Cisco and Brinker earnings, Fed commentary: What to Watch
In the morning, Brinker (EAT) will report its fourth quarter earnings. Cisco (CSCO) will release fourth quarter results in the afternoon, with its 2025 forecast in focus among investors.
Richmond Fed President Tom Barkin will be speaking in the morning, while Chicago Fed President Austan Goolsbee and Atlanta Fed President Raphael Bostic will deliver remarks in the afternoon.
To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime.
Time now for What to Watch Wednesday, August 13th. Starting off on the earnings front, we'll be getting some more reports on Wednesday from Brinker International and Cisco. Cisco announcing results for the fourth quarter after the market close. The company's 2026 forecast will be in focus for investors when it reports Q4 earnings. Analysts expecting strong demand for its AI related products, which could push sales through the top end of its fourth quarter guidance. The company's four to six percent revenue growth target is likely to remain unchanged. And also, taking a look at Brinker, the global restaurant company reporting fourth quarter earnings on Wednesday. Analysts forecasting strong sales growth in Q4, driven by strong performance at its flagship chain Chili's. And moving over to the Federal Reserve, we'll be getting another round of commentary from multiple Fed presidents. On Wednesday, investors will be closely listening for any talk on tariffs. Kansas City Fed president Jeff Schmidt is saying on Tuesday that increased tariffs appear to be having only a limited impact on inflation, but that's reason to keep Fed policy on hold and not to ease. This coming after July's Consumer Price Index came in less than expected on Tuesday amid worries that tariff induced inflation would show up in the report.
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These listings imply ongoing data collection efforts for Tesla's 'Full Self-Driving' (FSD) system, which the company currently markets as 'FSD Unsupervised' in the U.S. In each of those locations Tesla's autonomous testing operates in a patchwork of local and statewide gray areas, some of which are more strict than others. That's been concerning for market watchers and consumers both, because Tesla's pursuit of autonomous vehicle deployment appears to be accelerating. In Texas, the company recently secured a permit to operate a robotaxi fleet without a human safety driver on board, a significant step in its plan to expand autonomous ride-hailing services. Since June, Tesla has operated a limited robotaxi fleet in Austin, with employees occupying the passenger seats and ready to intervene if necessary. CEO Elon Musk has also heavily hinted that this service could soon open to the general public. Similar initiatives are underway in San Francisco, where Tesla runs a restricted 'autonomous ride-hailing' service, despite the fact that Tesla is not authorized to call these vehicles 'taxis' or carry passengers fully autonomously within California. Musk has repeatedly assured followers that Tesla is 'working as quickly as possible' to deploy over 100 autonomous vehicles for ride-hailing in the Bay Area and plans to allow anyone to request a ride. Tesla's autopilot driving has had a rocky road so far Tesla's still faces federal investigations, lawsuits, and recalls linked to crashes involving Autopilot and FSD. California regulators, in particular, have called out Tesla for misleading advertising, arguing that the automaker's claims about 'self-driving' capabilities may be overly optimistic or even false, a charge Tesla strongly disputes. Tesla's Autopilot system is also under increasing scrutiny from regulators amid mounting concerns over its safety and effectiveness, particularly regarding driver engagement and the potential for misuse. Federal agencies have launched investigations and issued recalls related to Autopilot's failures to ensure drivers remain attentive, raising questions about the technology's readiness. The National Highway Traffic Safety Administration (NHTSA) has highlighted significant driver engagement issues, especially with Tesla's 'Full Self-Driving' (FSD) system. The agency's review has found that Autopilot does not incorporate adequate safeguards to prevent drivers from becoming distracted or disengaged while using the system. In 2023, regulators recalled approximately 2.3 million Tesla vehicles due to concerns that Autopilot sometimes fails to detect when drivers are not paying attention. Additionally, NHTSA has opened a new investigation into FSD following a fatal crash, citing concerns over the system's ability to operate safely. The agency identified a 'critical safety gap' in Autopilot's design, noting that the system's structure permits foreseeable misuse that could lead to avoidable accidents. Critics argue that Tesla's systems may give drivers a false sense of security, encouraging risky behavior behind the wheel. Beyond the NHTSA's investigation, the Department of Justice and the Securities and Exchange Commission (SEC) are reportedly examining Tesla's self-driving claims and safety record, adding layers of regulatory concern. Tesla maintains that Autopilot is designed as a driver assistance feature, not a fully autonomous system. The company argues that it requires drivers to maintain attention and control at all times. Tesla has also issued software updates aimed at addressing some of the safety issues raised by regulators. Tesla's scrambling amid market headwinds Meanwhile, Tesla's core business of selling electric vehicles continues to face headwinds, especially in Europe, where sales have slowed this year. Shareholders and consumers alike have been reacting to Musk's controversial political comments, which have alienated some potential buyers, while analysts say that his emphasis on the Cybertruck and other high-profile projects has cost Tesla massive amounts of money right as it hemorrhages customers. Despite the setbacks, Tesla is still pushing hard to roll out fully autonomous vehicles, a possible new income stream for a company currently beset by sales issues. Its ongoing hiring spree for test drivers across multiple markets signals that the company is collecting critical data and pushing toward higher levels of self-driving capability. Whether those efforts will translate into fully autonomous robotaxis available to the public remains uncertain, particularly as regulatory hurdles and safety concerns continue to complicate the pathway forward. Our Take Tesla's 'ask forgiveness, not permission' strategy was effective when it was a scrappy underdog. But as a dominant automaker with a technology implicated in a growing number of federal investigations, that playbook is colliding with reality. The question is no longer whether Tesla's tech is ambitious, but whether the company is willing to operate under the same rules as everyone else.