Gold futures add to record in eight-day win streak; Citi sees gold up to $3,500 by year-end. (00:22) Nike (NKE) turns lower after guiding for a double-digit FQ4 revenue decline amid global headwinds. (01:12) Florida to weigh proposal to end property taxes. (02:10)Episode transcripts seekingalpha.com/wsb.Show links: Biggest stock movers Friday: Quantum stocks, FDX, and moreTrump to announce new Air Force contract for next-gen fighter jetNvidia teams up with French quantum computing start-up PasqalFedEx targets $2.2B DRIVE savings for FY25 amid strategic network transformationSign up for our daily newsletter here and for full access to analyst ratings, stock quant scores, dividend grades, subscribe to Seeking Alpha Premium at seekingalpha.com/subscriptions.
Chapter 1: What are the key highlights in today's Wall Street Breakfast?
Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. Good morning. Today is Friday, March 21st. I'm Julie Morgan. Gold notches its eighth straight gain. Nike warns of headwinds and Florida lawmakers are proposing major tax relief.
Chapter 2: How has gold performance been in recent sessions?
Gold futures eked out another record high on Thursday, marking the eighth straight session that front-month gold settled higher, climbing 5% over that span. Front-month COMEX gold for March delivery finished higher by 0.1%, to a new record high settlement of $3,040 per ounce. But front-month March silver ended 0.5% lower to $33.78 per ounce, its third loss in four sessions.
Chapter 3: What is Citi's outlook for gold prices?
Citi raised its price forecast for gold futures to $3,200 per ounce within the next three months. That's up $200 per ounce from the firm's previous outlook, possibly climbing as high as $3,500 by the end of the year if fears of growing U.S. economic woes take hold. Nike turned lower in the post-market session after the company warned that it faces a tough quarter.
Chapter 4: Why is Nike experiencing a revenue decline?
During the earnings call, Nike management said the company saw momentum with consumers through athlete storytelling, performance products, and big sports moments. The year-over-year revenue decline was led by a 17 percent drop in Greater China and consumer discretionary pressures in North America.
Chapter 5: What challenges is Nike facing in Q4?
The lower gross margin rate during the quarter was said to be due to higher markdowns, the impact of clearing inventory, and channel mix headwinds. For Q4, Nike expects headwinds to revenue and gross margin to be at a peak amid volatile FX, tariff pressure, and global macroeconomic weakness. Revenue during the quarter is expected to be down at the low end of a negative mid-teens range.
Chapter 6: What property tax reforms are proposed in Florida?
while gross margin is seen retreating quarter over quarter and year over year. Pre-market, Nike is down nearly 5%. Florida lawmakers have put forward multiple bills aimed at easing the burden of homeownership, including reducing property taxes and even ditching them completely.
State Senator Jonathan Martin, a Republican from Fort Myers, this week filed a bill calling for an official study to establish a framework for eliminating property taxes in Florida. The framework should aim to replace property tax revenues through budget cuts. sales-based consumption taxes, and locally determined consumption taxes.
Florida Representative Ryan Chamberlain, a Republican from Bellevue, has filed a proposal that would create a $100,000 tax exemption on all properties and a bill for a 2% cap on annual property tax revenue growth. And another proposal, a state senator, a Republican from Spring Hill, proposed expanding the homestead exemption to $75,000 from $50,000.
According to the nonprofit Florida Policy Institute, Florida's property taxes make up 18% of county revenue, 17% of municipal revenue, and 50 to 60% of school district revenue. It said that eliminating property taxes could create a revenue shortfall of about $43 billion, requiring substantial cuts to essential services or additional sales taxes to fill the gap.
Florida Policy Institute said this would disproportionately impact low- and middle-income residents. Governor Ron DeSantis, in his State of the State address, said he supports lawmakers' efforts to bring relief to property owners, but affirmed that state taxes would not be raised to achieve this. Now for a look at what's trending on Seeking Alpha.
President Trump is set to announce a new Air Force contract for next-gen fighter jets. NVIDIA teams up with French quantum computing startup Pascal. And FedEx targets $2.2 billion in drive savings for fiscal year 25 amid strategic network transformation. Now let's check in to see the state of the markets ahead of the opening bell. Dow, S&P and Nasdaq futures are in the red.
Crude oil is down 0.2% at $67 a barrel. Bitcoin is down 2% at $84,000. In the world markets, the FTSE 100 is down 0.4% and the DAX is down 0.5%. Quantum computing is on our list of the biggest movers of the day pre-market. QUBT is down 11%. Shares of quantum computing firms plunged after NVIDIA CEO expressed skepticism about the industry's near-term viability.
On today's economic calendar, at 1 p.m., the Baker Hughes rig count. That's it for today's Wall Street Breakfast. Thanks for listening. To take full advantage of Seeking Alpha with coverage on significant stocks and ETFs, become a premium subscriber. Check out seekingalpha.com slash subscriptions. I'm your host, Julie Morgan. Go out and make it a great day.
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