Market Pulse: Nike’s Mixed Bag, Samsung’s Layoffs, and Middle East Tensions
In a surprise move, Nike reported better-than-expected profits but fell short on sales, causing its stock to tumble nearly 6% in premarket trading. The sportswear giant’s profit margin improved by 120 basis points to 45.4%, beating estimates. However, North American footwear sales declined 14%, while apparel sales dropped 10%. In China, footwear sales remained soft, but apparel sales were down more than expected.
Meanwhile, Samsung is planning to cut thousands of jobs in Southeast Asia, Australia, and New Zealand, according to a Bloomberg report. The layoffs, which could affect up to 10% of employees in these regions, will focus on management and support positions. This move comes as Samsung trails rival SK Hynix in producing high-bandwidth memory chips used in artificial intelligence applications.
Tensions in the Middle East continue to escalate, driving crude oil prices higher. Iran’s missile attack on Israel has sparked fears of a wider war, with crude oil futures rising more than 2% overnight. Analysts warn that an attack on Iranian oil production or export facilities could cause a material disruption, potentially exceeding 1 million barrels per day.
In other news, the markets are bracing for a volatile day, with Dow, S&P, and Nasdaq futures all in the red. Crude oil is up 2.6% at $71 per barrel, while Bitcoin is down 3.9% at $61,000. The FTSE 100 is flat, and the DAX is down 0.2%. Lamb Weston is among the biggest movers, down 4.3% after revising down its FY2024 outlook and introducing a cost-saving restructuring plan.
Today’s economic calendar includes the ADP Jobs Report and a speech by Fed’s Michelle Bowman on “Building the Community Banking Framework for the Future.”
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