Yesterday we had a “Weekly Session with Loui”, our Head of Research discussed about the outlook of the FOMC meeting and Apple results preview that will be released on the 4th of May 2023 after the US market close.

You may replay the live stream on the Youtube channel to learn more details:

YouTube: Mplus Online TV

Loui mentioned 2 pieces of data that are important to look at before understanding which directions the Fed will be taking after this May’s FOMC.

Firstly, we noticed that the US GDP is still in the expansionary mode at 1.1% in 1Q23 vs. 2.6% in 4Q22. As it is not heading into negative territory yet, we believe the Fed may not turn too dovish for rate cut actions.

Secondly, the CPI and PCE data peaked during mid-2022 and declined until the latest readings, which means the Fed’s actions over the past few meetings have translated to positive outcomes in tackling the inflationary pressure. Since inflation is heading lower, the Fed may not need to be too aggressive in its monetary policies over the near term.

Some of the product line-ups that may be seen throughout 2H23 include:

(i) Jun-2023 – anticipating the AR/VR headset, which may cost around USD 3k;

(ii) Sep-2023 - expecting iPhone 15 & 15 Pro and Apply Watch 9;

(iii) Late-2023 – awating Mac Pro with M2 Ultra chip.

Hence, he believes that it may continue to beat the Bloomberg analysts’ consensus net profit of USD 22.65 bn. Meanwhile, the Bloomberg estimate target price is USD 172.58.

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