<div id="readability-page-1"> <p><img src="https://imageproxy.pbkrs.com/https://m.foolcdn.com/media/dubs/images/email-header-breakfast-news.max-800x600.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="800" height="161" original-src="https://imageproxy.pbkrs.com/https://m.foolcdn.com/media/dubs/images/email-header-breakfast-news.max-800x600.png"/></p> <h2>Breakfast News: Nike's Reset Accelerates</h2>  <h3>May 20, 2025</h3>  <div><table> <thead> <tr> <th colspan="2">Monday's Markets</th> </tr> </thead> <tbody> <tr> <td><strong>S&amp;P 500</strong><br/>5,964 <span>(+0.09%)</span></td> </tr> <tr> <td><strong>Nasdaq</strong><br/>19,215 <span>(+0.02%)</span></td> </tr> <tr> <td><strong>Dow</strong><br/>42,792 <span>(+0.32%)</span></td> </tr> <tr> <td><strong>Bitcoin</strong><br/>$105,631 <span>(+1.6%)</span></td> </tr> </tbody> </table></div>  <div><p><img src="https://imageproxy.pbkrs.com/https://braze-images.com/appboy/communication/assets/image_assets/images/682c57d0c213b700650fae38/original.png/query-MTc0NzczNjUyOA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1882" height="1064" original-src="https://imageproxy.pbkrs.com/https://braze-images.com/appboy/communication/assets/image_assets/images/682c57d0c213b700650fae38/original.png/query-MTc0NzczNjUyOA"/></p><p>Source: Image Created by Jester AI.</p> </div> <h2>1. Nike Aims for Return to Past Glories</h2> <p><strong>Nike</strong> <span>(NKE<span> -1.77%</span>)</span> is downsizing its technology division, with employee layoffs the latest sign of a push to recapture growth by going back to the roots and focusing on sports and wholesale channels.</p> <ul> <li><strong>Shifting to third-party vendors:</strong> The exact number of job cuts remains undisclosed, but via outsourcing some responsibilities, it highlights Nike's desire to optimize resources while keeping a tight control on costs.</li> <li><strong>Refining the &#34;Win Now&#34; strategy:</strong> Bulls point to the changes implemented from new CEO Elliott Hill, along with the potential for tariff concerns to be short-lived.</li> </ul> <h2>2. CATL Sets 2025 IPO Record</h2> <p><strong>Contemporary Amperex Technology</strong> (CATL) rose as much as 14% in early trading in Hong Kong, as the world's largest maker of EV batteries celebrated the largest IPO so far this year. The $7 billion raised will go toward fueling growth outside of China.</p> <ul> <li><strong>&#34;A new milestone in our mission to drive the global zero-carbon economy&#34;:</strong> Chairman Robin Zeng embraced the debut, while Johnson Wan, head of China industrials research at <strong>Jefferies</strong> <span>(JEF<span> -2.08%</span>)</span>, highlighted it's only priced at 17 times current earnings multiple.</li> <li><strong>Blacklisted by the Pentagon:</strong> Based on allegations of links to the Chinese military, the company has been under scrutiny by the U.S., with a congressional committee even asking <strong>JPMorgan</strong> <span>(JPM<span> -1.09%</span>)</span> and <strong>Bank of America</strong> <span>(BAC<span> 0.11%</span>)</span> to stop working on the public listing.</li> </ul> <h2>3. Howmet Pops As Defense Sector Outperforms</h2> <p><em>Stock Advisor</em> recommendation <strong>Howmet Aerospace</strong> <span>(HWM<span> 2.08%</span>)</span> hit a fresh record as several aerospace and defense companies posted fresh 52-week intraday highs, highlighting the positive sentiment toward the sector right now.</p> <ul> <li><strong>&#34;Spending money on the capabilities that are needed for the threats of the 21st century&#34;:</strong> U.S. Secretary of State Marco Rubio insisted late last week that NATO members invest 5% of GDP on defense over the next seven years. Such a boost would see more revenue flowing to related companies.</li> <li><strong>Momentum from a strong earnings season:</strong> <strong>Northrop Grumman</strong> <span>(NOC<span> -0.56%</span>)</span> reported a record-high order backlog of $92.8 billion, with <strong>General Dynamics</strong> <span>(GD<span> 0.17%</span>)</span> noting all business units delivered increased earnings compared to Q1 2024.</li> </ul> <h2>4. Next Up: HD, PANW Earnings Plus Fedspeak</h2> <p><strong>Home Depot</strong> <span>(HD<span> -0.37%</span>)</span> released quarterly results before the market opened, with revenue beating expectations but earnings missing. Importantly, it left the full-year sales forecast unchanged, assuming the continuation of lower tariffs between the U.S. and China.</p> <ul> <li><strong>Continued pivot toward AI-enhanced security solutions and cloud capabilities:</strong> After the closing bell, <strong>Palo Alto Networks</strong> <span>(PANW<span> 0.59%</span>)</span> will report Q2 results. Next Generation Security (NGS) offerings paid off big last quarter, with shareholders eager to see how this segment is doing.</li> <li><strong>Looking for clues on monetary policy direction:</strong> Federal Reserve members including Bostic, Daly, Hammock, Kugler, and Barkin are all down to speak today, providing a host of new insights for investors to digest in the interim period before the next FOMC meeting on June 18th.</li> </ul> <h2>5. Your Take</h2> <p>When you go home improvement shopping, do you prefer: The Home Depot; <strong>Lowe's </strong><span>(LOW<span> 0.11%</span>)</span>; Whichever is more convenient to your home; Neither? Discuss with friends and family, or become a member to hear what your fellow Fools are saying.</p>                                                                            </div>

PANW

<p>Nike is downsizing its technology division to refocus on sports and wholesale channels, with undisclosed layoffs as part of its "Win Now" strategy under new CEO Elliott Hill. Meanwhile, CATL celebrated a record $7 billion IPO, despite scrutiny from the U.S. over military links. Howmet Aerospace saw stock gains as the defense sector thrives, with calls for increased NATO spending. Home Depot reported mixed earnings, while Palo Alto Networks is set to release Q2 results. Federal Reserve members are speaking today, offering insights ahead of the next FOMC meeting.</p>

- Nike is downsizing its technology division to refocus on sports and wholesale channels, indicating a strategy shift under new CEO Elliott Hill.  
- Contemporary Amperex Technology (CATL) celebrated a record $7 billion IPO, aimed at expanding growth outside China, despite facing scrutiny from the U.S. government.  
- Howmet Aerospace reached a record high as the defense sector thrives, supported by increased spending on defense capabilities and a strong earnings season among major companies.  