A strong week for stocks ended on a quiet note Friday. The main market indexes have carved out solid gains – and new record highs – this week thanks to the Federal Reserve's relatively dovish rate-cut outlook, but today's price action was more subdued.
At the end of today's trading, the Nasdaq Composite was up 0.2% at 16,428 – a new record close. The S&P 500 (-0.1% at 5,234) and the Dow Jones Industrial Average (-0.8% at 39,475), on the other hand, retreated from Thursday's record highs, on weakness in Nike (NKE) shares.
Indeed, the blue chip stock slid 6.9% to settle at its lowest point since September following the athletic apparel and footwear maker's earnings report. While Nike beat on both the top and bottom lines in its fiscal third quarter, sales in China and EMEA (Europe, the Middle East and Africa) fell short of what analysts were expecting. Additionally, the company gave disappointing fiscal fourth-quarter and full-year guidance.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"While we continue to appreciate the brand dominance of Nike and secular tailwinds for health and wellness and casual lifestyles, we believe macroeconomic headwinds in the U.S. and China and ongoing pressure in the wholesale channel could temper NKE's growth," says Jefferies analyst Randal Konik.
Konik has a Hold rating on the Dow Jones stock, but much of the Street is more bullish toward Nike. Of the 39 analysts covering NKE surveyed by S&P Global Market Intelligence, 15 say it's a Strong Buy, nine have it at Buy, 12 call it a Hold and three say it's a Sell or Strong Sell. This works out to a consensus Buy recommendation.
FedEx pops on earnings beat, buyback news
FedEx (FDX) was another big post-earnings mover, with shares surging 7.4% after the logistics giant unveiled its fiscal third-quarter results. FDX reported higher-than-anticipated earnings and revenue for the three-month period and narrowed its full-year earnings per share guidance. The company also said its board of directors approved a new $5 billion stock buyback plan.
Results "benefitted from lower variable compensation," says BMO Capital Markets analyst Fadi Chamoun, adding that "FDX continued to demonstrate solid momentum in terms of cost reduction successfully mitigating an ongoing soft macro environment."
PCE, Powell on tap in short trading week
Despite today's mixed finish for the main indexes, all three ended the week with gains ranging from 2% to 3%. This positive price action was sparked by Wednesday's release of the Fed's "dot plot," which showed most central bank officials still anticipate three quarter-point cuts to the federal funds rate this year despite sticky inflation.
Another inflation update is on next week's economic calendar, with the Friday morning release of the February Personal Consumption and Expenditures (PCE) Price Index, which tracks consumer spending. Note that this is also a stock market holiday in observance of Good Friday. Nevertheless, investors will be keen to interpret the inflation data, as well as to tune into a speech from Federal Reserve Chair Jerome Powell later that morning.
Related content
- How to Spot a Bubble
- State Farm To Exit Homeowner Renewal Policies in California
- Kiplinger's Earnings Calendar for This Week
-
Is Delta's New AI Pricing Bad News for Your Wallet?Delta is using AI to "personalize" the price you pay for airfare. Here's what that could mean for your next trip.
-
The 10 Places Where Social Security Covers the Most (and Least) Of Your ExpensesOn average, Social Security covers 30.11% of retirees’ spending. Fortunately, there are places where those dollars will stretch further and cover more of your spending.
-
Are Buffett and Berkshire About to Bail on Kraft Heinz Stock?Warren Buffett and Berkshire Hathaway own a lot of Kraft Heinz stock, so what happens when they decide to sell KHC?
-
How Divorced Retirees Can Maximize Their Social Security Benefits: A Case StudySusan discovered several years after she filed for Social Security that she is eligible to receive benefits based on her ex-spouse's earnings record. This case study explains how her new benefits are calculated and what her steps are to claim some of the money she missed.
-
From Piggy Banks to Portfolios: A Financial Planner's Guide to Talking to Your Kids About Money at Every AgeFrom toddlers to young adults, all kids can benefit from open conversations with their parents about spending and saving. Here's what to talk about — and when.
-
I'm an Investment Pro: Here's How Alternatives Could Inject Stability and Growth Into Your PortfolioAlternative investments can often avoid the impact of volatility, counterbalancing the ups and downs of stocks and bonds during times of market stress.
-
Dow Bleeds Red Due to Big Blue: Stock Market TodaySix of the official GICS sectors were in the green, led by communications services, technology and energy stocks.
-
July Fed Meeting: Live Updates and CommentaryThe July Fed meeting could be a lively economic event, with Wall Street keyed into what Fed Chair Powell has to say about interest rates and President Trump.
-
A Contrarian Approach Pays Off for This Small-Cap FundSmall-cap stocks have been hit hard by tariff worries, but this T. Rowe Price fund has outperformed thanks to its manager's against-the-tide approach.
-
A Financial Planner's Guide to Unlocking the Power of a 529 Plan529 plans are still the gold standard for saving for college, especially for affluent families, though they are most effective when combined with other financial tools for a comprehensive strategy.
