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.
Full Episode
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.
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.
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.
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.
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.
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.
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