Forex Signals May 13: Cisco, Alibaba, and USA Rare Earth USAR Earnings Preview in Focus Wednesday

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Investors will closely monitor results from Cisco Systems, Alibaba Group Holding, and USA Rare Earth on Wednesday as markets look for updates on enterprise spending, Chinese consumer demand, and strategic mineral production growth.

US CPI Report Was Critical on Tuesday

This week’s U.S. inflation data offered the next major catalyst for markets.

Hotter CPI Report Revives Inflation Concerns

The April Consumer Price Index report came in hotter than expected, bringing inflation concerns back into focus during the North American trading session. Headline CPI rose 0.6% month over month, matching forecasts, while the annual inflation rate held steady at 3.3%.

Core Inflation Surprises to the Upside

The biggest surprise came from core CPI, which excludes food and energy prices. Core inflation increased 0.4% on the month, above expectations for a 0.3% rise. On an annual basis, the core rate climbed to 2.8% from 2.6% previously, reinforcing concerns that underlying price pressures remain persistent.

Shelter and Services Prices Remain Sticky

A major concern for the Federal Reserve was the renewed acceleration in shelter and services inflation. Shelter costs rose 0.6% during the month, with both rents and owners’ equivalent rent increasing 0.5%. Services excluding energy services also advanced 0.5%, suggesting inflation pressures are becoming more widespread across the economy.

Energy continued to drive much of the headline increase, with gasoline prices jumping 5.4% month over month and remaining up 28.4% annually. Food prices also strengthened during the period.

Treasury Yields Move Higher

The stronger inflation data pushed Treasury yields sharply higher as markets scaled back expectations for Federal Reserve rate cuts. The 2-year Treasury yield neared 4.0%, while the 10-year yield moved back toward 4.46%. Meanwhile, the 30-year yield climbed above the key 5% level to 5.024%.

Earnings Calendar Highlights Wednesday

Wednesday’s earnings calendar brings together three companies tied to major global themes: enterprise technology spending, China’s economic recovery, and strategic resource independence. Cisco’s outlook may provide insight into corporate infrastructure demand, Alibaba’s results could reflect the strength of Chinese consumption trends, while USA Rare Earth remains a high-risk growth story tied to long-term industrial and geopolitical shifts. Investors are likely to focus heavily on forward guidance and management commentary as broader market volatility continues.

Cisco Systems Expected to Highlight Enterprise and AI Infrastructure Demand

• Cisco Systems is scheduled to report fiscal third-quarter earnings after the market closes, with analysts expecting earnings per share of $1.04.
• Investors will focus on demand trends for networking equipment, cybersecurity products, and cloud infrastructure solutions.
• Cisco has benefited from growing enterprise investment in data centers and digital infrastructure, particularly as businesses continue expanding computing capacity tied to automation and advanced computing workloads.
• The company’s recurring software and subscription revenue remains an important driver of stability during periods of slower hardware spending.

Wall Street will also monitor management commentary on:

• Enterprise technology budgets
• Government and telecom spending
• Supply chain conditions
• Margins and cost controls
• AI-related networking demand

Guidance for the second half of 2026 may be the biggest catalyst for the stock following the report.

Alibaba Faces Continued Scrutiny Over Consumer Spending Recovery

• Alibaba Group Holding will release quarterly results before the market opens, with analysts forecasting earnings per share of 5.74.
• Investors remain focused on the pace of China’s economic recovery and whether consumer activity continues improving across Alibaba’s e-commerce platforms.

The company has been attempting to strengthen growth through:

• Expanded discount initiatives
• Logistics improvements
• International commerce expansion
• Increased cloud and digital services investment

Alibaba Cloud performance will likely remain a key discussion point as competition in China’s cloud market intensifies.

Markets will also watch for updates on:

• Profit margins
• Regulatory developments
• Share buybacks
• Competitive pressure from JD.com and PDD Holdings
• Any signs of stabilizing consumer demand or stronger cloud revenue growth could improve sentiment toward Chinese technology stocks broadly.

USA Rare Earth Draws Attention Amid Strategic Mineral Demand

• USA Rare Earth is expected to report a quarterly loss of $0.22 per share after the close.
• Investors will likely focus less on short-term earnings and more on operational progress, production timelines, and domestic supply chain development.
• The company’s positioning within the broader U.S. effort to reduce dependence on foreign rare earth suppliers continues to support speculative interest in the stock.
• Updates regarding mining capacity, processing facilities, and government partnerships could influence market reaction.

Despite remaining unprofitable, the company has attracted investor interest due to rising global demand for rare earth materials used in:

• Electric vehicles
• Defense systems
• Renewable energy technologies
• Advanced electronics

Gold Returns to $4,500

Although demand for safe haven assets is still high, gold fell precipitously from record highs following the Fed’s most recent rate cut comments, as profit-taking was prompted by Powell’s cautious tone. In December, gold jumped above $4,380 following the Federal Reserve’s announcement of a 25 basis point rate decrease. But the impetus soon waned, and prices dropped back to $4,004. The 20o daily SMA (red) held as support this week and buyers returned and pushed XAU above the $4,800 and above the 100 SMA (green).

USD/JPY Rebounds

USD/JPY – Daily Chart

Cryptocurrency Update

Bitcoin Returns Above $80K

Cryptocurrencies remained highly active over the summer. Bitcoin (BTC) climbed to fresh highs of $123,000 and $124,000 in July and August, supported by institutional inflows and technical strength. However, remarks from Treasury Secretary Scott Bessent ruling out U.S. increases to BTC reserves triggered a steep pullback, sending the coin down to $80K before finding support at the 100 weekly SMA (green). A rebound followed, sending BTC near $100 is the first major text for Bitcoin buyers. However BTC returned lower and fell below $80K, breaking below the but the 100 weekly SMA (green) but the decline stopped at the $60K support where the 200 weekly SMA (purple) stands and rebounded above $76K but returned to $70K again.

BTC/USD – Daily Chart

Ethereum Returns to $2,000

Ethereum (ETH) has been similarly strong, surging toward $4,800, its highest since 2021 and near its all-time peak of $4,860. Despite a dip last week, ETH found support at the 20-day SMA, with retail enthusiasm and renewed institutional participation driving fresh upside momentum. Last week we saw a dive below $2,000 but buyers returned n d pushed the price above $2K again.

ETH/USD – Weekly Chart

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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