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Nike (NKE) Beats on Top Line, Pending Home Sales Lower
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It was a strong day in the markets for the most part — the Nasdaq was flat, but the other indices have a ways to go to catch up — while the Dow grew +269 points, +0.80%, while the S&P 500 gained +0.45% and the Russell 2000 reigned supreme again today, +1.22%. The small-cap index is the clear winner over the last week and last month of trading. The S&P and Nasdaq look forward to their fourth-straight up-month, while the Dow, +4% for June, is experiencing its strongest month since November 2022.
Earlier today, May Pending Home Sales came in surprisingly lower: -2.7% versus a downwardly revised -0.4% the previous month. This marks the ninth month in the past year pending home sales have come in with a negative headline. Year over year, -22.2% marks the 24th straight month with a negative number. Recall prior to March ’22, when prospective home buyers understood mortgage rate hikes were forthcoming. This pulled demand to earlier months, though as we can see from the year-over-year numbers, we haven’t yet found easy comps.
Compare this report to Monday’s New Home Sales figures, which shot up more than 80K sales from the previous month. Aside from housing demand, which we can clearly see in these numbers, homebuilders are now being more accommodative; existing homeowners have been reluctant to sell and continue to be, based on new mortgage rates as much as double what they’re currently paying for their home.
Nike Inc. (NKE - Free Report) reported fiscal Q4 earnings after today’s closing bell: results were mixed, with the first earnings miss in recent memory, albeit by a penny — 66 cents per share were reported from the 67-cent Zacks consensus, which had already been guided lower during the course of the quarter. Revenues came out ahead: $12.83 billion outperformed the $12.59 billion projected. While inventories are rolling off, still slowly, while business in both China and North America was better than expected.
Shares are still notably off early May highs (prior to lower quarterly guidance provided by the front brass), but up +6.5% in the past month. The stock initially tumbled on this afternoon’s quarterly results, but had buoyed back into positive territory momentarily before tacking back into the red. The conference call is ongoing; we look toward tomorrow morning’s pre-market for a new valuation equilibrium going forward.
The big PCE Index also awaits us in Friday’s early trading session, with income and spending both expected to take a step back month over month. Year over year, slight ticks down are what economists are looking for, with a core PCE expected to come in at +4.6%, back where we saw this metric two months ago. Core PCE has grown every month consecutively going back to more than a year ago.
Image: Bigstock
Nike (NKE) Beats on Top Line, Pending Home Sales Lower
It was a strong day in the markets for the most part — the Nasdaq was flat, but the other indices have a ways to go to catch up — while the Dow grew +269 points, +0.80%, while the S&P 500 gained +0.45% and the Russell 2000 reigned supreme again today, +1.22%. The small-cap index is the clear winner over the last week and last month of trading. The S&P and Nasdaq look forward to their fourth-straight up-month, while the Dow, +4% for June, is experiencing its strongest month since November 2022.
Earlier today, May Pending Home Sales came in surprisingly lower: -2.7% versus a downwardly revised -0.4% the previous month. This marks the ninth month in the past year pending home sales have come in with a negative headline. Year over year, -22.2% marks the 24th straight month with a negative number. Recall prior to March ’22, when prospective home buyers understood mortgage rate hikes were forthcoming. This pulled demand to earlier months, though as we can see from the year-over-year numbers, we haven’t yet found easy comps.
Compare this report to Monday’s New Home Sales figures, which shot up more than 80K sales from the previous month. Aside from housing demand, which we can clearly see in these numbers, homebuilders are now being more accommodative; existing homeowners have been reluctant to sell and continue to be, based on new mortgage rates as much as double what they’re currently paying for their home.
Nike Inc. (NKE - Free Report) reported fiscal Q4 earnings after today’s closing bell: results were mixed, with the first earnings miss in recent memory, albeit by a penny — 66 cents per share were reported from the 67-cent Zacks consensus, which had already been guided lower during the course of the quarter. Revenues came out ahead: $12.83 billion outperformed the $12.59 billion projected. While inventories are rolling off, still slowly, while business in both China and North America was better than expected.
Shares are still notably off early May highs (prior to lower quarterly guidance provided by the front brass), but up +6.5% in the past month. The stock initially tumbled on this afternoon’s quarterly results, but had buoyed back into positive territory momentarily before tacking back into the red. The conference call is ongoing; we look toward tomorrow morning’s pre-market for a new valuation equilibrium going forward.
The big PCE Index also awaits us in Friday’s early trading session, with income and spending both expected to take a step back month over month. Year over year, slight ticks down are what economists are looking for, with a core PCE expected to come in at +4.6%, back where we saw this metric two months ago. Core PCE has grown every month consecutively going back to more than a year ago.
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