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Leigh Baldwin & Co.

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Diamonds and Dogs

6/29/12

Nike 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

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.
Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.