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HomeLatest NewsGlobal NewsMarket Watch: FedEx Earnings, Nike Warning, and Apple Lawsuit Impact Market Trends"

Market Watch: FedEx Earnings, Nike Warning, and Apple Lawsuit Impact Market Trends”

Market Watch

Dow futures rose 35 points, S&P 500 futures 8 points, and Nasdaq 100 futures 45 points, or 0.3%.

The stock results of FedEx and Nike were divergent because FedEx surprised with high profits growth while Nike warned of a sales fall. Wall Street is expected to close the week strongly up, despite Apple being hit with an antitrust lawsuit..


FedEx earning report

FedEx shares surged 12% premarket after reporting better-than-expected fiscal 2024 third-quarter earnings, despite economic uncertainty. The company’s adjusted profit for the quarter was $966 million, or $3.86 per share, ahead of expectations.

Quarterly revenue was $21.7 billion, down from $22.2 billion last year. FedEx narrowed its fiscal 2024 profit forecast, raising the bottom end and lowering the top, and plans to buy back $500 million worth of shares in the current quarter.

FedEx’s Express overnight delivery unit saw a 2.5% increase in operating margin from 1.2% a year ago, despite falling volumes due to the US Postal Service’s preference for cheaper ground services. The company is currently in negotiations for a new multi-year contract with the USPS, with the current contract expiring in September.

FedEx also expressed caution about the future, predicting revenue pressure from volatile macroeconomic conditions, which could negatively impact customer demand and constrain yield growth.

DOJ Apple Lawsuit

The US Department of Justice is suing Apple in a landmark antitrust case, accusing the iPhone maker of operating monopolies and abusing their power. The suit alleges that Apple has imposed software and hardware limitations on its iPhones and iPads to impede rivals from effectively competing, reinforcing the moat around its smartphone monopoly.

Apple faces a lawsuit, posing a significant risk to its business model, as its stock fell over 4%. The US government has not ruled out breaking up Apple, along with Alphabet, Meta Platforms, and Amazon, also facing lawsuits.

Nike revenue dip

Nike shares fell 6.7% premarket due to a revenue dip in the first half of fiscal 2025 due to a decrease in franchises and a decline in growth in the running category, as newer brands took market share, despite the company’s direct-to-consumer strategy not driving growth as expected.

Nike’s third-quarter performance exceeded expectations, with a 3% increase in North America and a 5% rise in Greater China, allowing the retail giant to maintain its fiscal 2024 revenue forecast of a 1% growth, largely due to holiday season discounts and new sneaker launches.

Economic Calendar

Fed’s Bowman Speech
9:00 Jerome Powell Speech
10:00 Fed’s Jefferson Speech
12:15 PM Fed’s Barr Speech
1:00 PM Baker-Hughes Rig Count
4:00 PM Fed’s Bostic Speech

Other Key Events:

  • Goldman Sachs 7th Annual Healthcare Innovation Clinic, 3/21-3/22, in London
  • S&P Global 39th Annual World Petrochemical Conference, 3/18-3/22, in Houston, TX

Must read book about investing – check hereMarket WatchMarket WatchMarket WatchMarket Watch Market Watch Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting

U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.

Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.

U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.

Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.

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