We've curated a vital selection of news that will keep you abreast of the recent significant developments. Our key stories offer insights into the strengthening US Dollar's market dynamics, Bitcoin's potential resurgence, Nike's latest financial results, and an unexpected surge in the US economy.
Dive in for these essential updates!
US economic growth expanded much faster in the first quarter
The US economy saw more robust expansion in Q1 2023 than initially thought, with the annualized growth rate revised from 1.3% to 2%, significantly surpassing the 1.4% expectation, according to the Commerce Department. This was largely due to revisions in data on exports, consumer and government spending, and housing business investment. Notably, consumer spending — two-thirds of economic output — grew from 3.8% to 4.2%, with Americans spending more on services, particularly healthcare.
Trading involves significant risk of loss.
Nike stock slides after quarterly profit misses Wall Street estimates
Nike's Q4 profits fell short of expectations, leading to a roughly 3% drop in its stock post-report. Gross margins declined to 43.6% from 45% compared to the same period the previous year. This reduction was attributed mainly to increased product input costs, higher freight and logistics expenses, more markdowns, and ongoing unfavorable changes in net foreign currency exchange rates, albeit partially mitigated by strategic pricing actions.
As per Bloomberg consensus estimates, Nike's revenue was $12.83 billion, exceeding the expected $12.59 billion, while adjusted EPS was $0.66, slightly below the forecasted $0.67. The actual gross margin of 43.6% also exceeded the expected 43.5%.
Explore Stocks on NAGA
Trading involves significant risk of loss.
Bitcoin needs a confirmed break of $31k to regain bullish momentum
Bitcoin has been exploring levels not seen since June 2022, due to recent positive developments. However, the late-April high of $31k remains a tough resistance point, with past attempts to break through proving unsuccessful. The ongoing price dynamics suggest a bullish pennant pattern, hinting at a potential significant upward movement if this pattern persists. Bitcoin's bullish trend is further reinforced by a series of higher lows over several months, as well as three moving averages showing positive signals.
If Bitcoin succeeds in breaking above $31k, it could trigger a new surge, with $32.4k as the next resistance level, followed by $37.3k, according to Nick Cawley, Senior Strategist.
Trading involves significant risk of loss.
US Dollar strengthens following hawkish remarks by Fed Chief Powell
The US Dollar experienced a rebound, reflected by a 0.5% rise in the index to 103.00, after Federal Reserve Chairman Powell's hawkish comments during an ECB-hosted forum in Sintra, Portugal. Powell's remarks indicated that the current policy setting might not be sufficiently restrictive, suggesting further tightening ahead, with most Fed officials supporting two more rate hikes this year.
He also stated that he does not foresee core inflation reaching 2.0% until 2025, hinting that high rates could be maintained over a prolonged period to achieve price stability, which may rule out rate cuts in 2024.
Trading involves significant risk of loss.
This concludes our weekly recap. Have a great weekend and see you next week! 👋
