Key Takeaways
- Fonterra (FCG.NZ) reported a total revenue of NZ$26.45 billion for FY25 and provided an FY26 EPS guidance ranging from NZ$0.45 to NZ$0.65, alongside a farmgate milk price forecast of NZ$9.00–11.00 per kgMS.
- Wall Street's S&P 500 rally has shown signs of pausing near record highs, with investors weighing risks from persistent inflation and a slowing labor market.
- Federal Reserve Governor Mary Daly indicated that further policy adjustments are likely necessary to restore price stability and fully supported last week's quarter-point rate cut.
- NYSE short interest increased by 3.3% to 19.18 billion shares in mid-September, reflecting evolving market sentiment.
Fonterra, the New Zealand dairy giant, has released its financial highlights for the 2025 fiscal year, reporting a total revenue of NZ$26.45 billion. The cooperative also provided its guidance for the upcoming fiscal year, projecting earnings per share (EPS) for FY26 to be between NZ$0.45 and NZ$0.65. Farmers can anticipate a forecast farmgate milk price for the 2025/26 season in the range of NZ$9.00 to NZ$11.00 per kgMS, with expected milk collections of 1,525 million kgMS. Fonterra also reiterated its medium-term dividend target, aiming to distribute 60–80% of earnings.
Wall Street Rally Stalls Amid Economic Headwinds
The robust rally on Wall Street is showing signs of a pause, with the S&P 500 stalling near its recent record highs. Investors are exhibiting caution as they assess ongoing risks associated with sticky inflation and a discernible slowdown in the labor market. Despite this temporary halt, underlying optimism persists, largely driven by AI-driven growth narratives and strong corporate profits. Federal Reserve Chair Jerome Powell recently commented that stock prices broadly look "fairly highly valued," adding to the cautious sentiment.
Fed Signals Further Policy Adjustments
Federal Reserve Governor Mary Daly emphasized that further policy adjustments are likely needed to restore price stability and support the labor market. Daly fully supported the Federal Open Market Committee's (FOMC) decision last week to implement a quarter-point interest rate cut, noting that the risks to the economy had shifted, making it time to act. She also clarified that projections for additional rate cuts are not promises, and each decision will require a careful tradeoff assessment, especially as the labor market has slowed and inflation has risen less than expected in certain sectors.
NYSE Short Interest Rises
In other market news, short interest on the New York Stock Exchange (NYSE) saw an increase of 3.3%, reaching 19.18 billion shares in mid-September. This rise in short interest suggests that some investors are betting against certain stocks or the broader market, indicating a nuanced sentiment amidst the recent market movements.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.