Deep Dive
Shownotes Transcript
Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis. Good afternoon, today is Thursday, June 26th, and I'm your host, Kim Kahn. Our top story so far, Nike appears to be generating strong buzz for its upcoming Air Max Phenomena shoe, which is the company's entry into the growing snowfer category.
Resale size show prices of over $300 for the Nike release, despite the company having yet to set an official release date. The snow for category refers to a new hybrid footwear style that blends the features of a sneaker and a loafer. The upper part of the shoe is crafted from textured leather and features a strap across the vamp reminiscent of classic penny loafers.
In general, Snowfurs represent a broader shift in fashion towards hybrid, boundary-blurring designs that cater to Gen Z, now 13 years old to 28 years old, and others seeking both comfort and style. The initial release from Nike will be in a striking black colorway, pearl pink version, and what is described as a cool gray colorway. The Nike Air Max phenomenon was designed by the company in collaboration with the Serena Williams Design Crew, a rotating collective of designers who work with the tennis legend at Nike. Look
Looking ahead, Nike's Snofer could compete with versions from New Balance, Skechers, Cole Haan, Converse, also owned by Nike, and Decker's Hoka. Nike reports earnings after the bell today.
On the economic front, new orders for durable goods shot up 16.4% in May, blowing past the 8.6% rise expected and reversing April's 6.6% drop. But excluding transportation, which was boosted by airshow deals, new orders edged up just 0.5% compared with flat expected and up 0.2% in the prior month. Wells Fargo economists say a surge in aircraft orders is responsible for the leap in durable goods for May,
But even beneath the surface, underlying orders activity perked up a bit. Still, durable shipments, as well as other data out this morning on Q1 GDP, trade and jobless claims suggest a weaker first half of the year for U.S. growth. Initial jobless claims fell to 236,000 from 246,000 the week before, below the 244,000 consensus. But continuing claims rose to 1.974 million, well ahead of the expectations for 1.95 million.
and the final measure of Q1 GDP came in at a contraction of 0.5%, wider than the prior estimates of down 0.2%. Downward revision primarily reflects lower readings on consumer spending and exports that were partly offset by a downward revision on imports.
Looking to the current quarter, Pantheon Macro says the advanced economic indicators for May strengthen our conviction that headline GDP rose at roughly a 3% pace in Q2. That said, the solid print probably will be flattered by the unwinding of the same tariff-related distortions that artificially depressed headline GDP growth in Q1, rather than reflecting genuine resilience.
Among active stocks, JPMorgan maintained its overweight rating on Apple but lowered the price target on the stock to $230 from $240, citing medium-term moderation of revenue earnings and macro-led headwinds.
Analyst Samik Chatterjee said they have updated their revenue and earnings forecast to reflect the effect of a near-term pull-ahead of consumer demand on iPhones, driving a moderation in demand drivers in the back half of the year, mainly in the backdrop of an iPhone 17 lineup launch that is expected to be only incremental.
Palantir has signed a deal with a nuclear company in an effort to use artificial intelligence and boost construction of nuclear power in the U.S. The deal will see the two companies co-develop and create an AI software system known as NOS, Nuclear Operating System, specifically for the purpose of nuclear construction.
NOS is intended to help in the construction of nuclear reactors and transform the process into a data-driven, predictable process, the company said. And investor Vladimir Galkin is threatening to sell his large stake in JetBlue Airways if the airline does not turn around its financial performance through cutting costs and other measures. Galkin is believed to be JetBlue's second-largest shareholder, with a stake of around 10%. He is
He is well known as a big beneficiary from GameStop's MeanStop rally in 2021, which he then funneled into JetBlue stock between February and August 2024. In other news of note, Chinese smartphone company Xiaomi has rattled the electric vehicle market again with a new low-price electric vehicle model. Notably, Xiaomi said it racked up more than 200,000 orders for its YU7 SUV in just the first three minutes after online ordering was opened up.
Third Bridge analyst Rosalie Chen says that with a competitive starting price of 253,500 RMB, or 35,300 US dollars, the YUZ comes in at the lower end of the anticipated range, and that underscores the company's strategy to aggressively price the model against rivals like Tesla's Model Y. And in the Wall Street research corner, the Nasdaq 100 is extending its powerful rally to fresh all-time highs, but not everyone sees the surge as necessarily a good thing.
Marko Kalanovic, a noted baron, former head of global research at J.P. Morgan, says, Whatever your market view is, the NDX rally of 36% in about two months is not normal or healthy. But the Nasdaq 100 has seen broad participation during its climb. Over the past month, 65 of the 100 index constituents have posted gains, with 23 stocks rising by at least 10%.
That's all for today's Wall Street Lunch. Look for links for stories in the show notes section. Don't forget, these episodes will be up with transcriptions at SeekingAlpha.com slash WSP. And for a wealth of coverage on stocks and ETFs, go to SeekingAlpha.com slash subscriptions.