15% chance of recession

Upcoming Week:

• Wednesday: Investors will get a look at the health of the services industry by way of the ISM Services PMI for August. The Fed will also issue its latest Beige Book – an overview of the U.S. economy thats published only eight times a year

• Thursday: The Labor Department will report how many Americans filed for unemployment benefits. Investors will also get an update on labor market productivity, with the Nonfarm Labor Productivity report

Earnings Calendar

• Tuesday: Zscaler (ZS), Tower Semiconductor (TSEM), GitLab (GTLB), HealthEquity (HQY), & Asana (ASAN)

• Wednesday: UiPath (PATH), C3 AI (AI), Gamestop (GME), Sprinklr (CXM) & American Eagle Outfitters (AEO)

• Thursday: The Toro Company (TTC), DocuSign (DOCU), Restoration Hardware (RH), Smartsheet (SMAR), Braze (BRZE), & John Wiley & Sons (WLY)

• Friday: Kroger Company (KR)

• Less likely recession: Goldman Sachs now sees a 15% chance the US will slide into recession, down from 20% previously as cooling inflation and a still-resilient labor market suggest the Fed may not need to raise interest rates any further (Reuters)
  

• Landmark grain deal denied: Vladimir Putin said Russia won’t rejoin a deal enabling Ukrainian grain to be shipped globally until the West meets its demands to facilitate Russian agricultural exports (AP)
  

• Robinhood buyback: Robinhood (HOOD) has bought back $605.7 million of company stock that had been controlled by Sam Bankman-Fried and was caught up in a contentious ownership fight (Fortune)
  

• No precedent for deficits this large: The federal deficit is projected to roughly double this year, as bigger interest payments and lower tax receipts widen the nation’s spending imbalance despite robust overall economic growth (WP)
  

• Pharma deal to go through: The FTC says it has agreed to end its legal challenge of drugmaker Amgen’s (AMGN) $27.8 billion deal to buy Horizon Therapeutics (HZNP), averting a trial that was to have started this month (WSJ)
  

• Walmart triples down on India: Walmart (WMT) has paid $3.5B to increase its stake in e-commerce platform Flipkart, which has now reached 80% (Silicon Angle)
  

• What’s the point of US sanctions?: Huawei and China’s top chipmaker have built an advanced 7nm processor to power its latest smartphone, a sign Beijing is making early progress in a nationwide push to circumvent US efforts to contain its ascent (X)

• Labor Day labor market reflections (Marty Bent)

• Think you saw a UFO? The Pentagon wants to hear from you (AARO)

• Radioactive wild boar roam central Europe (ZeroHedge)

• OnlyFans Owner Leonid Radvinsky received over $338m in dividends last year (People)

• Will the AirBnB bubble pop the housing bubble? (Of Two Minds)

• Following Elon Musk’s lead, big tech is surrendering to disinformation (Washington Post)

• America is draining its groundwater like there’s no tomorrow (NYT)

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