{"id":65619,"date":"2022-12-21T08:59:58","date_gmt":"2022-12-21T13:59:58","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=65619"},"modified":"2022-12-21T08:59:58","modified_gmt":"2022-12-21T13:59:58","slug":"coffee-with-greta-nikes-strong-earnings-boost-stocks","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/12\/21\/coffee-with-greta-nikes-strong-earnings-boost-stocks\/","title":{"rendered":"Coffee With Greta: Nike\u2019s Strong Earnings Boost Stocks"},"content":{"rendered":"

DJIA Futures: <\/b>+329 (+1.0%)<\/span><\/p>\n

SPX Futures: <\/b>+29 (+0.8%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+54 (+0.5%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are higher as traders digest strong earnings from <\/span>Nike <\/b>(NKE) which are boosting the <\/span>Dow<\/b>.<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

Nike Surges On Earnings Beat<\/span><\/h2>\n

Nike <\/b>(NKE) shares are surging 11.4% ahead of the open after beating fiscal Q2 expectations and raising its outlook.\u00a0<\/span><\/p>\n

Here\u2019s how the company\u2019s results compared to analysts\u2019 expectations:<\/span><\/p>\n

    \n
  • EPS: $0.85 vs $0.64 expected<\/span><\/li>\n
  • Revenue: $13.32 billion vs $12.57 billion expected<\/span><\/li>\n<\/ul>\n

    Revenue jumped 17% year over year and the CFO said they now expect full-year revenue growth in mid-single digits vs the previous forecast for growth in the low-to mid-single digits.<\/span><\/p>\n

    But the company still struggled with inventory in the quarter.\u00a0<\/span><\/p>\n

    Inventories were up 43% year over year to $9.3 billion, down from $9.7 billion in fiscal Q1.\u00a0<\/span><\/p>\n

    The CEO said he believes the company is past its inventory peak.<\/span><\/p>\n

    FedEx Jumps After Strong Earnings<\/span><\/h2>\n

    FedEx <\/b>(FDX) shares are up 5.8% in premarket trade after reporting mixed fiscal Q2 results.\u00a0<\/span><\/p>\n

    Here\u2019s how the shipping giant\u2019s results compared to analysts\u2019 expectations:<\/span><\/p>\n

      \n
    • Adjusted EPS: $3.18 vs $2.81 expected<\/span><\/li>\n
    • Revenue: $22.8 billion vs $23.7 billion expected<\/span><\/li>\n<\/ul>\n

      Although profits came in stronger than expected, those results were down from EPS of $4.38 on $23.5 billion in sales a year ago.\u00a0<\/span><\/p>\n

      FedEx\u2019s earnings guidance also came in weak with the company expecting full year adjusted EPS of $13 to $14 vs Wall Street\u2019s expectation of $14.\u00a0<\/span><\/p>\n

      The company said it is still facing headwinds from a weakening global economy but said it expects volume weakness to subside in the second half of its fiscal year.<\/span><\/p>\n

      FedEx is cutting costs to offset that weakness with management planning to reduce expenses by about $3.7 billion this fiscal year.<\/span><\/p>\n

      Refinance Demand Jumps As Rates Drop<\/span><\/h2>\n

      Refinance demand jumped last week as mortgage rates hit the lowest level since September.\u00a0<\/span><\/p>\n

      The Mortgage Bankers Association reported refinance applications jumped 6% weekly but were still down 85% year over year.\u00a0<\/span><\/p>\n

      Purchase applications fell 0.1% weekly and 36% annually, as this is historically the slowest time of the year for home purchases.\u00a0<\/span><\/p>\n

      The average 30-year fixed contract rate decreased to 6.34% from 6.42% the previous week.\u00a0<\/span><\/p>\n

      Although that\u2019s the lowest since September, rates are still more than double what they were at this time in 2021.<\/span><\/p>\n

      Existing Home Sales Expected To Fall<\/span><\/h2>\n

      The National Association of Realtors reports existing home sales for November at 10:00 a.m. ET.<\/span><\/p>\n

      That report is expected to show the pace of sales slowed last month to a seasonally adjusted annual rate of 4.17 million units from 4.43 million in October.\u00a0<\/span><\/p>\n

      The housing market has seen a sharp slowdown in activity due to higher mortgage rates piling on top of the typical seasonal slowdown in sales.\u00a0<\/span><\/p>\n

      Consumer Confidence Expected To Improve<\/span><\/h2>\n

      The Conference Board releases its December consumer confidence index at 10:00 a.m. ET.\u00a0<\/span><\/p>\n

      That survey is expected to have improved to a reading of 101.2 from 100.2 in November.\u00a0<\/span><\/p>\n

      Consumer confidence hit the lowest level since July last month as inflation continues to pressure shoppers.<\/span><\/p>\n

      In Case You Missed It<\/span><\/h2>\n
        \n
      • Wells Fargo <\/b>(WFC) agreed Tuesday to a $3.7 billion settlement with the Consumer Financial Protection Bureau over customer abuses tied to checking accounts, mortgages, and auto loans. The company was ordered ti pay a record $1.7 billion civil penalty plus more than $2 billion to customers. The CFPB said, \u201cConsumers were illegally assessed fees and interest charges on auto and mortgage loans, had their cars wrongly repossessed, and had payments to auto and mortgage loans misapplied by the bank.\u201d Wells Fargo said many of the \u201crequired actions\u201d of the settlement have already been completed.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

        DJIA Futures: +329 (+1.0%) SPX Futures: +29 (+0.8%) NASDAQ Futures: +54 (+0.5%) Good morning friends! Futures are higher as traders digest strong earnings from Nike (NKE) which are boosting the Dow. Let\u2019s get right to it! Nike Surges On Earnings Beat Nike (NKE) shares are surging 11.4% ahead of the open after beating fiscal Q2 expectations and raising its outlook.\u00a0 Here\u2019s how the company\u2019s results compared to analysts\u2019 expectations: EPS: $0.85 vs $0.64 expected Revenue: $13.32 billion vs $12.57 billion expected Revenue jumped 17% year over year and the CFO said they now expect full-year revenue growth in mid-single digits vs the previous forecast for growth in the low-to mid-single digits. But the company still struggled with inventory in the quarter.\u00a0 Inventories were up 43% year over year to $9.3 billion, down from $9.7 billion in fiscal Q1.\u00a0 The CEO said he believes the company is past its inventory peak. FedEx Jumps After Strong Earnings FedEx (FDX) shares are up 5.8% in premarket trade after reporting mixed fiscal Q2 results.\u00a0 Here\u2019s how the shipping giant\u2019s results compared to analysts\u2019 expectations: Adjusted EPS: $3.18 vs $2.81 expected Revenue: $22.8 billion vs $23.7 billion expected Although profits came in stronger than expected, those results were down from EPS of $4.38 on $23.5 billion in sales a year ago.\u00a0 FedEx\u2019s earnings guidance also came in weak with the company expecting full year adjusted EPS of $13 to $14 vs Wall Street\u2019s expectation of $14.\u00a0 The company said it is still facing headwinds from a weakening global economy but said it expects volume weakness to subside in the second half of its fiscal year. FedEx is cutting costs to offset that weakness with management planning to reduce expenses by about $3.7 billion this fiscal year. Refinance Demand Jumps As Rates Drop Refinance demand jumped last week as mortgage rates hit the lowest level since September.\u00a0 The Mortgage Bankers Association reported refinance applications jumped 6% weekly but were still down 85% year over year.\u00a0 Purchase applications fell 0.1% weekly and 36% annually, as this is historically the slowest time of the year for home purchases.\u00a0 The average 30-year fixed contract rate decreased to 6.34% from 6.42% the previous week.\u00a0 Although that\u2019s the lowest since September, rates are still more than double what they were at this time in 2021. Existing Home Sales Expected To Fall The National Association of Realtors reports existing home sales for November at 10:00 a.m. ET. That report is expected to show the pace of sales slowed last month to a seasonally adjusted annual rate of 4.17 million units from 4.43 million in October.\u00a0 The housing market has seen a sharp slowdown in activity due to higher mortgage rates piling on top of the typical seasonal slowdown in sales.\u00a0 Consumer Confidence Expected To Improve The Conference Board releases its December consumer confidence index at 10:00 a.m. ET.\u00a0 That survey is expected to have improved to a reading of 101.2 from 100.2 in November.\u00a0 Consumer confidence hit the lowest level since July last month as inflation continues to pressure shoppers. In Case You Missed It Wells Fargo (WFC) agreed Tuesday to a $3.7 billion settlement with the Consumer Financial Protection Bureau over customer abuses tied to checking accounts, mortgages, and auto loans. The company was ordered ti pay a record $1.7 billion civil penalty plus more than $2 billion to customers. The CFPB said, \u201cConsumers were illegally assessed fees and interest charges on auto and mortgage loans, had their cars wrongly repossessed, and had payments to auto and mortgage loans misapplied by the bank.\u201d Wells Fargo said many of the \u201crequired actions\u201d of the settlement have already been completed.<\/p>\n","protected":false},"author":41,"featured_media":65625,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-65619","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/65619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=65619"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/65619\/revisions"}],"predecessor-version":[{"id":65626,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/65619\/revisions\/65626"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/65625"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=65619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=65619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=65619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}