Fed's Goolsbee Says Inflation Side Still a Concern — Market Talk
1343 ET [Dow Jones]--Chicago Fed President Austan Goolsbee said that the labor market has been steady, and the inflation side of the central bank's dual mandate is still where the problem is. In an interview with Fox Business, Goolsbee said there is "plenty of room for anything to be on the table" when asked about the need for future rate hikes. After reviewing the PCE August inflation report, Goolsbee said it wasn't great, but noted some earlier readings were revised to be a little bit more modest. When the Fed's September Summary of Economic Projections were released, Goolsbee said he seems to be one of the more optimistic people on the committee. ([email protected] )1201 ET - Nike's stock may still not have hit its bottom, as questions about its future performance linger, UBS analysts say. The analysts Nike's sales guidance reflects weak demand in a marketplace with excess inventory, where pulling back on promotions could hurt revenue. Nike's reset in its sportswear and Jordan businesses could also take a while to show results, as trend cycles and a lack of brand momentum are weighing on the divisions, the analysts say. Nike's margins are becoming more exposed because the company is on its third big cost-savings initiative, the analysts say. That means any drop in sales could hurt margins more than Wall Street expects, they say. ([email protected])1157 ET - One of crypto's bigger gainers right now is also one of its smallest market sectors, says Zach Pandl of Grayscale in a note. The AI Crypto Sector, or tokens that use AI tools as part of their blockchain platforms, posted gains that outshined larger peers - led by NEAR, which rose 183% in September, says Grayscale. Other tokens in the sector that posted big gains include Bittensor, World, and Venice - gaining as much as 70% for the month. Combined, the sector is worth roughly $15 billion, allowing for a lot of room for further growth. Last month was a strong one for cryptocurrencies as a whole, following the rally in flagship cryptocurrency bitcoin. ([email protected])1153 ET - Nike's problems appear to be growing, rather than shrinking, BNP Paribas analysts say. Two years ago, Nike laid out the "Win Now" strategy, which was slated to be done by the end of 2025. It was pushed out to the end of 2026 and, on Thursday, executives didn't mention the old strategy. "This would suggest that the rightsizing of the business may last for several years to come," the analysts say. Nike previously talked about problems isolated to its Jordan Streetwear brand, but on Thursday discussed the entire Jordan brand needing to be rightsized, not just streetwear, the analysts say.([email protected])1152 ET - Nike's results reflect problems that are bigger than previously believed, Williams Trading analysts say, downgrading the stock to a hold. The analysts expected Nike would have a big chunk of new product offerings for spring 2027, but that didn't pan out. Full-year guidance was below consensus estimates, they say, and the company's product-creation engine is stalled. It currently takes at least 18 months for a product to move from creation to market, the analysts say, adding that this is too long. While Nike laid out a plan to increase efficiency through 2031, the analysts expect sales and margins will remain pressured through at least the third quarter of fiscal 2028. Shares are down 6%. ([email protected])1144 ET - The respite from September payrolls was brief. Treasury yields resume their rise as markets turn attention to inflation data due in a couple of weeks. "For the Fed, the mediocre September jobs report isn't bad enough to shift the focus away from inflation," Fifth Third's Bill Adams writes. The October decision "will probably be swayed by the September CPI and PPI reports, geopolitical developments, and prices at the pump between now and then." Oil pares losses and Brent is back to $100. The 10-year rises to 5.252% from its intraday low of 5.155%. The two-year increases to 4.812% from 4.701%. ([email protected]; @ptrevisani)1116 ET - Bitcoin prices briefly rose back to the level they topped out at in last week's surge, but appear to have met resistance and are now paring gains. Bitcoin is now up 1.6% to $85,938 for the day, after topping out at $87,090 earlier. Analysts have identified $87,000 as a key resistance point for bitcoin, with a sustained rally seen as possible if the token can cross over $90,000. Bitcoin has been able to maintain its current levels despite the surge seen in Treasury yields — which is puzzling some analysts. "If a market is rallying on seemingly bad news, then there's something amiss," says James Stanley of StoneX in a note. Ethereum climbs 1%, and XRP is up 1.9%. ([email protected])1055 ET - Ford Motor expects the financial hit from a recent production issue will be contained within the full-year forecast it provided in July. The automaker earlier this week disclosed a temporary production halt at a plant that makes its F-150 due to a supplier issue, a development that it said dragged on its third-quarter wholesale performance. ([email protected])0944 ET - Airbnb is set up for a period of durable growth while trading at a discount to lodging peers, KeyBanc analysts write in a note, upgrading the stock to overweight and giving it a $191 price target. "Our thesis rests on three key pillars," the analysts write. "1) core growth appears increasingly durable and product-led; 2) hotels are emerging as a credible second growth engine; and 3) Airbnb is positioned to be an AI beneficiary." They write that a confluence of improved products, brand engagement, and growing market penetration has accelerated Airbnb's growth, both in expansion and core markets. The analysts also see a substantial growth runway for Airbnb's hotel business, and argue that AI will be a net positive for the company rather than a source of disruption. Shares gain 1.6% to $163.01. ([email protected])0900 ET - While Nike continues to contend with a number of challenges across its business, the brand's areas of strength are only gaining momentum, Oppenheimer analysts say in a note. "The most positive aspects of the company's ongoing, now elongated repositioning effort are the increasingly clear indications of sustained sales and profit improvements within the broader performance category," they say. The analysts say they are optimistic that Nike can replicate that success in categories that continue to struggle, like sportswear and its Jordan franchise. "But such efforts are likely to take meaningful time and investment," they say. ([email protected])0853 ET - The timing of Nike's rebound continues to look further away, Truist Securities analysts say in a note. While Nike still points to green shoots for its performance product, its larger sportswear and Jordan segments continue to face further pressure, the analysts say. Weak trends in China, meanwhile, have only gotten worse, they say. "With significant wood left to chop across multiple fronts, still-growing competitive pressures, and a choppy macro - we think visibility into a potential recovery is limited and believe it's best to remain on the sidelines," they say. The analysts cut their price target on the stock to $29 from $42 and keep their hold rating. ([email protected])0850 ET - Nike's new finance chief set lower guidance for the year than Wall Street expected, guiding for a high-single digit sales decline. But while "it's tempting to think Nike's new CFO has kitchen-sinked expectations," Raymond James analysts say they see reason for the worse-than-expected outlook. The analysts point to tougher comparisons across Nike's wholesale channel in North America and for performance products, as well as further weakness ahead in China, a region they say is key for the brand's rebound. "In short, line of sight to when revenue will rebound and the magnitude of durable growth remains an area of low visibility," they say. ([email protected])