U.S. Stocks Start October Higher; Nike China Sales Plunge 26% | Finance Evening

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Nike Revenue Misses Estimates as China Sales Plunge 26%, Layoffs Announced

Source: CNBC

Nike on Thursday reported a mixed fiscal first quarter and announced a restructuring that will bring layoffs starting in 2027. The company guided for fiscal 2027 revenue to decline by a high-single-digit percentage, with adjusted earnings per share of $1.15 to $1.35. Shares fell about 3% in extended trading.

Net income came in at $712 million, down 2% from $727 million a year earlier. Revenue fell 4% to $11.21 billion, with Greater China revenue dropping 26%. North America revenue was $5.13 billion, slightly above the $5.11 billion expected, and gross margin was 42.8% versus the 42.4% estimate.

CEO Elliott Hill said the company is moving with urgency in China, but pressure in Sportswear, Jordan Brand and Greater China is not yet offset. It is Nike's third round of layoffs this year; the plan, called Pace, is expected to deliver about $2.5 billion in savings through fiscal 2031 and a 15-cent restructuring charge to fiscal 2027 EPS.

U.S. Stocks Open October Higher as Micron Earnings Lift AI Sentiment

Source: Investor's Business Daily

U.S. stocks closed higher Thursday, starting the fourth quarter on a positive note after a weak open, as easing yields provided support. Micron Technology (MU) erased early losses after reporting quarterly results.

The Dow Jones Industrial Average and the Nasdaq both edged into positive territory. Deal news sent Barbie maker Mattel (MAT) soaring, and Accenture shares also jumped. Investors are awaiting Friday's U.S. September jobs report.

Google Launches Gemini 4 Argon; Alphabet Shares Rise

Source: Yahoo Finance

Google on Thursday launched Gemini 4 Argon, a new AI model focused on coding and cybersecurity. Alphabet (GOOG) shares rose about 2% in premarket trading. The model will first be available to a group of trusted cybersecurity researchers, then paid API customers and Google AI Ultra subscribers, before a broader rollout.

Jefferies said Gemini 4 Argon is priced at $2 per million input tokens and $10 per million output tokens, versus $10 and $50 for Anthropic's Claude Fable 5.1 and $4 and $20 for Claude Opus 5.5. Google is also offering a 95% discount on cached input tokens.

Google said the model scored 77.9% on the DeepSWE v1.1 coding benchmark, a record, though it trails rivals on the tougher FrontierSWE v2. Jefferies maintains a buy rating on Alphabet with a $445 price target.

U.S. Jobless Claims Near 57-Year Lows; September Layoffs Fall

Source: Reuters

New U.S. applications for unemployment benefits hovered near 57-year lows last week and layoffs fell in September, suggesting labor market stability even as employers stayed cautious about hiring, the Labor Department said Thursday. Initial claims slipped 1,000 to a seasonally adjusted 197,000 for the week ended September 26, below the 200,000 economists expected.

Outplacement firm Challenger, Gray & Christmas said announced layoffs dropped 18% to 43,281 in September, down 20% from a year ago and 43% in the third quarter. Hiring plans rose to 90,787 from 12,325 in August, but were still down 23% year over year, the lowest for any September since 2011.

The Fed raised rates by 25 basis points last month to 3.75%-4.00%, its first hike in three years. CME FedWatch showed the odds of another hike at the Oct. 27-28 meeting falling to about 37.1% from 68.6% a week earlier. An ISM survey showed factory-gate price pressures rising, with the input-price measure up to 77.9 from 71.1.

U.S. Second-Quarter GDP Revised Up to 2.2%, Above Expectations

Source: Fox Business

The U.S. economy grew at a faster pace than expected in the second quarter, according to the Commerce Department's final estimate. The Bureau of Economic Analysis said GDP grew at an annualized 2.2% in April-June, above the 1.5% economists polled by LSEG expected. After 2.1% growth in the first quarter, the economy grew about 2.15% in the first half.

The BEA said consumer spending, investment and exports drove the gain, with imports also rising. Investment was led by nonresidential structures, mainly data centers plus commercial and healthcare construction. Real estate and rental leasing, information, durable-goods manufacturing, and finance and insurance contributed most, while transportation and warehousing, retail trade and nondurable-goods manufacturing were drags.

Real final sales to private domestic purchasers rose 4.6%, revised up 0.4 percentage point. EY-Parthenon chief economist Gregory Daco said the firm now expects GDP growth near 2.5% in 2026.

U.S. 30-Year Mortgage Rate Hits 7.28%, Highest in Nearly Three Years

Source: CNN Business

Mortgage rates keep climbing. The average 30-year fixed mortgage rate rose to 7.28% this week from 7.03% last week, according to Freddie Mac data released Thursday, the sixth straight weekly increase and the biggest one-week jump in nearly four years. Rates are now at their highest level since November 2023.

Turmoil in the bond market is driving rates higher. The 10-year Treasury yield has risen in recent months as investors worry the Iran war and increased government spending could stoke inflation and push the Fed toward higher rates for longer.

Adjustable-rate mortgages (ARMs) are regaining popularity. Joel Kan, deputy chief economist at the Mortgage Bankers Association, said ARM rates are about 80 basis points below fixed-rate loans and accounted for 10.3% of applications, the highest share since October 2025. Buyers can also lower their effective rate through assumable loans or rate buydowns.

Fed Vice Chair Jefferson: Inflation Still Too High, But More Time Needed

Source: Yahoo Finance

Federal Reserve Vice Chair Philip Jefferson struck a more cautious tone than several colleagues this week, acknowledging inflation remains too high while urging patience as bond markets push long-term yields higher. He said that since the September meeting yields across the term structure have increased further, a sign investors are reassessing the macroeconomic landscape, and that policymakers will need more time to reach their own judgment.

New York Fed President John Williams said Tuesday that after raising rates in September he sees no need for urgency and that there is time to gather more information. Their comments are likely to reinforce market expectations that the Fed will not hike again this month and will instead wait until December.

Jefferson said the economy faces a cascade of shocks, including rising energy prices, the AI build-out and trade-policy changes, which the Fed cannot view in isolation. He supported last month's hike as an important step to keep long-term inflation expectations anchored. Markets priced the odds of an October hike at about 26% on Thursday, down from 70% on Monday.

10-Year Treasury Yield Touches Highest Level Since 2002

Source: Yahoo Finance

U.S. stocks rose Thursday even as long-term bond yields climbed. The 10-year Treasury yield, a benchmark for mortgages and other loans, rose to 5.33%, its highest level since 2002.

Brent futures for November delivery were little changed near $103 a barrel. Tech stocks (XLK) rose modestly, with AI chip leader Nvidia (NVDA) up less than 1%. Micron's (MU) strong earnings kept optimism around the AI trade, but the memory maker's shares fell 2% as gross margin slipped to 86.25% from 87% sequentially.

Other stocks Yahoo Finance readers were watching included IBM, Alphabet (GOOGL, GOOG) and Microsoft (MSFT).

U.S. Presses Europe to Release Diesel Reserves as Trump Weighs Export Ban

Source: NBC News

The Trump administration ramped up a pressure campaign Thursday to convince European allies to release diesel from national emergency stockpiles. The White House says extra European diesel would increase global supplies and potentially keep a lid on soaring prices. The average U.S. diesel price has soared 70% since the war with Iran began, hitting $6.38 a gallon Thursday, according to AAA.

Treasury Secretary Scott Bessent posted on X on Thursday that European partners should accelerate delivery on existing commitments and make additional supplies immediately available. Trump later told reporters the U.S. may ask Europe to release some emergency reserves. Earlier in the week, Energy Secretary Chris Wright had sounded confident, but by Thursday evening no announcements had materialized.

The EU was noncommittal. European Commission energy spokesperson Anna-Kaisa Itkonen said the bloc is in very close contact with member states and holding high-level contacts with Washington. Meanwhile, Trump said Wednesday he is considering an export ban on U.S. diesel, effectively the opposite of what the U.S. is asking Europe to do, and one that would hit Europe particularly hard.

Treasury: Over 60 Million Children Auto-Enrolled in Trump Accounts

Source: CNBC

More than 60 million American children under 18 have been automatically enrolled in Trump Accounts, the Treasury Department said Thursday in an announcement provided exclusively to CNBC. Treasury proposed regulations Tuesday to begin the auto-enrollment process, which was completed by Thursday.

Trump Accounts, also known as 530A accounts, launched July 4 and are open to any U.S. child under 18 with a Social Security number. Children born from 2025 through 2028 may also claim a one-time $1,000 pilot contribution from Treasury. Treasury Secretary Scott Bessent said millions of children have already enrolled and, with automatic enrollment, over 60 million more eligible children now have an account ready to be claimed.

Treasury will also allow stock donations to Trump Accounts, which could boost large-scale private giving. Notably, the update lets the accounts hold donated individual stocks, a change from prior rules that allowed only diversified, low-cost funds; donated stocks generally must be held five years before sale. Auto-enrollment alone does not trigger the $1,000 deposit, so families must still claim it. As of mid-September, about 7 million to 8 million children had signed up.