Adobe’s AI Art
Adobe (ADBE) is set to report its latest earnings announcement on Thursday. With AI dominating the discussion around many recent earnings reports, there’s a decent chance Adobe will spend the bulk of the call touting Firefly, its latest tool for creating AI art.
Adobe’s graphic design and editing tools like Photoshop and InDesign have been the industry standard for years. Following the release of AI image tools like Midjourney and OpenAI’s DALL-E, there was some concern Adobe’s tools would become outdated. But Adobe was quick to respond with Firefly.
Like the aforementioned tools, Firefly lets users instantly create images from text descriptions. But it differentiates itself by being trained exclusively on Adobe Stock images. This means that it’s safe for commercial use and users don’t have to worry about accidentally violating a copyright.
Firefly has already been rolled out to beta users, who have generated over 200 million images in the three months since. Adobe has yet to announce the official launch date of Firefly, but may well do so on Thursday. Tune in this week for that, as well as the following notable reports.
Economic Data
Today, the US government will offer investors a look into its monthly budget. In April, the government operated at a surplus of $176 billion, its first oversupply since April 2022.
Tomorrow, investors will receive the monthly inflation update for May. As of April, the core inflation rate sat at 5.5%, a 0.1% decrease from the month before.
Wednesday will be a widely-watched day, as the Federal Reserve is set to announce its latest interest rate decision. After raising interest rates for 10 months straight, the market is pricing in around a 70% chance the Fed will hold off on a rate hike for June.
Thursday will be the busiest day of the week, as investors digest the previous day’s decision, along with a flurry of economic reports to be released. These include retail sales, import prices, export prices, industrial production, and business inventories.
On Friday, the week will close out with speeches from two members of the Federal Reserve, Chris Waller and James Bullard. Their comments will give further context to the Fed’s June policy decision, and investors will look for early clues as to the central bank’s plans for July.
Earnings Data
Today, Oracle (ORCL) will kick off the earnings week by giving investors an update on its business. Last quarter, the software company reported quarterly earnings growth of 48%, driven by its two cloud businesses, infrastructure and applications. With the widespread adoption of generative AI, the need for cloud computing has only accelerated since this report. Investors will be eager to see the impact that the AI wave has had on Oracle’s top- and bottom-lines.
Tomorrow, Iteris (ITI) will offer an update on its business. Investors will tune in to see how the changing transportation landscape has impacted the California-based company, which uses information technology and digital image processing to enhance driver safety. Last quarter, Iteris posted revenue of $40.7 million, up 27% year-over-year.
On Wednesday, Anterix (ATEX) will report its quarterly earnings to investors. They will look to hear more about the private broadband company’s recent partnership with the Lower Colorado River Authority.
On Thursday, Kroger (KR) will report on its sales from the past quarter. Investors will be eager to hear the latest on its merger with Safeway-owner Albertsons (ACI), which is being held up by regulators. If the merger is successful, it will create a grocery store conglomerate with 5,000 stores in 48 states.
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