Cisco Earnings, Ackman’s Nike Stake: Market Dominance Extends
Today on Market Domination Overtime, hosts Josh Schafer and Julie Hyman break down the market close and highlight some of the major news from the trading day. The stock market averages (^DJI, ^IXIC, ^GSPC) extended their gains on Wednesday to close in the positive after the July Consumer Price Index (CPI) report showed inflation easing. Tim Murray, multi-asset strategist at T. Rowe Price Capital Markets, noted that the CPI data was in line with expectations, so the market barely reacted. However, he emphasized that the focus is shifting, and that “concerns have shifted to the labor market,” although there will be enough data before the Fed meets to assess the health of the labor market. Cisco Systems (CSCO) reported fourth-quarter results that beat Wall Street expectations on both revenue and profit. Adjusted earnings were $0.87 per share, beating expectations of $0.85. Revenues of $13.64 billion beat Bloomberg’s estimate of $13.53 billion. Morningstar equity analyst William Kerwin called Cisco Systems’ results “broadly favorable,” highlighting that the company’s fiscal 2025 outlook signals a return to growth, which he sees as “good.” Regarding the recently announced job cuts, Kerwin said he’s “not too worried,” interpreting the move as a sign of the company’s focus on profitability. The July Consumer Price Index (CPI) showed that housing costs rose 0.4% for the month. Meanwhile, mortgage applications surged to 16.8%, up from 6.9% last week. “The refinance market saw its first weekly increase in nearly two years. And looking at the broader picture, [mortgage] The interest rate market is currently at 6.5%, down one percentage point from its April 2024 high. And as the Fed has been talking about for the past few weeks, we expect one or two rate cuts this year, possibly in September or December, totaling 75 basis points.” Nike (NKE) shares are up in after-hours trading on news that billionaire investor Bill Ackman’s Pershing Square Capital Management has acquired a new stake in the sports apparel giant. Pershing Square’s 13-F filing revealed that it has acquired about 3 million shares, valuing the deal at about $229 million. Finally, Josh Schafer and Julie Hyman break down what to watch for Thursday, August 15, from Walmart earnings to the latest data on mortgage rates. This article was written by Melanie Leal.