Nike, Inc. (NKE) reported its fiscal 2026 second quarter results on Thursday, December 18. Despite the company reporting better-than-expected earnings, shares fell more than 10% following release of the report.

Nike posted its second quarter net revenue of $12.43 billion. This is up 1% from $12.35 billion reported in the same quarter last year and surpassed the $12.22 billion in revenue that analysts expected.

"We are making progress in the areas we prioritized first and remain confident in the actions we are taking to drive the long-term growth and profitability of our brands," said Nike CEO, Elliott Hill. "Fiscal 26 continues to be a year of taking action through Win Now, including realigning our teams, strengthening partner relationships, rebalancing our portfolio, and winning on the ground. We are finding our rhythm in our new sport offense, and setting ourselves up for the next phase of athlete-centered innovation in an elevated and integrated marketplace."

The company reported net income of $792 million or $0.53 per adjusted share for the quarter. This was down from net income of $1.16 billion or $0.78 per adjusted share reported last year.

Nike Brand revenue was $12.1 billion during the quarter, up 1% from this time last year. Nike Direct segment sales reached $4.6 billion, down 8% for the quarter. Nike Brand Digital sales were down 14%. Nike’s inventories were $7.7 billion in the quarter, a decrease of 3% compared to a year ago. Wholesale revenues were up 8% to $7.5 billion.

Nike, Inc. (NKE) shares ended the week at $60.93, up 3% for the week.

FedEx Delivers Earnings

FedEx Corp. (FDX) released its second quarter earnings report on Thursday, December 18. The company’s stock remained relatively unchanged despite reporting stronger-than-expected revenue and earnings.

Revenue came in at $23.47 billion for the quarter, up 7% from $21.97 billion at this time last year. This was higher than analysts’ expected quarterly revenue of $22.8 billion.

“FedEx delivered an outstanding second quarter as we successfully executed our growth strategy and advanced our network transformation, while navigating a highly challenging external environment,” said FedEx CEO, Raj Subramaniam. “I am extremely proud of our team members worldwide for their commitment to make every FedEx experience outstanding this Peak season.”

The company posted net income of $956 million or $4.04 per adjusted share for the quarter. This was up from $741 million or $3.03 per adjusted share one year ago.

FedEx reported that its planned spin-off of FedEx Freight into a separate publicly traded company will be completed by June 1, 2026. Operating income increased 31% during the quarter to $1.38 billion from a year ago. For fiscal 2026, FedEx expects sales to increase between 5% to 6% and adjusted earnings per share of $17.80 and $19.00. This compares to previous estimates of revenue growth between 4% to 6% and adjusted earnings per share of $17.20 and $19.00.

FedEx Corp. (FDX) shares ended the week at $296.33, up 3% for the week.

Paychex Releases Earnings Report

Paychex, Inc. (PAYX) released its second quarter earnings on Friday, December 19. The payroll service provider’s shares fell by approximately 3% following the release of the report.

For the quarter, the company reported total revenue of $1.56 billion. This was up 18% from $1.32 billion in the same quarter last year and narrowly missed analysts' expectations of $1.57 billion.

“We delivered solid second quarter results, with revenue increasing 18% and adjusted operating income growing 21% year-over-year,” said Paychex CEO, John Gibson. “We are proud of the significant progress we have made on key strategic priorities, enabling us to deliver the most comprehensive suite of HCM solutions in the industry. Disciplined cost management and productivity improvements, driven in part by our expanding AI capabilities, are enabling us to operate more efficiently while delivering enhanced value to clients.”

Paychex posted net income of $395.4 million or $1.10 per adjusted share for the quarter. This was down from net income of $413.4 million or $1.14 per adjusted share this time last year.

The Rochester, New York-based company saw an increase in revenue across its service segments. Professional Employer Organization (PEO) and Insurance Solutions revenue increased 6% to $336.9 million for the quarter. Management Solutions revenue rose 21% to $1.2 billion for the second quarter. The company’s total expenses reached $985.7 million, a 27% increase from $778.8 million year-over-year, primarily due to increased technology spending and costs related to the acquisition of Paycor. The company improved its outlook for fiscal 2026 and now expects adjusted diluted earnings per share to increase between 10% to 11%.

Paychex, Inc. (PAYX) shares closed at $114.19, up 1% for the week.

The Dow started the holiday week of 12/22 at 48,812 and closed at 48,711 on 12/26. The S&P 500 started the week at 6,865 and closed at 6,930. The NASDAQ started the week at 23,451 and closed at 23.593.

U.S. Treasury yields rose earlier in the holiday-shortened week as investors reacted to the latest economic data. Towards the end of the week, yields moved lower after jobless claims fell more than expected.

On Tuesday, the U.S. Commerce Department’s Bureau of Economic Analysis (BEA) announced that the revised estimate for Gross Domestic Product (GDP), a monetary measure of the market value of all goods and services produced in a specific period, increased at a 4.3% annualized rate in the third quarter of 2025. This surpassed economists’ expectations of a 3.2% annualized gain and was higher than the 3.8% increase reported in the second quarter of 2025.

“The economy maintains considerable momentum,” wrote chief North American economist at Capital Economics, Paul Ashworth. “That said, the shutdown could trigger a slowdown in the fourth quarter to nearer 2% annualised.”

The benchmark 10-year Treasury note yield opened the week of December 22 at 4.14% and traded as high as 4.21% on Tuesday. The 30-year Treasury bond opened the week at 4.82% and traded as high as 4.87% on Tuesday.

On Wednesday, the U.S. Department of Labor reported that initial claims for unemployment decreased by 10,000 to 214,000 for the week ending December 20. This was less than the 224,000 claims that analysts anticipated. Continuing claims increased by 38,000 to 1.92 million.

"Continued claims remain at a level consistent with a slow pace of hiring but are not sending a signal that hiring conditions have gotten worse," said lead U.S. economist at Oxford Economics, Nancy Vanden Houten.

The 10-year Treasury note yield finished the week of 12/22 at 4.14%, while the 30-year Treasury note yield finished the week at 4.83%.

Freddie Mac released its latest Primary Mortgage Market Survey on Wednesday, December 24. The survey showed the 30-year mortgage rate decreasing slightly compared to the previous week.

This week, the 30-year fixed rate mortgage averaged 6.18%, down from last week’s average of 6.21%. Last year at this time, the 30-year fixed rate mortgage averaged 6.85%.

The 15-year fixed rate mortgage averaged 5.50% this week, up from last week’s 5.47%. During the same week last year, the 15-year fixed rate mortgage averaged 6.00%.

“The average 30-year fixed-rate mortgage decreased further this week,” said Freddie Mac’s Chief Economist, Sam Khater. “Declining rates offer a timely and welcome gift for aspiring homebuyers.”

Based on published national averages, the savings rate was 0.39% as of 12/15. The one-year CD averaged 1.63%.

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