Podcast Summary
Nike's financial performance: Nike's financial performance in H1 2024 missed expectations, leading to a stock price decline. The company forecasted mid-single digit sales declines and expanding gross margins for FY25, acknowledging the need to address lack of innovation and competition in key categories, particularly running division. Inflation and employment remained issues in the broader economy.
Nike's financial performance in the first half of 2024 fell short of expectations, leading to a significant decline in its stock price. The company reported a smaller revenue gain than anticipated and provided a revised outlook for fiscal year 25, projecting mid-single digit sales declines and expanding gross margins by 10 to 30 basis points. Nike's executives acknowledged the need to address the lack of innovation and competition in key categories, particularly in the running division. The debate between President Biden and former President Trump highlighted the ongoing issue of inflation, with each leader pointing fingers at the other for its current state. According to the U.S. Bureau of Labor Statistics, employment remained relatively stable at the end of 2020, but consumer prices rose by 1.4 percent during the same period. These developments underscore the challenges facing both Nike and the broader economy.
Biden's Last Year Employment & Inflation: During Biden's last year in office, employment reached $157.2mn but inflation rose by 3.4% due to COVID-related supply chain disruptions. Investors can track elections through market instruments with available Republican and Democrat ETFs.
During the last full year of Biden's presidency in December 2023, total non-farm payroll employment was $157.2 million, while consumer prices for all items rose by 3.4% due to inflation caused by the disruption of supply chains during the COVID pandemic. For investors tracking elections through market instruments, there are Republican and Democrat ETFs available, which can be found in the podcast transcript. In Argentina, Equinor's first exploration well in the North Argentine basin showed no signs of oil or natural gas, despite high expectations. Meta may block news content on Facebook if forced to pay a licensing fee, while the NFL was ordered to pay $4.7 billion after losing an antitrust trial. Serkana will release US video game sales results, and the Russell indexes have been reconstituted. Pre-market, Fenera is a notable mover after Nokia's acquisition announcement. Futures for the Dow, S&P, and NASDAQ are up, with crude oil at $82 a barrel and Bitcoin at 61,000. The FTSE 100 and DAX are also up. Personal income and outlays, or the PCE index, are expected to remain unchanged at 2.6% year over year.
Chicago PMI, Michelle Bowman: Two economic events, Chicago PMI at 9:45 AM and Michelle Bowman's discussion at 12 PM, could potentially impact financial markets. Stay informed with Seeking Alpha's premium subscription.
Two significant economic events are happening today. At 9:45 AM, the Chicago PMI data will be released. Later in the day, at 12 PM, Michelle Bowman from the Federal Reserve will participate in a discussion at the Ronald Reagan Presidential Foundation and Institute Leadership Council Conference. These events could potentially impact the financial markets, so it's worth keeping an eye on them. If you want to stay informed about these and other significant stocks and ETFs, consider becoming a premium subscriber on Seeking Alpha. I'm Julie Morgan, and that's it for today's Wall Street Breakfast. Go out and make it a great day!