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Record Closing Highs, Infrastructure Deal & FDX, NKE Report

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New record closes for the Nasdaq and S&P 500 Thursday sets us up for easily the best-performing week of June so far. The Nasdaq rides a 4-day winning streak, while the S&P has notched its 30th record close of 2021 — and we’re barely more than half-way through the year. The Dow gained 322 points, +0.95%, while the S&P came in +0.58%, the Nasdaq +0.69% and the small-cap Russell 2000 once again taking the cake, +1.31%.

A bipartisan (!) infrastructure bill on Capitol Hill was announced today by President Biden, surrounded by some of his former cohorts in the U.S. Senate at the White House. The $579 billion package includes $312 billion for Transportation — including airports, roads & bridges and Amtrak rail — and $266 billion labeled “Other.” This will include, among other things, replacing 100% of lead water pipes in the U.S., which are found almost exclusively in low-income neighborhoods.

The “pay-fors” on this bill are sketched out as: a reduced tax gap, unemployment insurance integrity, repurposed Covid funds and good-ol’ economic growth. Democrats on the Hill also expect a separate reconciliation bill (whereby their slim majority can pass without threat of filibuster) where other assistance they consider “infrastructure,” such as electric vehicle subsidies and child care sourcing, will have a chance to pass.

FedEx (FDX - Free Report) posted mixed results in its fiscal Q4 earnings report after today’s close: $5.01 per share nearly doubled the year-ago print of $2.53, but missed the Zacks consensus by 3 cents. Revenues of $22.6 billion surpassed estimates for $21.7 billion in the quarter. Next quarter revenue guidance was bumped up slightly, but it was not enough to keep the stock from falling 4% on the news in late trading.

Nike (NKE - Free Report) , on the other hand, swooped well past estimates on moth top and bottom lines this afternoon: 93 cents per share clobbered the 57 cents in the Zacks consensus, and $12.3 billion in sales grew 96% year over year, and topped the $11.1 billion expected. Of course, much of this success is due to extremely easy year-over-year comps, though Nike also put up strong numbers elsewhere.

For instance, in greater China — which was supposed to be a weak spot for the shoes and apparel giant for its fiscal Q4 — grew 17% year over year, while North America zoomed up 141%. The company’s digital sales segment have provided Nike with excellent gross margins: +8.5% to 45.8%. Shares, as a result, are up 4% in the after-market. That said, the stock is still down year-to-date by another 4%.

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