Nike Warns of Soft Sales and Plans Spending Cuts

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Key Takeaways

  • The S&P 500 posted gains of 0.2% on Friday, Dec. 22, 2023, heading into the holiday break amid expectations that the Federal Reserve will cut interest rates next year.
  • Gold prices rose to their highest level in three weeks, helping send shares of Newmont Corporation higher.
  • Nike cut its revenue outlook and said it would be cutting costs as demand for its sneakers and other athletic wear slowed.

It wasn’t much of a gain, but the S&P 500 headed into the Christmas holiday break in positive territory, up 0.2%. The markets have been on a tear recently amid enthusiasm about the potential of several interest rate cuts by the Federal Reserve next year.

ANSYS (ANSS) shares led the index, with shares up 18.1% following a report that the engineering software firm is looking at options, including a sale, after it received interest as a potential takeover target.

Bristol-Myers Squibb (BMY) shares rose 2% following its $14 billion purchase of Karuna Therapeutics (KRTX). The move was aimed at strengthening the drug maker’s neuroscience portfolio. Karuna shares skyrocketed 47.7% to an all-time high.

Newmont Corporation (NEM) shares added 1.5%, and shares of rival gold miners were up as well, as gold prices climbed to their highest level since Dec. 1.

Nike (NKE) shares experienced the S&P 500’s biggest losses on Friday, plunging 11.8% when the athletic apparel retailer slashed its full-year revenue outlook and announced plans for spending cuts as sales slowed. The news helped send shares of Foot Locker (FL), a major seller of Nike sneakers, falling 3.9%.

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Cummins (CMI) shares dropped 2.9% after the engine maker agreed to pay a $1.675 billion fine relating to accusations by regulators that it altered pickup truck engines to circumvent vehicle emissions standards.



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