S&P 500 Futures Gain as Fed’s Preferred Inflation Gauge Shows Slowing Inflation: Live Updates

Nike shares plunged 15% in early trading Friday morning after the company reported fourth-quarter revenue of $12.61 billion, below the $12.84 billion forecast by polled analysts by LSEG.

Despite better-than-expected profits, Nike also cut its full-year forecast, sending its shares further lower.

In response, several Wall Street firms downgraded the stock on Friday, including Morgan Stanley, UBS, Stifel, JPMorgan and Raymond James.

“We are downgrading our rating from Outperform to Market Perform as we view the decline in fourth-quarter revenue and the lower FY25 guidance as indicative of NKE’s difficulty in driving a recovery in global demand,” wrote Raymond James analyst Rick Patel.

Similarly, Morgan Stanley analyst Alex Straton cited a prolonged timeline for improvement, performance volatility and potential risks of further negative EPS revisions as reasons for his downgrade from overweight to equal weight.

—Lisa Kailai Han

Here are some of the stocks moving ahead of the close:

• Nike — Nike shares fell more than 14% after the athletic retailer reported disappointing earnings for the latest quarter and cut its forecast, saying it expects a 10% drop in its sales during the current period. The company now estimates that fiscal 2025 sales will fall in the mid-single digits.
• Trump Media & Technology — Shares of Trump Media & Technology jumped more than 10% following the first presidential debate between former President Donald Trump and President Joe Biden. Many found Biden’s performance disappointing.
• Infinera — Shares of Infinera jumped 19% as Nokia announced plans to buy the network solutions provider for $2.3 billion.

Read the full list of names on the move here.

-Samantha Subin

The May reading of the core personal consumption expenditures index is scheduled to be released Friday at 8:30 a.m. ET. Economists surveyed by Dow Jones expect a 0.1% month-over-month increase. Over one year, they see a gain of 2.6%.

— Fred Imbert

European stocks were slightly higher on Friday as investors await key inflation data from the euro zone and the United States.

The pan-European Stoxx 600 index rose 0.17% at the start of the session, with the majority of sectors and major exchanges trading in the green. Mining stocks rose 0.82%, while household goods fell 0.5%.

U.S. banks are doing well after Wednesday’s results of the Federal Reserve’s stress test, according to Wells Fargo’s Mike Mayo.

“The Fed has given the banks everything they have,” the top banking analyst told CNBC’s “Closing Bell.” He added that the hypothetical scenario was “worse” than the 2008 global financial crisis. “U.S. banks are in a very favorable and resilient position,” he continued.

Mayo also said Citigroup’s results, in particular, were “a surprise.” The company’s shares were up slightly in Thursday trading and have gained about 19.7% this year.

— Sean Conlon

Besides Nike, some lesser-known stocks also moved after the bell due to financial releases.

Accolade stock, which specializes in health technology, fell more than 27%. Although it beat the expectations of analysts surveyed by FactSet for adjusted EBITDA and revenue for the fiscal first quarter, the company issued weaker-than-expected guidance for the current quarter.

The company said it expects an adjusted EBITDA loss of $8 million to $10 million in the quarter, higher than FactSet’s consensus forecast of $5.9 million. Accolade also said it expects quarterly revenue of $104 million to $106 million, compared with Wall Street’s estimate of $113.2 million.

In contrast, American Outdoor Brands climbed more than 8% on strong results in its fiscal fourth quarter. The outdoor products maker had revenue of $46.3 million, while analysts surveyed by FactSet had expected revenue of just $43.1 million.

—Alex Harring

Retail investors may not be as hungry for highly volatile stocks as their reputation suggests, according to an eToro survey.

According to the brokerage firm’s second-quarter Retail Investor Beat report, 54% of retail investors reported owning stocks in the financial services sector, compared to just 49% of technology stocks. This observation was also observed during the three previous quarterly surveys.

The survey was conducted in May, after a slight pullback in the market, and eToro’s U.S. investment analyst Bret Kenwell told CNBC that the decline appeared to be impacting the confidence of younger investors.

“Older investors let their experience work in their favor, whereas younger investors aren’t necessarily scared off…but they’re less experienced in general, and because of that, I think they’re a little bit more shaken than the older, seasoned investor,” Kenwell said.

—Jesse Book

Despite earnings that beat expectations by a wide margin, Nike shares fell about 11% in extended trading after the company posted its third revenue shortfall in four quarters and provided a cautious outlook for its new fiscal year.

Factoring in declining after-hours sales, Nike stock is down nearly 23% year to date. Only Intel and Boeing performed worse on the Dow this year.

The weakening consumer environment is weighing on sales, with revenue in North America and Asia/Latin America falling short of Wall Street expectations. CFO Matthew Friend noted in the press release that “our fourth quarter results highlighted challenges that have led us to update our outlook for fiscal 2025.”

— Robert Hum

Stock futures were little changed shortly after 6 p.m. ET.

Dow Jones futures slipped 0.1%, while S&P 500 and Nasdaq 100 futures each rose slightly.

-Alex Harring