaces. Expect a preview of a new, slimmer iPhone 17.
2. Switch 2 Sells Fast
Nintendo (NTDOY 2.84%) smashed sales records for its new Switch 2, after it took top spot as the most-sold game console ever in a 24-hour period. Several sources suggest sales are close to 3 million units. If accurate, that's three times as many as the previous one-day record for Sony's PlayStation 4.
- "Assess the potential impact of tariffs and evolving market conditions": Nintendo had paused U.S. pre-orders on fears a 24% import charge could have pushed the price up from $449.99. But a 90-day tariff pause saved the day.
- Up 100% in five years: Nintendo has been picked as one of our Foundational Stocks for 2025-26 in Rule Breakers. Those are innovative companies with international reach, of reasonable size, and relatively easy to understand.
3. Coming Up: Tech on Deck
GitLab (GTLB 1.27%) will report its fiscal 2026 first quarter Tuesday, following earnings and revenue beats in Q4 2025. The DevSecOps (development, security, and operations) pioneer aims to accelerate innovation using AI tools, said new CEO Bill Staples in May. The stock is lagging the S&P 500 by 49% since its November 2024 Hidden Gems recommendation, but remains a 'Buy.'
- Up 216% in the past five years: Oracle (ORCL +0.17%) posts Q4 earnings on Wednesday. The cloud database specialist just missed Q3 estimates, despite seeing a 23% surge in cloud service revenue.
- A Superscore of 83 in our Moneyball database: Thursday brings a Q2 update from Stock Advisor rec Adobe (ADBE 2.00%), as it joins the pivot to AI to drive future earnings growth. The company beat expectations in Q1, though the stock subsequently dipped after Q2 guidance fell a bit below analyst consensus.
4. Rule Breakers Set to Report This Week
It's Q3 time for Stitch Fix (SFIX 3.46%) Tuesday, after the online personal styling service narrowed losses in Q2 while beating Wall Street guidance on revenue. Focus is on client acquisition and retention as the company expects a year-over-year revenue fall this time.
- "Significant and ill-advised changes": Dave & Buster's (PLAY 4.38%) posts Q1 figures Tuesday. The stock -- on Hold in the service -- is down 18% year to date, after interim CEO Kevin Sheehan spoke of mistakes under previous management. Look for back-to-basics moves.
- Beating the S&P 500 by 170% since May 2024 recommendation: There's optimism over Q1 results from Chewy (CHWY 3.04%) due Wednesday, after we saw a stagnating customer number trend reversed in Q4. Analysts expect further progress with a 7% revenue rise year over year, and a 13% gain in earnings per share.
5. Inflation Swings Into Focus
Further inflation figures are due, with May's Consumer Price Index (CPI) print on Wednesday. It's expected to rise to 2.5% year over year from April's 2.3%.
- Supply side fears: Thursday's Producer Price Index (PPI) is expected to swing to 0.2% inflation over the month, from negative 0.5% the previous month.
- Happier consumers?: A preliminary June Consumer Sentiment update could bring a little hope after it's been declining month by month since the start of the year. May saw the index level at 52.2, with an uptick to 55 predicted.
6. Your Take
The S&P 500 ended Friday just 2% from its all-time high after gaining 1.6% over the week. The Nasdaq ended 2.3% ahead.
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