Nike’s Turnaround Looks Like It’s Going Well—But Tariffs Could Be a Stumbling Block
1 hour ago
The revamp of Nike’s brand made headway last quarter, according to executives, but another high hurdle—rising tariff expenses—looms.
Nike (NKE) reported better first-quarter results than expected Tuesday evening. CEO Elliott Hill said the “Win Now” turnaround campaign is working, as evidenced by a 5% year-over-year bump in wholesale revenue and 20% jump in running gear sales over the course of the quarter.
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The company also touted robust spring wholesale orders, a strong early response to its collab with Kim Kardashian and the prospect of momentum around the World Cup next summer. Investors have broadly cheered Nike’s in-process recovery: Its shares were recently up 5%, only about 1% below where they finished 2024, and analysts tracked by Visible Alpha on average expect them to approach $83.
“I’m even more convinced that the Win Now actions are absolutely the right focus for our teams,” Hill said, according to a transcript made available by AlphaSense. “With that said, we’re also realistic that we are turning our business around in the face of a cautious consumer, tariff uncertainty and teams that are settling [in].”
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Supreme Court Blocks Trump From Firing the Fed’s Lisa Cook, For Now
1 hr 23 min ago
The Supreme Court has temporarily stopped President Donald Trump from firing an official at the Federal Reserve, dealing a blow to the president’s efforts to influence the independent central bank.
The high court issued a one-paragraph order Wednesday directing that Fed Governor Lisa Cook can stay on the job at least until January, when the justices will hear oral arguments about her case. Trump tied to fire Cook in August after accusing her of mortgage fraud, but a lower court temporarily blocked her dismissal without ruling on the unproven fraud allegations. Trump had asked the Supreme Court to intervene and allow her to be removed while the courts decide her case.
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The order is a victory for advocates of an independent Fed that’s free from direct control of the White House, and a setback for Trump’s efforts to install his own nominees on the Fed’s seven-member governing board. Trump has demanded the Fed dramatically lower interest rates, and has sought to put like-minded officials on its board of governors.
Cook’s lawyers have argued Trump does not have the authority to remove Cook, since the law only permits him to dismiss Fed governors “for cause.” Historically, the Fed was set up to be independent from the White House to reduce the influence of politicians who might push the bank to keep interest rates too low, giving a temporary boost to the economy but allowing inflation to run rampant in the long run.
Treasury Stocks Are Crypto’s Story of the Moment. Here’s What Investors Should Know
1 hr 35 min ago
If you’re a crypto investor, you have more options than ever before. That doesn’t mean your choices are any simpler.
Crypto is a fast-expanding market at a time when digital asset prices are under renewed pressure. Digital assets, from bitcoin (BTCUSD) to altcoins and big-name crypto stocks, sputtered to end the third quarter as negative market vibes descended on an industry fired up by regulatory reforms, product rollouts, and deals.
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Crypto exchange Gemini (GEMI), platform Bullish (BLSH) and lending firm Figure Technologies (FIGR) saw their stocks pop on their debuts, inspiring other crypto companies to move closer to IPOs. New crypto ETFs are on the way following the approval of generic listing standards. A few are already on the market.
But the concept that best represents the current moment might be digital asset treasury companies, or DATCOs. There are now hundreds of public companies that seek to emulate the bitcoin-buying habits of Michael Saylor’s Strategy (MSTR). Some have helped lifted coin prices, though a quarter-end crypto selloff has raised questions about their effectiveness.
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Warren Buffett’s Berkshire Hathaway Could Be Closing in on $10B Deal With Occidental Petroleum
2 hr 16 min ago
Berkshire Hathaway (BRK.A, BRK.B) is reportedly close to a $10 billion deal to buy the petrochemical division of Occidental Petroleum (OXY), in what would be the largest deal by Warren Buffett’s conglomerate since 2022.
Buffett, according to the Financial Times and The Wall Street Journal, is already the largest shareholder in Houston-based Occidental. Berkshire’s 2022 purchase of insurer Alleghany for $11.6 billion was the last major deal for the conglomerate, which has been growing its cash pile lately by unwinding shares in companies like Apple (AAPL) and Bank of America (BAC), rather than making big-ticket acquisitions.
According to the reports, citing people familiar with the matter, talks for the conglomerate to buy OxyChem could be completed within days. The OxyChem deal would be Buffett’s second big bet on chemicals after Berkshire Hathaway’s acquisition of Lubrizol in 2011, the reports said.
Investopedia / Photo Illustration by Alice Morgan / Getty Images
Berkshire had a record cash-and-equivalents pile of $344 billion at the end of June, while debt-laden Occidental has been selling noncore assets to raise cash. Lofty valuations have made it difficult for Buffett, known for being a value investor, to deploy that cash, including buying back its own stock.
The 95-year-old Buffett, known as the “Oracle of Omaha,” is planning to retire from his role as CEO at the end of the year, with Greg Abel set to take over.
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Lithium Americas Stock Soars as U.S. Takes 5% Stakes in Company and Mining Project
2 hr 44 min ago
Lithium Americas (LAC) shares jumped Wednesday after the lithium miner and Department of Energy announced the U.S. would be taking a 5% stake in the company and become a partner in a key lithium project in Nevada.
The U.S. will receive a 5% economic stake in a joint venture (JV) between Lithium Americas and General Motors (GM), which are partnering to build the key Thatcher Pass mine.
Shares of Lithium Americas, which soared last week on a report that the U.S. was considering an investment in the company, hit a fresh record high this morning and were up 22% in recent trading.
Lithium Americas will also receive the first tranche of a $2.26 billion DOE loan for the project totaling $435 million, with the government deferring $182 million of debt service over the first five years of the loan.
In addition, the company said that General Motors agreed to amend its agreement “to permit the JV to enter into additional third-party offtake agreements for certain remaining production volumes not forecasted to be purchased by GM.”
Energy Secretary Chris Wright noted that despite having some of the world’s largest deposits of lithium, the U.S. produces less than 1% of the global supply. He said this deal “helps reduce our dependence on foreign adversaries for critical minerals by strengthening domestic supply chains and ensures better stewardship of American taxpayer dollars.” Lithium is used in batteries that power electric vehicles, cellphones, and more.
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Musk Tells X Followers to ‘Cancel Netflix’
3 hr 40 min ago
Netflix (NFLX) stock is not off to a strong start Wednesday. A social media post by Elon Musk probably didn’t help.
Musk, the CEO of Tesla (TSLA), SpaceX, and others, instructed followers on his X network to “Cancel Netflix for the health of your kids.”
Shares of Netflix were down 2.2% in the first hour of trading. Still, they have added more than 30% of their value this year.
PATRICK T. FALLON / AFP via Getty Images
Nike Levels to Watch as Shares Surge on Surprise Sales Growth
4 hr 4 min ago
Nike (NKE) shares jumped in early trading Wednesday after the sports apparel and equipment maker posted surprise sales growth and topped Wall Street’s earnings expectations.
The company said revenue grew 1% in the fiscal first quarter from a year earlier, well above its prior guidance of a mid-single-digit percentage decline. Adjusted earnings per share came in at $0.49, compared with the $0.26 analysts had expected.
Nike, which is undergoing an ambitious turnaround effort, cited strength in its wholesale, running, and North American businesses, which offset weaker sales in China. The company cautioned that it anticipates holiday season sales to fall, and that it now expects a $1.5 billion hit from tariffs in the current fiscal year, up from the $1 billion it had projected in June.
Heading into the report, Nike shares had lost 8% since the start of the year, pressured by concerns over the company’s high exposure to tariffs and uncertainty about the execution of its turnaround. The stock was up nearly 4% at around $72.50 in recent trading.
Over the past month, Nike shares have traded lower within a falling wedge but look set to break out from the pattern on Wednesday.
It’s worth noting the stock found buying interest ahead of the report around the closely watched 200-day moving average, a move that coincided with the relative strength index climbing out of oversold territory.
Read the full technical analysis piece here.
Big Tech’s AI Spending—and Borrowing—Will Be Even Higher Next Year, Says Citi
4 hr 28 min ago
After a series of big cloud computing deals this month, Citigroup analysts now expect AI spending to exceed their already eye-watering forecast.
Citi analysts on Tuesday estimated that hyperscalers—including Microsoft (MSFT), Alphabet (GOOG), Amazon (AMZN), Oracle (ORCL), and CoreWeave (CWV)—will spend $490 billion on infrastructure and other capital goods next year, up from a prior estimate of $420 billion. Citi’s forecasts are slightly above the Wall Street consensus.
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The analysts pointed to an onslaught of announced partnerships, investments, and products in recent weeks as evidence of strong AI demand. They said their recent conversations with CIOs and CTOs at a range of companies “reflect a similar increase in urgency around adoption at the enterprise level.”1
Citi expects AI infrastructure providers like Nvidia (NVDA) to benefit from higher spending. As such, the firm’s analysts raised their price target on Nvidia shares to $210 from $200 on Tuesday.
Read the full article here.
Q4 Begins After Strong Q3 for Stock Indexes
5 hr 42 min ago
Stock investors are hoping the fourth quarter, which begins today, goes a lot like the third.
Major stock indexes registered robust gains in Q3, with the tech-heavy Nasdaq soaring 11.2%, the benchmark S&P 500 adding 7.8%, and the blue-chip Dow Jones Industrial Average advancing 5.2%.
The indexes were aided by an unusually strong September, with the Dow, S&P 500, and Nasdaq gaining 5.6%, 3.5%, and 1.9%, respectively.
For the year, the Nasdaq has soared 17.3%, the S&P 500 has jumped 13.7%, and the Dow has increased 9.1%.
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Stocks Have Had a Big 2025. Should You Buy Into the ‘Most Wonderful Time’ of the Year?
6 hr 10 min ago
It’s been a good year for U.S. stocks so far. Some experts are calling for an even stronger finish.
An uncharacteristically strong September—the month with a reputation as the worst for stocks—saw the S&P 500 add 3.5% after logging a series of fresh highs, bringing the benchmark index up close to 14% year-to-date. That, some say, could be a bullish signal about the next three months.
The end to a trading year is generally seen as an upbeat time for traders, who sometimes cite adages—and the history that underpins them—as reason for optimism. (The most important motto, however, might be the reminder that “past performance does not guarantee future results.”)
Michael M. Santiago / Getty Images
Over the last 76 years, when the S&P 500 climbed in the first nine months of the year, investors saw gains in the fourth quarter roughly 89% of the time. And when the benchmark index hit records in September, according to LPL Financial, that number got even higher, creeping over 90%.
The index has logged an average return of 2.9% in the last three months of the year going back to 1928, Bank of America analysts recently wrote, better than any other quarter. Q4, the analysts wrote, is historically the “most wonderful time of the year for stocks.”
That period tends to kick off with a comparatively slow October—the month has posted negative returns about 40% of the time since 1928, according to BofA—followed by a stronger November.
Read the full article here.
Stock Futures Fall as US Government Shuts Down
6 hr 27 min ago
Futures tied to the Dow Jones Industrial Average were down 0.4%.
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S&P 500 futures were 0.5% lower.
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Nasdaq 100 futures fell 0.5%.
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