On this episode of Stock Movers:
- Shares of Nike (NKE) fell as much as 10 percent in premarket trading as the sportswear retailer’s third-quarter guidance disappointed investors, with its turnaround hampered by weak sales in China and the Converse brand. It expects third-quarter sales to be down low-single digits, and gross margins to shrink by roughly 2 percentage points due to tariffs. North America business — a bright spot for fiscal 2Q — is expected to grow more slowly in the third quarter as product liquidation will no longer provide a big sales boost.
- Shares of Oracle (ORCL) rallied ahead of the US market open as TikTok’s long-delayed plan to separate from Chinese parent ByteDance Ltd. was put in motion Thursday when the video sharing sensation said it’s being bought by a group of buyers, led by Oracle. TikTok Chief Executive Officer Shou Chew told employees that the company and ByteDance signed binding agreements to create a US joint venture majority-owned by American investors, according to an internal memo reviewed by Bloomberg. Chew wrote that he was “pleased to share some great news” and said agreements with Oracle, Silver Lake Management and MGX have been signed. The deal is expected to close on Jan. 22, 2026, though Chew added that “there’s more work to be done” before then. Chinese regulators have yet to say whether they’ll approve the transaction.
- Shares of FedEx (FDX) edged lower in the early session as the shipping firm upgraded FY targets, but to a lower magnitude than the 2Q earnings beat as it suffers from a string of cost headwinds including the grounding of its MD-11 planes. Analysts are mostly positive on 2Q results that are boosted by peak season demand, cost reductions and customer wins in B2B health care. The non-core freight division that’s scheduled to be spun off remains under pressure.
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