Economy Gears Up for August Inflation Figures: Stock Market Updates Today

The tech world is abuzz with anticipation as Apple prepares to unveil its new iPhone models, and Klarna gears up for its initial public offering (IPO).

Apple's New iPhone Models

Apple is expected to introduce four new iPhone models, with the new iPhone 17 Air (replacing the Plus model) taking center stage. The new models are rumoured to feature camera upgrades, smaller bezels, new processors, and new colours. The focus on pricing is significant, with no increases expected following President Donald Trump's suggestion that Apple is safe from tariffs.

The Mega-Cap Spotlight

The mega-cap spotlight this week turns to Apple, with Wall Street expecting sales growth in phones to accelerate next year. Last week, the Magnificent 7 mega-caps generated solid returns, with chipmaker Broadcom reporting solid earnings. However, Apple (AAPL) was among the bottom four Dow Jones stocks closing in the red, despite CEO Tim Cook's promise of an 'awe-dropping' event for the iPhone maker on Tuesday.

Angelo Zino's Predictions

Angelo Zino, CFRA Research analyst, has reiterated his Buy rating and his $261 12-month target price for AAPL stock on the eve of its hardware event. Despite stocks trading near new highs, Chris Larkin, Managing Director at E*TRADE from Morgan Stanley, has noted that there might be a crack in the market's 'bad news is good' mentality.

Klarna's IPO

Klarna, a Swedish buy now, pay later company, is leading the biggest IPO week since 2021. The company, led by CEO Sebastian Siemiatkowski, aims to sell 34.3 million shares at $35 to $37 per share to generate proceeds of approximately $1.1 to $1.3 billion. If the IPO comes off at these levels, KLAR stock would have a market cap of approximately $14 billion.

Market Indicators

As of Monday's closing bell, the Dow Jones Industrial Average had added 0.3%, the S&P 500 was up 0.2%, and the Nasdaq Composite had risen 0.5%. The Federal Open Market Committee is expected to cut the federal funds rate at its next meeting, with the probability of a 25 basis points cut being 88.2%. A tepid August jobs report suggests a major upside surprise in this week's inflation data may be needed to prevent a Fed rate cut next week.

Economic Growth and Tariffs

The focus has shifted from the pressure of tariffs on prices to their impact on economic growth. Markets may be less inclined in the near term to shrug off additional signs of a slowing. The Producer Price Index (PPI) and the Consumer Price Index (CPI) will be released this week, providing insights into the current state of inflation.

IPOs Scheduled

Klarna's IPO is on track for Wednesday. Other IPOs scheduled for this week include Figure (FIGR), Gemini Space Station (GEMI), Legence (LGN), Via Transportation (VIA), and Black Rock Coffee (BRCB) on Thursday and Friday.

This week promises to be an exciting one for both tech enthusiasts and investors, with Apple's new iPhone models and Klarna's IPO set to make waves in the tech sector. Stay tuned for more updates as these events unfold.