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Stocks Slip Lower, Evergrande Skips Payment, China Bans Crypto Trading - 5 Things You Must Know

Stock futures dip as Evergrande triggers caution, Evergrande misses dollar bond debt payment; Nike warns on supply chain delays; Costco to limit key item purchases; China bans all cryptocurrency trading.

Here are five things you must know for Friday, September 24:

1. -- Stock Futures Slip Lower As Evergrande Debt Deadline Passes

U.S. equity futures slipped lower Friday, but look set to close out the week in positive territory, as investors debate the impact of a China Evergrande default against improving second-half growth prospects in the world's biggest economy.

China Evergrande, the indebted property developer at the heart of systemic risk concerns in Asia, missed an $83.5 million dollar-bond debt payment Thursday and entered a 30-day grace period that it must use to meet obligations for foreign creditors. 

The impact was muted in overnight trading, however, as China's central bank injected millions more cash into its financial system and markets rode Walls Street's solid Thursday rally sparked by a dovish Fed and its bullish assessment on U.S. growth. 

Still, European stocks drifted lower as the impact of Nike's  (NKE) - Get NIKE, Inc. Class B Report caution on supply chain disruptions, and a key survey of business conditions in Germany warned of a "bottleneck recession" in the region's biggest economy. 

On Wall Street, futures contracts tied to the Dow Jones Industrial Average are indicating a 110 point opening bell dip, while those linked to the S&P 500 are priced for a 20 point move to the downside.

Nasdaq Composite futures are set for a 90 point retreat as benchmark 10-year note yields rise to a multi-month high of 1.442% following yesterday's Treasury market sell-off.

2. -- Evergrande Misess Bond Payment Deadline, Enters Grace Period

China Evergrande missed an $83.5 million debt payment on a dollar bond Thursday, forcing the indebted property developer into a 30-day grace period to meet its obligations for foreign creditors.

China's central bank, the PBOC, added another $18.5 billion in liquidity support Friday in what could be an effort to shore-up the country's banking system amid reports that local authorities have been warned to prepare for a potential collapse of the world's most indebted property company.

"The main problem for Evergrande currently is that it does not have enough money to complete the construction of existing residential property projects," said ING economist Iris Pang. "That means it cannot sell these properties and so cannot get cash to repay its debts."

With overall debts in the region of $305 million, payments totaling $850 million due before the end of the and total assets worth around 2.2% of China's nominal GDP, the Evergande saga can't be ignored by global investors.  

3. -- Nike Beats On Profits, Cautions on Supply Chain Hit

Nike NKE shares slumped lower in pre-market trading Friday after the world's biggest sports apparel company warned that supply chain disruptions, in Asia and elsewhere, would likely impact its holiday sales forecasts.

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Nike, in fact, cut its 2022 revenue forecast to a "mid-single digit" growth rate, from a previous estimate of double-digit gains, owing to supply chain issues  after a mixed first quarter earnings report that beat on profits but missed on sales.

"Consumer demand for Nike remains at an all time high and we are confident that our deep consumer connections and brand momentum will continue," CFO Matthew Friend told investors on a conference call late Thursday. "However, we are not immune to the global supply chain headwinds that are challenging the manufacturer and movement of product around the world."

Nike shares were marked 4.75% lower in pre-market trading Friday to indicate an opening bell price of $152.00 each.

4. -- Costco Tops Earnings Forecasts, Limits Key Item Purchases

Costco Wholesale  (COST) - Get Costco Wholesale Corporation Report shares edged higher in pre-market trading after the big box retailer topped Wall Street forecasts for its fourth quarter earnings but noted it would begin limiting purchases of certain items owing to supply chain issues.

Costco's August quarter sales were up 17% from last year at $62.68 billion, while comparable sales rose by a better-than-expected 9.4%, paced by increases in Canada and the United States. The group earned $3.76 per share for the period, up 23.7% from last year and well ahead of the Street consensus forecast.

[Suppliers] have got plenty of merchandise, but there's two- or three-week delays on getting it delivered because there's a limit on short-term changes to trucking and delivery needs," said CFO Richard Galanti. "So planning is crucial ... we're putting some limitations on key items, like bath tissues, roll towels, Kirkland Signature water, high-demand cleaning-related SKUs related to the uptick in Delta-related demand."

Costco shares were marked 0.8% higher in pre-market trading Friday to indicate an opening bell price of $456.30 each.

5. -- PBOC Plans Major Cryptocurrency Crackdown

 The People's Bank of China issued a blanket ban on all crypto currency trading Friday, declaring all forms of digital transactions and financing as 'illegal activities that are strictly prohibited".

The statement, the latest in several attempts to reign in the growth of cryptocurrency and digital coin trading in the world's second-largest economy, also banned overseas exchanges from providing services to mainland investors in China via Internet.

"The notice clearly stated that virtual currency exchange, virtual currency trading as a central counterparty, provision of matching services for virtual currency transactions, token issuance financing, and virtual currency derivative transactions are all illegal financial activities and are strictly prohibited," the PBOC said in its statement. Transactions are "resolutely banned in accordance with the law". 

Worried About Bitcoin Volatility? 'Invest With Caution'

Bitcoin prices slipped modestly lower in the wake of the PBOC statement, and were last seen changing hands at $42,548.80 each.