Tuesday Markets Update: GM Raises Outlook, Nike Extends NBA Deal

On Monday, major indexes had mixed performances. The Dow Jones Industrial Average dropped 0.8% and the S&P 500 slipped 0.2%, while the Nasdaq Composite rose 0.3%, boosted by Nvidia hitting a new all-time high. This followed record highs for both the Dow and S&P 500 on Friday and marked the sixth straight week of gains for all three major indexes, the longest winning streak of the year.

Premarket Movers:

Nike Extends NBA and WNBA Deal

Nike (NYSE:NKE) secured a new 12-year contract as the exclusive uniform and apparel provider for both the NBA and WNBA. This renewal extends a partnership that began with the 2017-18 NBA season.

While Nike's previous deal was valued at $1 billion, the new contract is reportedly much larger, though exact figures remain undisclosed.

This deal comes at a crucial time for Nike. New CEO Elliott Hill is focusing on maintaining key partnerships and regaining market share. Nike also serves as the official uniform supplier for the NFL and MLB. Notably, Nike’s contract with the NFL expires after the 2027 season, and the league is already exploring other potential partners.

GM Lifts 2024 Outlook After Beating Earnings Estimates

General Motors (NYSE:GM) outpaced Wall Street’s expectations for the third quarter, reporting adjusted earnings of $2.96 per share—well above the predicted $2.43 per share, according to an LSEG survey. GM’s revenue came in at $48.76 billion, beating the $44.59 billion consensus.

Despite rising labor and warranty costs, and struggles in China, GM's strong pricing helped push these results. The automaker also raised its full-year adjusted earnings before interest and taxes (EBIT) guidance to $14 billion to $15 billion, or $10 to $10.50 per share. This is an increase from its prior range of $13 billion to $15 billion.

For investors, GM’s raised guidance marks the third time in 2024 that the company has updated its targets, showing confidence in future performance.