- The Fed is expected to keep interest rates on hold at its March 20th meeting. Recent US inflation reports have dampened expectations for rate cuts by June.
- Nike and FedEx are scheduled to announce their third quarter results on March 21st. Nike is facing challenges, and analysts are lowering their EPS estimates. FedEx's fair value analysis suggests upside potential.
- Possible TikTok ban: The bill passed by the U.S. House of Representatives requires ByteDance to sell TikTok or face a ban in the U.S., subject to 165 days of legal challenge after President Biden signs it. A grace period is provided.
- Subscribe to InvestingPro today for less than $9 a month and never miss a bull market again!
A professional review of the week's major stock market events.
FED interest rate determination
The Fed is scheduled to meet on March 20th to make a decision on , but it is widely known that interest rate policy remains unchanged.
Stock markets suffered last week after reports of persistent inflation dampened expectations that the Fed could cut interest rates before its June meeting.
Investors will be paying close attention to the Fed's interest rate outlook and comments from Fed Chairman Jerome Powell as indicators of the future direction of monetary policy.
This event could have a significant impact on this year's price forecast. stay tuned.
Nike and FedEx earnings preview
Nike (NYSE:) and FedEx (NYSE:) are scheduled to report their third-quarter results after the market closes on March 21st.
Wall Street expects Nike's EPS of $0.75 and revenue of $12.28 billion. Several analysts lowered their price targets for Nike this week. For example, Citi adjusted its price target from $135 to $125, but still recommended a Buy.
Citi pointed to several issues currently facing Nike, including a decline in market sentiment regarding its sales outlook since the release of its second-quarter results. Despite improvements in inventory management, challenges such as overstocking in North America, continued high promotional activity, and cautious ordering by retailers have been noted.
Additionally, economic uncertainty in China and Europe, as well as increased competition from Adidas (OTC:), which is regaining market share, are increasing pressure on Nike.
InvestingPro's EPS Forecast Trend shows trends in analyst forecasts for Nike's EPS for the coming quarters. Analysts have lowered their EPS estimates for the current quarter by 5.4% in the past 12 months, from 0.80x per share to 0.76x. This reduction was primarily made after the second quarter report in December 2023.
FedEx's Q3 consensus estimates are for EPS of $3.53 and revenue of $21.9 billion.
Some analysts have also recently lowered their price targets for FedEx. Goldman Sachs, for example, lowered its price target to $291 from $293 and maintained a buy rating.
This revision reflects an expected softening in B2B activity, a shift to economical rather than preferred international shipping due to the global economic downturn, and the adverse weather conditions in January that multiple carriers cited during the fourth quarter earnings season. reflects the potential impact of
However, InvestingPro's fair value analysis suggests FedEx stock could rise about 12%, while Wall Street analysts expect it to rise about 16%.
TikTok ban proposal
On Wednesday, the US House of Representatives passed a bill requiring TikTok's Chinese owner ByteDance to sell the platform within six months or face a ban in the US.
The bill is currently scheduled to be introduced in the Senate, but its future is less clear because senators are divided on the bill.
The bill would give ByteDance, which has about 170 million users in the U.S., 165 days to mount a legal challenge after President Joe Biden signed the bill, which he said he intended to sign last week. I admit it.
TikTok CEO Shou Zi Chew said last week that the company would take legal action if necessary.
***
To stay on top of market trends and what they mean for your trading, be sure to check out InvestingPro. As with any investment, it is important to do extensive research before making a decision.
InvestingPro helps investors make informed decisions by providing comprehensive analysis of undervalued stocks with significant upside potential in the market.
Subscribe here for less than $9 a month and never miss a bull market again!
new year
*Readers of this article can save an additional 10% on annual and 2-year Pro plans using codes OAPRO1 and OAPRO2.
Disclaimer: This article is written for informational purposes only. This does not constitute an investment solicitation, offer, advice or recommendation and is not intended to encourage the purchase of any assets in any way. We would like to remind you that investment decisions and associated risks are borne by investors, as any type of asset is evaluated from multiple perspectives and is highly risky.