Good Evening! On Thursday, there was an increase in stock prices, following the release of recent data that highlighted the ability of the US economy to withstand the interest rate hikes implemented by the Federal Reserve.
The Dow Jones rose the most today by 0.80%, while the S&P 500 followed behind at 0.40%. However, the Nasdaq Composite finished the day flat at 0.00%.
STILL WORK TO DO
Nike (NKE) announced its financial results for the fourth quarter, revealing sales figures that exceeded market expectations. However, the company’s profits were slightly lower than anticipated. Let’s see those numbers!
- Revenue: $12.83 Billion vs. $12.59 Billion Expected
- Gross Margin: 43.6% vs. 43.5% Expected
- Earning Per Share: $0.66 vs. $0.67 Expected
What else? Nike demonstrated a notable resurgence in the Greater China region, achieving sales amounting to $1.81 billion, surpassing the projected figure of $1.64 billion as anticipated by analysts. The inventories exhibited little change compared to the previous year, ultimately promoting confidence that Nike has successfully addressed its surplus inventory issue.
It’s not enough yet… Nike experienced a decline as it approached the release of its report, with shares witnessing a 6% decrease Year to Date. Furthermore, analysts have reduced their price targets for shares of the company in the past few weeks. Why? Concerns had circulated regarding the declining demand in North America and the challenges faced in achieving revenue growth in Greater China as a result of the COVID-19 restrictions.
The confluence of thunderstorms and insufficient staffing resulted in a total of over 20,000 flights experiencing delays and approximately 5,000 flights being canceled throughout the U.S. during the past week. And with the approach to the upcoming Fourth of July weekend, the TSA has predicted that tomorrow will witness the highest volume of air travel since the beginning of the pandemic.
What’s going on? The adverse weather conditions are not helpful to the situation, and a shortage of workers persists despite an increase in travel following the pandemic. The CEO of United Airlines, Scott Kirby, related the airline’s significant number of cancellations to staffing challenges within the Federal Aviation Administration (FAA) and he is not the only one facing this issue according to an audit conducted by the FAA.
- According to the audit, 77% of critical facilities such as Air Traffic Control, are currently operating with staffing levels that fall below the threshold of 85% which is deemed necessary to operate.
It doesn’t end there… According to recent reports, it is anticipated that the introduction of a new 5G service will potentially lead to an increase in flight disruptions. This is primarily due to the possibility of wireless transmissions interfering with aircraft lacking updated equipment.