Today is Friday, December 20, 2024.

The Early Bird Index today is 78.59

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Nike's Comeback Hasn't Started 🏃‍♂️

Nike’s (NYSE: NKE) good financial earnings on Thursday failed to impress investors, with the stock ticking down by 0.54% in after-hours trading.

Financials: Nike reported earnings of 78 cents per share in the past quarter and revenue of $12.4 billion; both were better than expected.

Yes, But: Revenue was still down 8% year-over-year, including a 13% drop in the direct-to-consumer business.

Background: Nike’s stock is down 27% this year as sales have declined. The company welcomed a new CEO in October and wants to stage a comeback.

Early Bird’s Nest Egg Gains: Nike faces significant challenges in staging a comeback as its revenue continues to decline. However, Nike has some factors that could potentially contribute to a comeback, such as a new leader, a focus on innovation, and cost-cutting measures.

Final Thoughts: Investors continue to wait for Nike’s comeback to begin.

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Notables

Notable Earnings Today: Carnival (NYSE: CCL), Winnebago (NYSE: WGO).

Notable IPOs Today: Youxin Technology Ltd Class A Ordinary shares (Nasdaq: YAAS), FACT II Acquisition Corp. Class A Ordinary Shares (Nasdaq: FACT), Tavia Acquisition Corp. Ordinary Shares (Nasdaq: TAVI), Range Capital Acquisition Corp. Units (Nasdaq: RANGU).

Notable Equity Crowdfunding Campaigns Ending Today: MISAA (Netcapital), 32 Biosciences (Republic), Jiminy's (SMBX), Neighborhood Sun (Wefunder), Lucky Tiki by 1933 Group (Wefunder), Buffalo State Pizza Co (Wefunder).

Notable Economic Events Today: PCE Price Index / Core PCE Price Index (8:30 a.m. ET), Personal Spending (8:30 a.m. ET), Michigan Consumer Expectations / Sentiment (10:00 a.m.).

FedEx Spins Off Freight Unit

Despite posting mixed financial results on Thursday, FedEx (NYSE: FDX) climbed by 8.74% in after-hours trading after announcing a new spinoff.

Financials: FedEx reported earnings of $4.05 per share in the past quarter, which was better than expected. But revenue only reached $22 billion, which was lower than expected.

Powering the Story: On Thursday, FedEx announced it is separating its less-than-truckload freight business from the organization and creating a new publicly traded company of the unit. This is expected to occur in the next 18 months.

Stock Price: FedEx was up 9% this year. It was down 5% in the last 30 days.

Final Thoughts: There are still concerns about FedEx, including its less-than-stellar outlook, but this spinoff is promising.

U.S. Steel Lowers Outlook

United States Steel (NYSE: X) declined by 3.69% in after-hours trading on Thursday after disclosing that the company expects to lose money in the current quarter.

Details: U.S. Steel now expects to lose 25 cents to 29 cents per share in the quarter. Analysts originally projected a profit for the quarter. The company blamed weak demand and a lower pricing environment as well as downtime from a factory fire.

Background: In December, the White House blocked a deal for U.S. Steel to be sold to a Japan-based steelmaker.

Final Thoughts: The stock was already down 33% this year.

Tends to Watch

Unlimited Breadsticks Growth: Darden Restaurants stock climbs as Olive Garden, LongHorn Steakhouse fuel sales growth (CNBC)

Big Crypto Change: Aptos Labs CEO Mo Shaikh Quits; Avery Ching to Take His Place (CoinDesk)

Post-Election Rally Over: Is Bitcoin price going to crash again? (Cointelegraph)

No Special Delivery: Thousands of Amazon drivers have gone on strike in the thick of the holiday package season (CNN)

No More Scarcity: FDA says Lilly weight loss drug shortage is over after taking a second look (NBC News)

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_{The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.}