Breakfast News: Fed Chair Hunt Heats Up

Breakfast News: Fed Chair Hunt Heats Up

Source: Image Created by Jester AI.

1. Trump Mulls Picking Powell Successor Soon

The WSJ reports President Trump is considering announcing a new Federal Reserve Chairman as early as this summer, as he continues to be exasperated with the lack of interest rate cuts under the stewardship of Jerome Powell.

• "He goes out pretty soon, fortunately, because I think he's terrible": Trump issued new comments indicating he could move faster than expected, and although Powell would still serve out the remainder of term to May 2026, an early announcement could seek to undermine him.
• "If we make a mistake here, people will pay...the cost for a long time": Powell has been cautious about pushing for fast rate cuts, partly due to concerns tariffs will feed into inflation later this year. Any indication of more rate cuts should act to boost the stock market.

2. Micron Pops but Jefferies Drops

Micron (MU -2.37%) initially surged over 7% after the closing bell following a strong set of results, with an upbeat forecast on AI-driven memory chip demand, before falling back to around 2% this morning as investors mulled a potential hangover from tariff-related stockpiling.

• "We are on track to deliver record revenue with solid profitability and free cash flow in fiscal 2025": CEO Sanjay Mehrotra flagged the performance of memory modules as well as data centers, which helped drive a 37% increase in revenue versus the same quarter last year.
• 38% year over year fall in adjusted earnings per share: Stock Advisor recommendation Jefferies (JEF -0.36%) fell over 3% in early hours trading after missing earnings expectations, with a large drop in equity underwriting activity weighing on performance.

3. Spice and Swoosh Earnings Spotlight

McCormick (MKC 5.34%) is due to report before the market opens, with investors hoping the mixed performance from Q1 can be exceeded, with the potential for a rebound in demand from the Asia-Pacific region.

• Beaten earnings per share estimates 75% of the time in the past two years: Pricing and cost efficiency will be noted, partly on the impact of tariffs but also from inflation-wary consumers who are likely prioritizing value when spending.
• Traders pricing in a sizable 8% swing either way in immediate aftermath: Nike (NKE 2.02%) will release earnings after the market closes, with investors likely to look past the expected revenue and earnings fall in favor of commentary on how the transformation is progressing, with the update to fiscal 2026 outlook being key.

4. Your Take

Let's talk sneakers. How many pairs do you own? Do you favor certain ones for specific activities? Is there one brand that jumps out at you above all others? Discuss with friends and family, or become a member to hear what your fellow Fools are saying.