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DJIA Futures: -60 (-0.2%)

SPX Futures: +11 (+0.2%)

NASDAQ Futures: +44 (+0.3%)

Good morning friends!

Futures are mixed after the release of better-than-expected inflation data as Nike (NKE) weighs on the Dow.

Let’s get right to it!

Two Months Of Gains

The major indexes are all on track to close out this week higher, marking the 8th positive week in a row. 

That’s the longest win streak for the S&P 500 since 2017 and for the Dow since 2019. 

So far, the S&P is up 0.58% this week, the Dow has gained 0.27%, and the Nasdaq is up 1%. 

The small-cap Russell 2000 is also on track for its sixth straight positive week.

PCE Price Index Comes In Light

The Fed’s preferred inflation gauge rose less than expected in November. 

The personal consumption expenditures price index fell 0.1% monthly and rose 2.6% year over year. 

That was better than expectations for a 2.8% annual increase and marked the lowest level of inflation since March 2021. 

It was also the first monthly decrease in the headline number since 2020.

The core PCE price index rose 0.1% monthly and 3.2% annually.

That was also lower than expectations for a 3.3% annual increase and the lowest since early 2021.

Consumer Spending Weak

Consumer activity was weaker than expected in November. 

The Bureau of Economic Analysis reported consumer spending rose 0.2% last month vs 0.3% expected. 

The data shows consumers spent more on housing, utilities, dining out, and hotel stays last month. 

But they spent less on gasoline as prices fell. 

Personal incomes rose 0.4%, topping expectations for 0.2% and outpacing inflation.

Nike Tumbles After Slashing Guidance

Nike (NKE) shares are dropping 11.7% ahead of the open after reporting mixed fiscal Q2 results and slashing its full-year guidance. 

Here’s how the sneaker giant’s results compared to analysts’ estimates: 

  • EPS: $1.03 vs $0.85 expected
  • Revenue: $13.39 billion vs $13.43 billion expected

Sales rose about 1% year over year. 

Nike’s gross margin increased by 1.7% to 44.6% as the company continued work to lower its inventories. 

Inventories were down 14% during the quarter.

The company now expects full-year revenue growth of 1% and gross margins to expand between 1.4% and 1.6%. 

Nike said it expects revenue growth in the current quarter to be slightly negative.

The CFO said, “Last quarter as I provided guidance, I highlighted a number of risks in our operating environment, including the effects of a stronger U.S. dollar on foreign currency translation, consumer demand over the holiday season and our second half wholesale order books. Looking forward, the impact of these risks is becoming clearer.”

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