🚀 Oil prices rise

Market Overview
Read time 1.4 minutes

Year To Date Performances:

1. Global oil prices jumped nearly 7% on Wednesday as military escalations between the U.S. and Iran shattered a brief pause in Middle East hostilities, sending Brent crude to $89.94 USD per barrel and West Texas Intermediate (WTI) to $84.69 USD per barrel. The spike followed statements from President Donald Trump confirming the U.S. will retaliate forcefully after Iran's Islamic Revolutionary Guard Corps launched ballistic missiles at a U.S. military base in Jordan. Although U.S. Central Command confirmed the missiles were successfully intercepted—and joint U.S.-Saudi forces conducted retaliatory strikes against Iran-aligned targets in eastern Iraq—market concerns over regional energy disruptions intensified alongside Houthi strikes targeting Saudi oil infrastructure. Energy market volatility was further amplified as traders weighed geopolitical risks against Federal Reserve Chair Kevin Warsh's monetary policy signals ahead of the upcoming FOMC interest rate decision.

2. Nike's business in Greater China has contracted 30% since 2021, marking eight consecutive quarters of year-over-year revenue declines and bringing its annual regional revenue to an eight-year low of $8.29 billion USD. Facing intensifying competition from domestic sportswear leaders like Anta and Li-Ning, Nike's market share has eroded under the "China Chic" (Guochao) movement, which promotes domestic brands over foreign names and gained momentum following 2021 boycott calls regarding Xinjiang sourcing statements. Local industry experts point out that Nike has lagged in local innovation, agility, and hyper-targeted marketing compared to agile domestic rivals and key international competitors like Adidas and Lululemon. In response, Cathy Sparks, Nike's newly appointed Vice President and General Manager of Greater China, announced a strategic overhaul that includes appointing the company's first VP of local product creation to design China-specific lifestyle and performance lines, as well as unwinding a fragmented digital distribution model by shutting down unauthorized distributor online stores to restore full-price brand value and consumer relevance across the region.

3. Procter & Gamble reported mixed fiscal fourth-quarter results, beating Wall Street's adjusted earnings expectations with $1.43 USD per share versus $1.41 USD expected, but missing revenue estimates at $21.2 billion USD compared to $21.38 billion USD anticipated. Flat overall volume across the portfolio left organic revenue unchanged, reflecting persistent consumer price sensitivity as shoppers substituted brand-name items for cheaper private labels or stretched product use. The beauty division led performance with a 3% volume increase—driven by brands like Pantene, Olay, and SK-II—while the healthcare segment lagged with a 3% volume decline due to falling oral care sales. Looking ahead to fiscal 2027, P&G projected modest net sales growth of 1% to 3% and core earnings per share between $6.89 USD and $7.11 USD, citing an estimated $1 billion USD post-tax headwind from elevated raw material, energy, and transportation costs. Alongside its earnings report, P&G announced that CEO Shailesh Jejurikar will assume the additional role of Board Chair effective August 1, succeeding former chief executive Jon Moeller.

   Headlines

   1. Chip stocks are down more than $1T as the AI selloff continues.

   2. Audi is launching a three row Q9 SUV in the US.