The markets are always forward-looking but they are peering particularly far ahead right now\u2014well into 2024.<\/p>\n
That\u2019s because the focus is shifting toward when the Federal Reserve will begin cutting interest rates. The forward projections from the central bank\u2019s September meeting Wednesday are likely to be of more interest than the decision itself, as investors focus on the path of interest rates next year.<\/p>\n
If the Fed doesn\u2019t intend to hike once more in 2023, it\u2019s perhaps more likely to be conveyed through messaging ahead of its November meeting rather than in Wednesday\u2019s dot plot, which shows where officials see rates going. <\/p>\n
But there\u2019s more scope for change to projections for 2024. In June, Fed officials penciled in 100 basis points of cuts for next year. <\/p>\n
The Organisation for Economic Development (OECD) said Tuesday it sees U.S. economic growth slowing to 1.3% in 2024, from 2.2% this year. However, that was an improvement on the June forecast as the U.S. economy has proved \u201cunexpectedly resilient\u201d to the rise in interest rates.<\/p>\n
Slowing growth gives room for rate cuts but the resilience points to the Fed keeping rates higher for longer into next year.<\/p>\n
The problem with looking so far into the future is that everything is liable to change. Higher oil prices threaten to scupper the Fed\u2019s battle against inflation, the success of which will determine the start of rate cuts. The economy could also continue to defy elevated rates.<\/p>\n
All anyone wants to know is when will the cuts begin to make borrowing cheaper\u2014while some clues will soon appear, a definitive answer is some way off.<\/p>\n
\u2014Callum Keown<\/em><\/p>\n *** Join Barron\u2019s associate editor for technology Eric Savitz today at noon when he speaks with David Readerman, founder and portfolio manager of Endurance Capital, on the outlook for technology stocks. Sign up here.<\/em><\/p>\n Try your hand at this morning\u2019s Barron\u2019s Daily crossword puzzle and sudoku games. For all games, including a digital jigsaw based on the week\u2019s cover story, click here.<\/em><\/p>\n Central Bank Could Get Tripped Up by Energy Prices, Congress<\/h2>\n The Federal Reserve is widely expected to hold interest rates steady today, but investors will be paying more attention to what Chairman Jerome Powell says at his afternoon press conference and at the new set of economic projections the policy makers will release for inflation, unemployment, and economic output.<\/p>\n What\u2019s Next:<\/strong> A data-dependent Fed could also get tripped up by Congress, which is again squabbling about government funding. A shutdown on Oct. 1 could temporarily halt the release of the September jobs report, September CPI data, and third-quarter GDP estimates, all scheduled for release in October.<\/p>\n \u2014Liz Moyer and Megan Cassella<\/em><\/em><\/p>\n \n Walt Disney What\u2019s Next:<\/strong> Disney Parks has more than 1,000 acres of land available globally for potential development. Disney also plans to nearly double the worldwide capacity of its cruise lines, adding two ships in fiscal 2025, and another in fiscal 2026, and opening a new home port in Singapore.<\/p>\n \u2014Janet H. Cho and Angela Palumbo<\/em><\/p>\n \n Intel What\u2019s Next:<\/strong> Intel\u2019s CFO David Zinsner told investors that channel inventory of data center processors is taking longer to clear than it did for the company\u2019s PC processor business. He said Intel is finding the recovery in the data center business to be \u201ca little bit more delayed.\u201d <\/p>\n \u2014Eric J. Savitz and Janet H. Cho<\/em><\/p>\n Canadian union Unifor said it reached a tentative deal with Ford Motor with just hours before its Tuesday strike deadline. It\u2019s a small sign that auto makers and auto workers can agree. But in the U.S. the United Auto Workers\u2019 Friday deadline to expand its strike still edges closer.<\/p>\n What\u2019s Next:<\/strong> Wedbush analysts led by Dan Ives said the UAW dispute was reaching a \u201cfork in the road\u201d and they feared the strikes could be \u201clong and nasty\u201d for the Detroit auto makers. They cite Tesla as a clear winner because of its nonunion position and that its competitors \u201cnow face mounting costs and complexities in the years ahead.\u201d<\/p>\n \u2014Callum Keown, Janet H. Cho and Al Root<\/em><\/p>\n \n Instacart\u2019s<\/span> What\u2019s Next:<\/strong> In other IPO news, Klaviyo, the Boston-based digital marketing software platform, priced its debut at $30 a share, slightly above the range it set on Monday. It will begin trading today on the New York Stock Exchange under the ticker symbol \u201cKVYO.\u201d<\/p>\n \u2014Janet H. Cho and Eric J. Savitz<\/em><\/p>\n***<\/h4>\n
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Disney Nearly Doubling Investment in Theme Parks, Cruises<\/h2>\n
\n plans to nearly double its spending on its parks, experiences, and products segment to about $60 billion over the next decade, including expanding its theme parks, cruises, and resorts and prioritizing revenue-generating projects, according to a filing with the Securities and Exchange Commission.<\/p>\n\n
\n Comcast
\n is building attractions<\/strong> in Texas and Nevada and is planning a new resort for Orlando, MarketWatch reported.<\/p>\n<\/li>\n
\n Warner Bros. Discovery
\n is adding live sports streaming to its Max platform for an extra $9.99 a month.<\/p>\n<\/li>\n<\/ul>\n***<\/h4>\n
Intel Says Next Generation of PCs Will Run AI<\/h2>\n
\n CEO Pat Gelsinger unveiled plans at a San Jose developer event for \u201cthe AI PC,\u201d the next generation of personal computers capable of natively running artificial intelligence inference applications, which he says will bring \u201cAI everywhere at scale.\u201d<\/p>\n\n
\n Dell Technologies
\n and
\n HP
\n have said AI-capable laptops are coming in 2024, and Intel intends to help them get there<\/strong>. Gelsinger said AI-capable PCs will be enabled by its Core Ultra processor, which will use Intel\u2019s first integrated neutral processing unit.<\/p>\n<\/li>\n
\n Arm Holdings,<\/span>
\n which pioneered reduced instruction set computing (RISC) chips to enhance mobile performance, now supports Intel\u2019s OpenVino open-source inferencing platform. <\/p>\n<\/li>\n***<\/h4>\n
Ford Reaches Tentative Deal With Canadian Auto Workers<\/h2>\n
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Instacart Co-Founder Moves to Next Challenge After IPO<\/h2>\n
\n emergence as a publicly traded company means its co-founder Apoorva Mehta is setting off on a new adventure after stepping down as CEO in 2021. The delivery platform\u2019s initial public offering valued Mehta\u2019s 10% holdings as the largest individual shareholder at around $1 billion. <\/p>\n\n
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