Diamonds and Dogs
Nike (NKE) up 3% on an upgrade. UBS upgraded the sportswear giant from Neutral to Buy and raised its price target to $136 from $103. UBS said that changes in the swoosh brand's business model will drive better-than-expected growth. Nike has a new "triple double strategy," which aims to double its speed to market, direct connections with consumers, and pacing of new platforms. Digital, digital, digital. Nike sold out of most of their Kobe products last week. The Observer news reported that by Tuesday last week there were 65,147 pieces of Bryant memorabilia listed on eBay up from 14,000 on Sunday including an autographed 1996 Topps Chrome Kobe Bryant rookie card for $1 million.
Energy a dog once again. Exxon Mobil (XOM) is down 2% to a 52-week low and a 10-year low on a downgrade from Goldman Sachs. The analyst downgraded the stock to a sell and a $59 price target citing concerns that the oil giant is on track to come up well short of its target for investment returns. It doesn't help that the price of oil is down 16% to start the year at a more than one year low. Good news for consumers.