- 3 Big Scoops
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- 🍦 Nike Continues to Disappoint
Bulls, Bitcoin, & Beyond
Market Moves Yesterday
S&P 500 @ 5,482.87 ( ⬆️ 0.091%)
Nasdaq Composite @ 17,858.68 ( ⬆️ 0.30%)
Bitcoin @ $61,671.22 ( ⬆️ 0.11%)
Hey Scoopers,
Happy Friday! The weekend is on the horizon:
👉 Nike disappoints investors
👉 China’s automakers poised to gain market share
👉 Another crypto ETF?
So, let’s go 🚀
Market Wrap 📉
The S&P 500 index eked out a narrow gain on Thursday as Wall Street looked ahead to fresh inflation data for clues as to when the Fed will begin lowering interest rates.
Key semiconductor stocks were in the red as investors questioned whether the AI trade could continue to sustain markets in the second half of 2024.
Micron fell over 7% following its Q4 results, while market bellwether Nvidia dipped 1.9%.
Today, analysts will closely watch the core personal consumption price index for May, the Fed’s preferred measure of inflation. Economists expect PCE to rise by 2.6% year over year.
Traders hope the report will show easing pricing pressures, which could cement the likelihood of interest rate cuts in late 2024.
Trending Stocks 🔥
Walgreens Boots Alliance- Shares fell 22% after the drugstore chain slashed its profit outlook and warned of a “challenging” consumer environment. It also missed the earnings expectations in fiscal Q3.
Chewy - The online pet retailer rallied over 12% (before pulling back) after meme stock influencer Keith Gill, also known as “Roaring Kitty,” posted a picture of a cartoon dog on social media platform X.
International Paper - Shares of the paper manufacturing company fell 7% following the news that Suzano is no longer pursuing a potential acquisition of the company.
Nike Slumps Over 12%
Nike shares are down over 12% in pre-market after the retailer cut its full-year guidance and said it expects sales to drop 10% in the current quarter due to soft sales in China and uneven consumer trends. Comparatively, analysts forecast sales to drop 3.2% in fiscal Q1 of 2025 (ending in August).
The company lowered its guidance as it wrestles with sluggish online sales, planned declines in classic footwear franchises, and increased macro uncertainty in China.
Alternatively, the retail giant easily beat earnings estimates in fiscal Q4 as its cost-cutting efforts continue to bear fruit. In the May quarter, Nike reported:
Revenue of $12.6 billion vs. estimates of $12.84 billion
Earnings per share of $1.01 vs. estimates of $0.83
Nike’s sales in fiscal 2024 stood at $51.36 billion, which was flat compared to 2023. If we exclude the COVID-19 pandemic, Nike saw its slowest pace of annual sales growth since 2010.
Nike stock is down over 50% after touching all-time highs in November 2021.
Chinese Automakers Eye Global Expansion
According to a report from AlixPartners, Chinese auto manufacturers are expected to increase international sales rapidly and may account for 33% of the global automotive market by 2030.
The rapid expansion of China-based automakers is a concern for legacy players as well as governments. Market participants fear that less-expensive China-made vehicles will flood the markets, undercutting domestic-producer vehicles, especially in the EV segment.
Chinese automakers are gaining traction in Europe, and their market share is expected to double to 12% by 2030.
Cost advantages, localized production strategies, and tech-enabled vehicles should help Chinese automakers expand in several international markets.
VanEck Files for Solana ETF
VanEck, one of the first issuers of spot Bitcoin ETFs in the U.S., has filed for a Solana ETF.
The new ETF, the VanEck Solana Trust, aims to capitalize on Solana's growing popularity due to its decentralized nature, high utility, and low transaction costs.
The ETF filing comes shortly after the U.S. regulators recently approved the launch of spot Ethereum ETF.
Valued at $66 billion by market cap, Solana is among the five largest cryptocurrencies globally. The crypto bull run in the last year has driven Solana's price higher by over 650%.
Headlines You Can't Miss!
Japanese yen weakens to fresh 38-year lows
Tesla is losing its quality edge
Drug prices have risen 40% in 10 years
Retail trader bought the dip in Nvidia
Coinbase partners with payments firm Stripe
Chart of The Day
Valued at $62 billion by market cap, Nu Holdings is among the fastest-growing stocks in the fintech space.
It ended Q1 of 2024 with 99.3 million customers, up from just 500k eight years back. Today, around 54% of the adult population in Brazil are Nubank customers.
Priced at 31x forward earnings, Nu remains reasonably valued with the potential to deliver outsized gains.
Meme of the Day
DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.