Nike Earnings Put Consumer Strength to the Test 01/10/2026
Market Wrap
U.S. stocks finished mixed Wednesday, closing out September as softer inflation data failed to fully offset pressure from elevated Treasury yields and expectations that interest rates could remain higher for longer.
The S&P 500 fell 0.3%, while the Dow Jones Industrial Average dropped more than 440 points, or 0.9%. The Nasdaq Composite bucked the decline, gaining 0.2%.
The August PCE Price Index, the Federal Reserve's preferred inflation gauge, rose 3.4% from a year earlier, slowing from 3.7% in July. But stronger labor-market data complicated the picture, with ADP reporting 90,000 private-sector jobs added in September, above expectations for 68,000.
Treasury yields remained elevated as investors weighed easing inflation against continued strength in the economy. Minneapolis Fed President Neel Kashkari also cautioned that inflation remains too high, keeping uncertainty around the Fed's next rate decision firmly in focus.
September proved challenging for much of the market. The S&P 500 lost 0.5% for the month and the Dow fell 4.3%, while the Nasdaq gained 1.9%. For the third quarter, the S&P 500 and Nasdaq each advanced about 2%, while the Dow declined 2.7%.
Technology remained in focus as Google (GOOGL) rolled out Gemini 4 Argon, its most advanced AI model.
Attention now turns to Thursday's initial jobless claims, followed by Friday's September employment report, as investors look for further clues on the labor market and the path of interest rates. Nike (NKE) earnings will also be in focus after the closing bell.
Micron Beats Estimates as AI Memory Demand Fuels Record Growth
Micron Technology (MU) reported better-than-expected fiscal fourth-quarter results and delivered a strong outlook as booming demand for artificial-intelligence infrastructure continues to drive an unprecedented memory-chip cycle.
Adjusted earnings came in at $33.42 per share, topping the $31.61 consensus estimate, while revenue reached $54.23 billion versus $51.07 billion expected. Sales nearly quadrupled from $11.32 billion a year earlier.
The company also forecast fiscal first-quarter revenue of about $61.5 billion and adjusted earnings of $38.15 per share, both comfortably above Wall Street expectations.
AI remains the central growth driver. Micron is the only U.S.-based producer of high-bandwidth memory, or HBM, a critical component for AI accelerators from Nvidia (NVDA) and Advanced Micro Devices (AMD). Fourth-quarter DRAM revenue surged 343% from a year earlier to $39.8 billion, accounting for 73% of total sales.
CEO Sanjay Mehrotra said Micron has a strong pipeline of future HBM products and is working with Nvidia on what he described as the industry's first custom HBM implementation.
The global shortage of advanced memory has pushed prices higher as suppliers struggle to keep pace with AI demand. Micron is investing $250 billion in new manufacturing capacity, including facilities in New York and Idaho.
Micron shares have surged more than 500% over the past year as investors bet that accelerating AI infrastructure spending will keep demand for advanced memory elevated. The stock edged higher in extended trading following the results.
Stocks on the Move
- Jabil (JBL): Shares fell more than 7% despite fiscal fourth-quarter results beating expectations. Adjusted earnings came in at $4.40 per share on revenue of $10.62 billion, both above estimates. First-quarter and full-year earnings guidance also topped expectations.
- Concentrix (CNXC): Shares gained 5% after fiscal third-quarter adjusted earnings beat expectations. However, current-quarter earnings and revenue guidance came in below estimates, while management said the transition toward AI is putting pressure on revenue.
- Moderna (MRNA): Shares dropped 7% after Citi downgraded the pharmaceutical company to sell, arguing that its current valuation is difficult to justify. The bank's price target implies roughly 60% downside from Tuesday's close.
- FormFactor (FORM): Shares jumped 8% after Deutsche Bank initiated coverage with a buy rating, citing rising semiconductor testing demand and the company's position as a second source of probe cards for Nvidia GPUs manufactured by TSMC.
Watchlist: MU, SPCX, MSTR, GOOGL, META, TSLA, SNDK, MRNA, JBL, ACN, AMD, AAPL
Key Economic Events Today
Economic Data (EST)
- 08:30 AM — USD Unemployment Claims
- 09:05 AM — USD FOMC Member Barkin Speaks
- 09:05 AM — USD FOMC Member Collins Speaks
- 09:05 AM — USD FOMC Member Schmid Speaks
- 09:45 AM — USD Final Manufacturing PMI
- 10:00 AM — USD ISM Manufacturing PMI, Prices
- 10:00 AM — USD Construction Spending
- 10:00 AM — USD FOMC Member Waller Speaks
- 01:30 PM — USD FOMC Member Jefferson Speaks
Earnings
Before Market Open: Accenture (ACN), McCormick (MKC), Acuity Inc. (AYI)
After Market Close: Nike Inc. (NKE)
