👟 Nike beats estimtes

and jobless claims drop as GDP rises

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Good morning investors! Dow yesterday ended with narrow gains to snap 10-day losing streak, its longest in 50 years, as BTC fell under $100,000.

Today we cover:

  • US jobless claims drop

  • US GDP is growing

  • Nike beats estimates

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📊 Economy and News 

U.S. Jobless Claims Drop as Labor Market Slows Gradually

The number of Americans filing for unemployment benefits fell sharply last week, reversing the previous week's increase and pointing to a gradual labor market slowdown. Initial claims decreased by 22,000 to a seasonally adjusted 220,000 for the week ending December 14, beating economists’ expectations of 230,000. This follows a volatile period in claims data, which saw a prior week jump of 17,000.

Unadjusted claims dropped significantly by nearly 58,000, with notable declines across major states like New York, California, and Texas. Meanwhile, broader economic data revealed robust consumer spending drove stronger-than-expected growth in the third quarter, underscoring the economy’s resilience despite elevated inflation.

The labor market appears to be easing in a controlled manner, with conditions still looser than pre-pandemic levels. But, we must mention that Philly Fed's manufacturing gauge has fallen to a 20-month low.

Global hits:

About BTC: El Salvador's bitcoin wallet to be sold or discontinued after deal with IMF. However, the country says that it will continue to invest in the cryptocurrency (despite the deal). On the other hand, Congress is discussing bill to allow Fed to hold Bitcoin, but Powell insists that Fed cannot hold BTC.

U.S. Economy Sees Stronger Q3 Growth on Consumer Spending

The U.S. economy expanded at an upwardly revised annualized rate of 3.1% in the third quarter, boosted by robust consumer spending, according to the Commerce Department. This marks an increase from the previously reported 2.8% pace and surpasses economists' expectations of no revision.

The revised figures reflect stronger consumer spending, which grew at a 3.7% pace, and improved export growth, offsetting weaker private inventory investment and higher imports. Domestic demand, excluding government spending and trade, rose at a solid 3.4% rate, outpacing the second quarter's 2.7% growth.

While national after-tax profits saw a slight decline of 0.4%, gross domestic output, a blend of GDP and gross domestic income, grew at an upgraded 2.6% rate, underscoring the overall vitality of the economy.

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📈 Stocks

S&P 500 5,867.08 (-0.087%)
DJIA 42,342.24 (+0.036%)
NASDAQ 19,372.77 (-0.10%)
BRENT CRUDE 72.66 (-0.99%)
* Prices as of Dec 20th, 12:20 AM UTC

Nike beats estimates

Nike reported better-than-expected fiscal Q2 2025 earnings as new CEO Elliott Hill pledged swift action to revive growth. Despite low expectations, the company outperformed Wall Street estimates, with earnings per share at 78 cents versus the anticipated 63 cents and revenue of $12.35 billion exceeding the $12.13 billion forecast. Shares surged 8% in after-hours trading.

Net income for the quarter fell to $1.16 billion, or 78 cents per share, from $1.58 billion, or $1.03 per share, a year earlier. Sales dropped 8% to $12.35 billion, reflecting weaker demand and efforts to clear excess inventory through steep discounting.

Hill, who rejoined Nike after a prior stint in the 1980s, is focused on revamping the company’s product strategy and restoring its market dominance. Flagship lines like Air Force 1s, Dunks, and Air Jordan 1s have oversaturated the market, prompting supply cuts expected to weigh on short-term sales.

Nike’s store and online sales fell 13%, and wholesale revenues dropped 3%. Gross margins declined slightly to 43.6%, impacted by discounting. Inventory remained flat year-over-year at $8 billion, with lower input costs offsetting unit increases.

The Converse brand struggled, with sales down 17% to $429 million, missing analyst estimates. Nike’s challenges have also affected retailers like Foot Locker, which reported weak demand for Nike products. Investors may need patience as the company works to regain its footing.

Exciting: US new vehicle sales set to rise 7.3% in December. Also, FDA says Eli Lilly’s weight loss drug Zepbound is no longer in shortage.

Good to know: Amazon workers at seven U.S. facilities walked off the job early on Thursday during the holiday shopping rush, aiming to pressure the retailer into contract talks with their union. Elsewhere, US accuses CVS of filling, billing government for illegal opioid prescriptions.

💵 Personal Finance

Bitcoin Soars Yet Advisors Don’t Want It

Bitcoin surged past $108,000 this week, continuing its post-election rally as President-elect Donald Trump unveiled pro-cryptocurrency policy plans. It has taken a break and is now under $100,000 but despite the optimism in digital asset markets, financial advisors remain cautious about recommending crypto as part of long-term portfolio strategies.

Certified financial planner Marianela Collado emphasized a conservative approach, advising clients to invest only what they can afford to lose and avoid relying on crypto for retirement needs. Regulatory uncertainty remains a significant concern for many advisors.

Advisors Hesitate, but Interest Grows
A Cerulli Associates survey in April revealed that 59% of financial advisors neither use nor plan to adopt cryptocurrencies, while 26% expect to consider crypto in the future. Currently, 12% incorporate crypto based on client requests, with less than 3% doing so on their own initiative.

ETFs: A Simpler Path to Crypto Investing
For those exploring crypto, advisors often recommend exchange-traded funds (ETFs) as an accessible option. Spot bitcoin ETFs, introduced in January, now manage over $100 billion in assets, making them a preferred choice for investors.

Ashton Lawrence, a CFP at Mariner Wealth Advisors, suggests limiting crypto investments to 1% to 5% of a portfolio, tailoring allocations to individual risk tolerance and financial goals. While crypto continues to gain traction, advisors stress careful consideration of its inherent volatility and evolving regulatory landscape.

Here’s an old but interesting video on the topic:

💰 Be a Better Investor

“One of the greatest disservices you can do a man is to lend him money that he can’t pay back.”

Jesse Jones

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👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.