Markets were heading lower after the final reading for June’s consumer sentiment data came in showing a gain. The Thomson Reuters/University of Michigan’s reading for June showed an increase to 82.5 from May’s 81.9. This surpassed analysts’ expectations of 82. The barometer of current economic conditions crept up from May’s 94.5 to 96.6 in June. This was above expectations of 96.0. There was, however, a drop in one section of the report. The gauge of consumer expectations fell from 73.7 to 73.5. The survey’s director, Richard Curtin, said, “Consumers believe the first decline in economic activity was due to the hard winter weather, and that the economy has already returned to positive economic growth.”
Shares of Nike, Inc. (NKE) were on the rise after the company reported a giant leap during their fourth-quarter. The company reported $698 million in profits and $7.43 billion in revenue. Both of these numbers beat out analysts’ expectations. There was a large increase in their soccer revenue of 21% to a grand total of $2.3 billion for the year. Nike has been getting massive global exposure at the World Cup. Nike has been dressing 10 teams during the World Cup, including the U.S. team. They also have more athletes wearing their shoes during the games than all other shoe brands combined. Revenue from shoe sales was up 7% during the quarter. Nike Brand President, Trevor Edwards, said, “Nike is the number one brand in each of the top 10 cities in Western Europe.” Brian Yarbrough, an analyst with Edward Jones, said that Nike has been, “putting a lot of trend-right products into the marketplace, so there’s very high demand.
Shares of General Motors (GM) were falling slightly after news was released that a lawsuit lead to the recall of nearly 33,000 Chevrolet Cruzes. A Georgia woman was left blind in one eye after an accident with a potentially faulty air bag. The lawsuit was filed by Brandi Owens against GM and Takata, the makers of the airbag, and claimed the front air bags were “defective and unreasonably dangerous.” This has been an issue, which has followed Takata for several years. There have been nearly 10.5 million cars recalled worldwide with Takata air bags. GM said they learned of the lawsuit on May 1 and inspected the vehicle four days later.
That’s all for today,
Warren Gates, Normandy Research