What’s News in Markets: Lunar Shot, Garden Delivery, Big Movers
Digest
The podcast covers several key business and economic developments. The Federal Reserve surprised many by cutting interest rates by 50 basis points, leading to a stock market rally. Intuitive Machines, a space exploration company, received a $4.8 billion NASA contract for the Artemis campaign, causing its stock to soar. Olive Garden, known for its "When you're here, you're family" slogan, is finally offering delivery through Uber, marking a shift for Darden Restaurants, its parent company. FedEx shares plummeted after the company delivered a disappointing outlook in its latest quarterly report, while Nike shares surged on news that CEO John Donahoe is stepping down, ending a tenure marked by a shift to direct-to-consumer sales that backfired.
Outlines
Market Reactions to Interest Rate Cuts and Company News
The Federal Reserve's surprise 50 basis point interest rate cut sparked a stock market rally. Intuitive Machines' stock soared after securing a $4.8 billion NASA contract for the Artemis campaign. Olive Garden announced its partnership with Uber for delivery services, marking a change for Darden Restaurants. FedEx shares plummeted due to a disappointing outlook, while Nike shares surged following the announcement of CEO John Donahoe's departure.
Keywords
Interest Rate Cut
A reduction in the target rate set by a central bank for overnight lending between commercial banks. This can stimulate economic growth by making borrowing cheaper.
Artemis Campaign
NASA's program to return humans to the Moon and establish a sustainable presence there. It aims to advance scientific knowledge and develop technologies for future space exploration.
Direct-to-Consumer
A business model where companies sell their products directly to consumers, bypassing traditional retail channels. This can offer greater control over pricing and customer relationships.
E-commerce Boom
A period of rapid growth in online shopping, fueled by factors like the COVID-19 pandemic and increased internet access. This led to a surge in demand for online retailers and delivery services.
FedEx
A global courier delivery services company known for its overnight shipping services.
Nike
A multinational corporation that designs, develops, manufactures, and sells footwear, apparel, equipment, accessories, and services.
Olive Garden
An American casual dining restaurant chain known for its Italian-American cuisine and unlimited breadsticks.
Intuitive Machines
A private space exploration company that develops and operates robotic spacecraft for lunar and planetary missions.
Q&A
What was the surprising aspect of the Federal Reserve's interest rate cut?
The Fed cut interest rates by 50 basis points, exceeding the expectations of many who anticipated a smaller 25 basis point cut.
How did Intuitive Machines' stock perform following the NASA contract announcement?
The company's stock surged by nearly 40% on Wednesday and 24% on Thursday, reflecting the significant value of the contract for the company's future prospects.
Why did Olive Garden previously resist third-party delivery services?
Darden Restaurants, Olive Garden's parent company, believed that third-party delivery eroded profits and negatively impacted the guest experience.
What was the main reason for FedEx's stock decline?
FedEx's stock plummeted after the company issued a disappointing outlook in its latest quarterly report, indicating weaker-than-expected demand in the U.S. domestic package market.
What was the key factor behind Nike's stock surge?
Nike shares rose significantly on news that CEO John Donahoe is stepping down, ending a tenure marked by a shift to direct-to-consumer sales that ultimately proved unsuccessful.
Show Notes
Space exploration company Intuitive Machines got a big NASA contract, so did its stock go to the moon? And what did investors think of getting Olive Garden delivered? Plus, why did FedEx and Nike shares go in opposite directions? Host Francesca Fontana discusses the biggest stock moves of the week and the news that drove them.
Sign up for the WSJ's free Markets A.M. newsletter.
Learn more about your ad choices. Visit megaphone.fm/adchoices
Table of contents
United States
