The stock market closed mixed on Wednesday after the Federal Reserve kept interest rates unchanged. The central bank’s Chair Jerome Powell also indicated that a rate hike is unlikely to happen.
Despite such, S&P 500 and NASDAQ decreased 0.3% to 5,018 and 15,605, respectively, as stocks tied to artificial intelligence struggled during the day.
Tweet of the Day
Every two years… $MSCI https://t.co/0QGGfAYA3w
— Jerry Capital (@JerryCap) April 23, 2024
Chart of the Day
Here is the one-year chart of Nike (NKE) as of April 2, 2024, when the stock was at $91.
Nike is experiencing slow growth due to new competition from On Running and Hoka. Last quarter, the company had profit growth of -3% on 0% sales growth. To combat this trend, Nike is changing its product portfolio to focus on innovation and new technologies. It wants to make cooler shoes to keep up with what people want. To do that, however, they have to slow down on selling some of old popular shoes, which means that they might not make as much money right away. Storytelling will tell fewer, bigger stories with greater reach. Nike’s new products, Kobe and Ja basketball shoes saw strong growth. After these initiatives were announced in the earnings call, analysts reduced profit estimates and the stock declined to a 52-week low.
NKE is part of the Conservative Growth Portfolio.
