Friday Finances – With the FatNarwhal Issue Three

Read Time:2 Minute, 2 Second

It’s Friday, which means Friday Finances (brought to you by FatNarwhal). Here is a catch-up on all the noteworthy events that happened this week. Including the bond prices, and Nike Stock release earnings.

Bond prices fell significantly, leading rates to jump in both US and UK markets. This event caused an emergency bond-buying program in the UK. But what’s happening? Many worries that the global economy is in a massive slowdown and the constant increases in rates had a ripple effect throughout all the global markets. Therefore, having an effect that led to bonds like the 10-year bond rates to jump to 3.8%. This then led to the bond markets and stock markets selling off on both Thursday and Friday. Therefore, it might be time to look at bond prices as rates keep rising and they seem like the safest investment now.

Nike released their earnings after the market closed on Thursday, which led to the stock having a difficult day on Friday. The company was able to just beat estimates of 92 cents, reporting 93 cents a share. They also reported 12.7 billion in revenue compared to Wall Street’s estimates of 12.3 billion. The main problem that led to Nike’s 12% decline on Friday was Nike’s excess inventory. Nike had a 44% increase in inventory this quarter, which forced them to discount a lot of their goods to reduce their inventory significantly. Nike showed that they are another company getting hit hard with inventory problems just like Target and many others. It is going to be interesting to see the moves the company makes from here and the direction they take in the coming quarters.

This week the S&P 500 closed off with its third straight quarterly loss for the first time since 2009. Both the stock market and the global economies are in deep trouble right now for a while as the rate increases don’t seem to be stopping. With all this craziness happening during the downturn be sure to hedge your bets and be safe in the markets.

If you made it this far you have caught up on some of the big events that happened this week in the markets and now, it’s your decision where to go from here. And remember we are just Modern Narwhals, who do Modern Finances.

FATNARWHAL CO.