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Market Data Table

Breakfast News: Nike Bets on a Decade-Long Rebuild

July 1, 2026

Tuesday's Markets
S&P 500 7,499 (+0.79%)
Nasdaq 26,214 (+1.52%)
Dow 52,319 (+0.26%)
Bitcoin $58,655 (-2.78%)

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Chart showing Nike's earnings per share over the past five years, going from just under $1.20 in the second half of 2021 to $0.72, which includes a tariff refund of $0.52, in the first half of 2026.

1) Nike CEO Admits Sportswear Still Lagging

Nike (NYSE:NKE) -- recommended in Stock Advisor by Team Hidden Gems -- quickly dipped 10% after reporting full-year results before settling around 3% down ahead of the market open, following a mixed set of fourth-quarter earnings. The quarter beat Wall Street expectations, but relied on a $986 million tariff refund to do so. A number of revenue sources are showing improvements in North America, but the phrase "declines in Greater China" was a notable feature across the latest update.

"Overall, the results aren't there yet": CEO Elliott Hill added, "We know we're not living up to our full potential, particularly in Nike Sportswear and Jordan streetwear, where sell-through remains challenged." But speaking of "building Nike the right way, not for the next quarter, but for the next decade," he noted, "We've now delivered five consecutive quarters of double-digit growth in Nike Running, and over that period, we've added roughly $1 billion to our running business."
"Fiscal 2026 won't be pretty on [the] earnings side": TMF Chief Investment Officer Andy Cross wasn't wrong. Full-year diluted earnings per share came in at $2.10 for just a 3% fall -- but only after a $0.52 contribution in Q4 from tariff repayments. Management offered no specific guidance for fiscal 2027, but expect further revenue decline in the first half.

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2) June Sees Big Shift in Tech Stock Trading

A volatile June saw the S&P 500 lose 1.1% as investor enthusiasm shifted from artificial intelligence (AI) hyperscalers to chipmakers. Micron (NASDAQ:MU) gained 19% over the month -- and is up 304% year to date -- while Microsoft (NASDAQ:MSFT) suffered a 17.2% month-over-month fall. The Nasdaq, meanwhile, slipped 2.8%.

New Federal Reserve chair setting tighter-lipped era?: Kevin Warsh will make his first speech since his first policy meeting two weeks ago, scheduled for 9:30 a.m. ET. He's previously said the Fed should offer less guidance, believing markets should react to data rather than Fed forecasts. Will we see an interest rate hike soon? The CME FedWatch tool puts the chance at 33.7% for the Fed's July meeting and up to 67% for September.
Manufacturing looking stable?: Today also brings the Manufacturing Purchasing Managers' Index (PMI) for June, expected to remain stable at 55.7 -- where anything over 50 means the sector is expanding.

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3) The News Behind the Moves: GIS, FDS, and STZ

General Mills (NYSE:GIS) reported full-year net sales of $4.6 billion this morning, up 1% year over year (YOY) and in line with expectations, following an 8% sales fall in the third quarter. Focus shifts to restoring profitable organic net sales growth, with a new target of between 1.5% down and 0.5% up in fiscal 2027.
FactSet (NYSE:FDS), recommended in Rule Breakers, posted a 6.4% YOY increase in GAAP revenues in this morning's Q3 update, following accelerating annual subscription value growth in Q2. The company reaffirmed its full-year outlook from March 31 -- and the stock gained 2.5% on the news.
Constellation Brands (NYSE:STZ) reported a Q1 beat in beer segment performance yesterday. Net sales still declined 3% compared to the same quarter last year, but EPS popped 31% YOY -- though only 7% on a comparable basis. Earlier in the year, Fool analyst Emily Flippen noted the harsh reality that "Alcohol consumption in the United States has been declining, and the rate of that decline has accelerated." The stock rose close to 3% before today's open.

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4) Report: Microsoft Set for More Layoffs

Microsoft is planning to announce a new round of job cuts, possibly as early as next week, says Business Insider. In addition to sales and consulting roles being affected, the Xbox gaming division is also said to be in the line of fire. It follows an earlier report by The Information of alleged plans to spin out Xbox, perhaps into a wholly owned subsidiary.

"Microsoft has sometimes cut jobs around the start of its new fiscal year on July 1": Business Insider noted this round is expected to be smaller than previous years, hitting less than 2.5% of the workforce. This time a year ago, Microsoft shed 4% of its workforce.
2026 spending plan stunned Wall Street: Employment cost savings should help fund plans to spend around $190 billion building data centers during the calendar year, way above analyst expectations of $155 billion. Shareholders will be hoping to see their 23% year-to-date stock fall reversing.

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5) Today's Take: Subscriptions Worth Keeping

For me it's utilization first and foremost. If I ain't using it, I ain't keeping it. -- Jason Moser, Team Rule Breakers
If existing customers keep spending more each year (for software companies specifically, if net retention rate is above 100%), that's a sign a business has staying power. -- Meilin Quinn, Team Hidden Gems

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6) Your Take

What stocks have you added to your portfolio in the last few weeks, and why?

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