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- 🥾 Nike Doesn't Do It
🥾 Nike Doesn't Do It
Big Moves Decoded: ORCL, CCL, and more!
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Market Performance
S&P 500: 6,834.50 ⬆️ 0.99%
Nasdaq: 23,307.62 ⬆️ 1.31%
Dow Jones: 48,134.89 ⬆️ 0.38%
Nike Stock Sinks 10%
Nike (NKE) shares plummeted over 10% despite beating Wall Street's earnings expectations, highlighting a critical vulnerability in the sportswear giant's turnaround strategy—China.
The athletic apparel maker reported quarterly earnings of $0.53 per share versus $0.38 expected, with revenue of $12.43 billion topping estimates of $12.22 billion.
North America sales climbed 9% to $5.63 billion, demonstrating domestic strength. However, Greater China revenue collapsed 17% to $1.42 billion, sending shockwaves through the stock.
CEO Elliott Hill, just over a year into his turnaround plan, acknowledged the struggle: "We're in the middle inning of our comeback."
The company expects fiscal third-quarter revenues to decline by a low single digit, with gross margins taking a 1.75 to 2.25 percentage-point hit—including a brutal 3.15 percentage-point impact from tariffs.
Adding to investor concerns, Nike's Converse brand saw revenues plunge 30%, while direct-to-consumer sales fell 8% to $4.6 billion as Hill pivots back to wholesale partnerships.
Nike stock has a Ziggma score of 50 and ranks below most peers on valuation and growth.
Down 64% from all-time highs, Nike stock still trades at a forward earnings multiple of 30x, which is steep, given its slowing growth rates.
Our Takeaway
Nike's China weakness isn't just a Nike problem—it's a warning signal for all Western consumer brands betting on Chinese recovery.
While Hill's turnaround shows promise domestically, the company's third-largest market remains volatile, and tariff headwinds continue to squeeze margins at the worst possible time.
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Market Overview 📈
U.S. stocks rallied on Friday, with the AI trade regaining momentum after recent volatility rattled investor confidence.
The Nasdaq led gains, surging 1.31%, while the S&P 500 and Dow both snapped losing streaks with their second consecutive winning session.
The rally extended to AI chipmakers, with Nvidia climbing 4% on reports that the Trump administration is reviewing potential chip sales to approved Chinese customers.
However, consumer sentiment for December came in at 52.9, below the expected 53.5, suggesting lingering economic anxiety.
The 30-year Treasury yield hovered near levels not seen since 2023, reflecting ongoing concerns about fiscal deficits and potential inflation pressures from tariffs.
With both major indexes lower for December—historically one of the strongest months—Wall Street's coveted Santa Claus rally remains in doubt as investors head into the year's final trading week.
Stock Moves Deciphered 📈
🚀 Oracle (ORCL)
Oracle surged 6.6% after TikTok agreed to sell its U.S. operations to a joint venture including Oracle and Silver Lake.
The deal positions Oracle as a core equity holder and security partner, guaranteeing a major Oracle Cloud Infrastructure customer while providing upside optionality from TikTok's advertising economics and AI recommendation systems.
Evercore ISI called it "a nice win for Oracle with some upside optionality," maintaining an outperform rating with a $275 price target—implying 52.8% upside despite the stock's 31% year-to-date decline.
🛳️ Carnival Corp. (CCL)
Carnival shares jumped 9.81% after delivering a stellar fourth quarter with adjusted earnings of $0.34 per share, crushing the $0.25 per share consensus estimate.
The cruise operator announced record booking volumes for 2026 and 2027 sailings, signaling robust demand as the company continues its post-pandemic recovery.
Management's optimistic guidance and reinstated dividend reinforced investor confidence in Carnival's financial turnaround and ability to capitalize on pent-up travel demand.
🩼 Moderna (MRNA)
Moderna gained 9.21% to $33.86 after the Coalition for Epidemic Preparedness Innovations invested $54.3 million to fund a Phase 3 trial for its pandemic influenza vaccine.
The investment validates Moderna's mRNA platform beyond COVID-19 and opens new revenue opportunities in pandemic preparedness.
With governments and health organizations increasingly focused on proactive vaccine development, Moderna's diversified pipeline is gaining traction among investors seeking exposure to next-generation biotechnology.
💸 Micron Technology (MU)
Micron climbed 6.99% to $265.92, extending Thursday's 10% surge after delivering blowout first-quarter fiscal 2026 results.
The memory chipmaker's robust revenue guidance for the current quarter reassured investors amid recent AI trade jitters.
Surging demand for memory and storage products driven by artificial intelligence applications continues to fuel Micron's growth, with the company positioned as a critical supplier to hyperscalers building out AI infrastructure.
Headlines You Can't Miss 👀
🏦 DraftKings launched prediction markets in 38 states, entering the crowded event-contract betting space following its acquisition of the Railbird platform.
📊 Invesco QQQ ETF will reduce fees to 0.18% from 0.2% starting December 22 after converting to an open-ended investment vehicle.
💶 iShares MSCI Europe Financials ETF hit a fresh all-time high, on pace for its best year since inception in 2010, driven by gains in SocGen, Commerzbank, and Deutsche Bank.
🎅 Santa Claus rally prospects remain uncertain as the S&P 500 struggles to hold above the 50-day moving average, with December performance tracking below the historical 1%+ average.
🏛️ Fed Governor Christopher Waller had a "strong interview" with President Trump for the Fed chair position, discussing labor market and job creation strategies in depth.
💻 Citi named Amazon, Alphabet, DoorDash, VeriSign, eBay, Reddit, and GoDaddy as top internet stock picks for 2026, citing AWS growth and AI demand.
📉 Consumer sentiment for December came in at 52.9, below expectations of 53.5 and up only modestly from November's 51.0 reading.
🏢 NYSE confirmed the trading schedule remains unchanged for December 24 and 26 despite President Trump's executive order closing the federal government on both days.
Trending Stocks 📊
🤖 CoreWeave (CRWV)
CoreWeave shares rose 22.6% after the company joined the Department of Energy's Genesis Mission to advance U.S. research and innovation in AI infrastructure.
Separately, Citi resumed coverage with a bullish stance and price target, implying shares could double from current levels, citing the cloud infrastructure company's strategic positioning in the rapidly expanding AI compute market.
🍖 Lamb Weston (LW)
Lamb Weston plunged 26% in its worst day since July 2024 after reaffirming full-year revenue guidance of $6.35-$6.55 billion despite beating second-quarter estimates.
The unchanged guidance implies potential weakness in the second half, disappointing investors.
Shares traded at levels not seen since March 2020, with EBITDA margins coming in slightly below consensus expectations.
🚚 FedEx (FDX)
FedEx rose modestly after posting fiscal second-quarter adjusted earnings of $4.82 per share on revenue of $23.47 billion, crushing estimates of $4.11 per share and $22.79 billion, respectively.
The shipping giant's strong performance brought shares within striking distance of their 52-week high of $295.24, demonstrating resilient demand amid a challenging economic backdrop.
What’s Next?
Key market and macro news 👇
🇨🇳 The PBoC will announce its decision on its key interest rate. A rate cut could stimulate the Chinese economy, potentially boosting U.S. companies with significant sales in China.
🇬🇧 The final reading of the UK's third-quarter GDP will be released. A revision to the initial estimate could influence the global economic outlook and ripple through U.S. markets.
🎄 With the Christmas holiday approaching, trading volumes are expected to be low. This can lead to increased volatility, where even small trades can have an outsized impact on stock prices.
Chart of the Day
Source: Fiscal.AI
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