European stocks reached a record high amid interest rate decisions, with Nike's earnings causing market ripples and political developments in France and Ukraine influencing investor sentiment.
The article argues that Eli Lilly shares should be valued higher and discusses expectations and wishlist items for Nike's upcoming earnings report, providing insights into investment opportunities and market analysis.
Stock futures declined slightly as a U.S. government shutdown looms, raising concerns about economic data delays and market stability, though recent market performance remains resilient with stocks ending September higher. Nike reported surprising sales growth despite profit declines, highlighting ongoing challenges.
U.S. stock futures are slightly higher amid optimism over a U.S.-China trade agreement and anticipation of May inflation data, with Nike's shares soaring after strong earnings and a top Tesla aide leaving the company amid declining European sales.
Nike is expected to report weaker-than-expected quarterly results due to increased tariffs, inventory clearance challenges, and deteriorating conditions in China, with investors keenly awaiting guidance on its turnaround efforts, product pipeline, and partnership developments, especially with Skims and efforts to attract more female shoppers.
Dow Jones futures were little changed as the stock market rally attempt gained modest gains. Investors are awaiting the release of the PCE inflation report and the possibility of a government shutdown. Tech stocks like Meta, Nvidia, and Uber are worth watching. Nike stock surged after reporting higher-than-expected earnings. The stock market rally could gain momentum with a follow-through day next week.
This week, investors will be keeping an eye on updates regarding labor strikes, inflation data, and earnings reports from companies like Nike and Costco. The Personal Consumption Expenditures (PCE) index, the Federal Reserve's preferred inflation indicator, will be released on Friday. Additionally, consumer sentiment checks, housing data, and an update on quarterly economic growth are expected. The ongoing labor disputes between the United Auto Workers (UAW) and the Alliance of Motion Picture and Television Producers (AMPTP) will also be in focus. Stocks will be looking to bounce back after a sell-off last week following the Fed's hawkish outlook.
The odds of two more Fed rate hikes this year are increasing as markets anticipate a key inflation report. The stock market had a mixed session, with financials and industrials leading the way. Nike reported mixed earnings, while Apple received a new Street-high price target. The PCE inflation report is due out, following a series of strong U.S. economic reports. Dow Jones futures were little changed after hours.