All three major US stock indexes were up in late-morning trading Friday, as oil prices fell and the latest inflation data matched expectations.
The US seasonally adjusted consumer price index rose by 0.4% in August, as expected, and following a 0.1% increase in July, the Bureau of Labor Statistics said Friday. Core CPI, which excludes food and energy prices, rose by 0.3%, faster than the consensus estimate of a 0.2% gain and above July's 0.2% rise. The year-over-year rate for overall CPI stayed at 3.4%, while core CPI slowed to 2.4% from 2.5% the previous month. Following the release, traders priced in about a 90% chance the Federal Reserve's rate-setting committee hikes rates at its next meeting, Bloomberg reported.
In company news, Oracle (ORCL) reported fiscal Q1 adjusted earnings late Thursday of $1.92 per diluted share, up from $1.47 a year earlier and above the FactSet consensus analyst estimate of $1.74. Fiscal Q1 revenue was $19.35 billion, up from $14.93 billion a year ago and above the FactSet consensus of $19.14 billion. For fiscal Q2, the company expects adjusted EPS of $1.85 to $1.93 and revenue growth of 30% to 34%. Analysts polled by FactSet expect EPS of $1.89. For full-year fiscal 2027, Oracle expects adjusted EPS of $8.10 on revenue of at least $90 billion, up from its previous guidance of adjusted EPS of $8.05. Analysts expect $8.07 EPS on revenue of $89.66 billion. Oracle shares were up 0.3% around midday.
Microsoft (MSFT) intends to more than triple its global data center capacity to over 38 gigawatts in 2032, Bloomberg reported late Thursday, citing people familiar with the plans. Those plans could change as server farms take years to develop, while evolving customer preferences and new technology could reset current assumptions, according to the report.
Separately, Microsoft-backed OpenAI is considering slowing development of advanced AI and hopes other AI companies do the same, Bloomberg reported Friday, citing people familiar with the matter. Lastly, OpenAI, Nvidia (NVDA), Oracle and Cisco (CSCO) are involved in a data center in the United Arab Emirates that will likely be revised following attacks by Iran, Reuters reported Friday, citing people familiar with the matter. Microsoft shares were up 0.4%, while Nvidia and Cisco shares were up 0.7% and 3.4%, respectively.
Adobe (ADBE) reported fiscal Q3 adjusted EPS late Thursday of $6.13, up from $5.31 a year ago and above the FactSet consensus of $6.08. Fiscal Q3 revenue was $6.76 billion, up from $5.99 billion a year ago and above the FactSet consensus of $6.69 billion. For fiscal Q4, the company expects adjusted EPS of $6.30 to $6.35 on revenue of $6.80 billion to $6.85 billion. Analysts expect EPS of $6.31 on revenue of $6.84 billion. Adobe expects full-year adjusted EPS of $24.45 to $24.50 on revenue of $26.576 billion to $26.626 billion, up from its prior guidance of adjusted EPS of $24.35 to $24.45 on revenue of $26.5 billion to $26.6 billion. Analysts expect EPS of $24.42 on revenue of $26.539 billion. Adobe shares were down 0.4%.
Kroger (KR) reported fiscal Q2 adjusted EPS Friday of $1.09, up from $1.04 a year earlier and above the FactSet consensus of $1.06. Fiscal Q2 sales were $34.62 billion, up from $33.94 billion a year ago but below the FactSet consensus of $34.64 billion. The company expects full-year identical sales, excluding fuel, to rise 0.2% to 0.8%, lower than its prior guidance of 1% to 2% growth. Kroger shares were up 2.3%.
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