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A Wave of Red as FedEx, Nike, and Micron Disappoint on Earnings

A Wave of Red as FedEx, Nike, and Micron Disappoint on Earnings

Published: by Omor IE

Key Points

  • The stock market is plunging due to weak earnings reports from three big companies.

  • The bad news was amplified by an uncertain macroeconomic background.

  • Most stocks remain red today, though some have gained.

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The stock market went down as the market opened due to three big companies missing on their earnings after the market closed yesterday. These companies are among the leaders in their respective industries, so this has weighed on the broader market’s performance.

Moreover, many have flagged a bear flag forming on the Nasdaq 100 (QQQ). Previous uncertainty combined with these misses has amplified bearish sentiment again.

Here’s a market update as of 10:45 A.M (ET) today.

  • The S&P 500 is down 41 points, or 0.73%.
  • The Nasdaq Composite is down 107 points, or 0.61%.
  • Dow Jones Industrial Average is down 341.7 points, or 0.81%.
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Markets Open Red as FedEx, Nike, and Micron Disappoint Wall Street

  • FedEx (NYSE: FDX): Down nearly 10%. FedEx reported an adjusted EPS of $4.51 for its fiscal third quarter and missed expectations of $4.56. Revenue beat slightly, but the company cut its full-year earnings guidance to $18.00–$18.60 per share, down from $19.00–$20.00. This was attributed to a “weak U.S. industrial economy.”
  • Nike (NYSE: NKE): Down 6.6%. Earnings beat expectations, with EPS at $0.54 and revenue at $11.27 billion vs. expectations of $0.29 in EPS and $11.01 billion in revenue. However, the company warned of weaker revenue, profit growth, and tariff impacts.
  • Micron Technology (NASDAQ: MU): Down 6.9%. It did provide an upbeat sales forecast of $8.8 billion in revenue vs. $8.55 billion in estimates. It also beat expectations. Shares rose initially but have sold off significantly since due to AI-related worries.

Notable Gainers Today

  • Regencell Bioscience Holdings (NASDAQ: RGC): Up 34% as part of a massive YTD rally of over 1,150%.
  • Ouster (NASDAQ: OUST): Up 26% due to strong Q4 and FY2024 report. Cantor Fitzgerald upped the price target to $11.
  • Tonix Pharmaceuticals (NASDAQ: TNXP): Up over 16% due to its Monkeypox vaccine as the virus spreads.
  • Scholastic (NASDAQ: SCHL): Up 14.8% as it beats EPS expectations.
  • Torrid Holdings (NYSE: CURV): Up over 10% due to it beating Q4 EPS expectations.

Notable Losers Today

The market has been falling, and most stocks are red.

  • KinderCare Learning Companies (NYSE: KLC): Down 18.5% as Wall Street isn’t happy with its earnings report.
  • Planet Labs (NYSE: PL): Down 18% as sales came in below analyst estimates.
  • Outset Medical (NASDAQ: OM): Down 15% as reverse split takes effect.
  • Surprisingly, gold has also sold off by about 1%.

The image featured at the top of this post is ©Savushkin / iStock via Getty Images.

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