Markets
Nikkei 225
26,215.79
▲ +278.58 / +1.07%
SSE Composite
3,024.39
▼ -16.81 / -0.55%
IBOVESPA
115,091.17
▲ +5,054.38 / +4.59%
Straits Times
3,107.09
▼ -23.15 / -0.74%
BMV IPC
45,130.67
▲ +503.87 / +1.13%
Dow Jones
29,347.47
▲ +621.96 / +2.17%
DAX 30
12,209.48
▲ +95.12 / +0.79%
BSE SENSEX
56,788.81
▼ -638.11 / -1.11%
FTSE 100
6,908.76
▲ +14.95 / +0.22%
JSE Top 40
57,849.66
▲ +459.96 / +0.80%
Last Week’s Highlights
Nike gets a low blow
Nike plunges and its shares hit a two-and-a-half year low after the company warned of shrinking margins from widespread markdowns as companies rush to get rid of excess inventory amid slowing demand. Nike’s forecast is for full-year gross margin to fall between 200 and 250 basis points, partly also due to inflation. The stock plunged nearly 10% to $86, if the losses hold, the company stands to lose about $15 billion in market value.
Oil keeps going down
Due to the problems in the economy, with high inflation levels and recession fears, oil continues its downward trend. West Texas Intermediate oil closed with a 2.1% drop to 79.52 dollars, breaking the 80-dollar mark. According to some specialists, oil could suffer a further drop, making next week’s meeting of the Organization of the Petroleum Exporting Countries a key event to watch out for. U.S. natural gas fell 0.7% to $6.287 on Friday, with the potential for further decline.
Coming Up This Week
JP Morgan is hiring
The largest bank in the United States and one of the largest financial institutions in the world, JP Morgan Chase, plans to hire close to 2,000 engineers worldwide until the end of the year. This information comes according to a Reuters report, which states that despite the worsening economy, JP is looking for new team members. In 2021, the company already added about 5,000 software developers and data scientists; currently, tech workers account for about 20% of JPM’s 278,000 employees. Analysts are bullish on the financial company’s stock; they give it a “moderate-buy” rating. The average share price is $137.76 and has an upside potential of 29.5%.
Peloton’s new partnership
US-based home media and exercise equipment manufacturer Peloton Interactive announced an agreement with retailer Dick’s Sporting Goods. Peloton’s products will be sold in more than 100 Dick’s stores across the United States and will also be available in e-commerce channels. The COVID-1 closure of gyms meant good growth rates for Peloton; however, since the reopening of the economy, its sales have been weak. Following the announcement of this deal, investors were concerned about the impact on Peloton’s margins, as the company could lose some of its pricing power by using Dick’s retail platform.
