Diamonds and Dogs
6/29/12Nike Inc. (NKE)
Nike Inc. lost its traction today, slipping down 9.43% to $87.75. Thursday's earnings release left many investors feeling like their shoelace broke right before running the Boston Marathon. The company's earnings report showed that earnings per share fell from $1.23 to $1.17. The report caused Nike to lose about 9% of its market cap from Wednesday's close. Quarterly earnings also missed estimates of $1.37 per share by a great margin. Although EPS was down there was good news from the earnings report; revenue. Nike is sprinting forward with revenue gaining 16% to $24 billion annually. Good revenue was not enough to help Nike though; the stock stumbled all the way to the finish line (the close of the market).
The market did phenomenal today with all the indices up significantly. The Dow was up 277.83 points, the S&P up 33.12 points, and the Nasdaq up 85.56 points. The Dow posted its largest gain of the year. This bounce came after European leaders announced a deal to help out struggling Eurozone banks. The goal of this deal is aimed at easing the recapitalization of banks. Optimism was further fueled by the latest reading on personal income in the United States, which increased in May by 0.2%, slightly higher than expected. World markets were all up today as well. With Mexico's Bolsa up 1.8%, CAC 40 up 3.42%, FTSE 100 growing 1.04%, DAX up 2.44%, Heng Seng gaining 2.19%, and Nikkei up 1.50%. There is no argument that today was a great day in the world markets, whether we can remain on this path is another story.