Nike stock surges after earnings and revenue top expectations (3 min read)
Nike’s latest quarterly results were higher than the same time last year and the estimates from analysts. Their expenses went up by 10%, mostly from advertising and marketing Nike Direct, but it has paid off. Nike Direct sales were up 16% for the quarter and digital sales were up 25% as the company continues to move away from wholesalers to grow as a direct-to-consumer brand. Shares of Nike were up more than 12% in the extended trading after the quarterly release.
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FedEx earnings sink as soft demand persists (2 min read)
FedEx reported quarterly earnings and revenues lower than a year ago due to lingering weak consumer demand. The Express unit showed particular weakness with income dropping 64% from last year. However, their aggressive cost cutting has softened the decline in sales. It reduced costs last quarter by parking planes and closing some offices while also raising delivery rates. It said on Tuesday that another $1 billion can be saved beyond the forecast in September.
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Yen soars after surprise BOJ policy tweak (3 min read)
The yen surged to a four month high against the dollar on Tuesday after the Bank of Japan shocked the global market with a bond yield shift. BOJ decided to allow the 10-year bond yield to move up and down 50 basis points around the 0% target, wider than the 25 basis points previously. The yen maintained its strength after the announcements suggest that the market believes the widened band around yield cap will lead to policy tightening in the coming spring.
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Canada October retail sales up 1.4%, expect down 0.5% in November (2 min read)
Canadian retail sales rose 1.4% in October from the previous month according to the latest data. October gained the most in the last five months and was mostly driven by price increase in gas stations and in food and beverages. November is estimated to be 0.5% lower as it enters the holiday shopping season after seven rate hikes this year. The Bank of Canada raised rates by a total of 4% in the last nine months and the full impact has not been felt by the economy yet.
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What Can AI Do for Investment Portfolios? A Case Study (3 min read)
This article from CFA institute shared a case study where it analyzed a particular AI trading model to bring some clarity on the benefits and risks that AI-based strategies can offer. It was compared to the S&P 500 from 2019 to 2022 and the AI trading model had outperformed by avoiding trades on high return or volatility days. The analysis also showed that the AI trading model was better at predicting markets going down than up.
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BlackRock Cuts Fees on 8 iShares ETFs (2 min read)
BlackRock’s iShares recently announced that it is lowering fees for three corporate bond ETFs, four multi-factor equity ETFs, and a semiconductor ETF. Some cuts were as high as 20 basis points. This is the latest move in a recent wave of fee cuts by ETF giants to attract investors with near-zero expense to secure assets. Vanguard, State Street, and Dimensional Fund Advisors have all reduced fees in their suite of ETFs in the past months.
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That's it for today! You can reply to this email if you have any comments or feedback.
Thanks,
Thomas
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