Pre-Market Primer: Nike, Inc. Struggles in China; Stocks Rise Before Consumer Sentiment Report

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Stocks are higher today ahead of a key report on consumer sentiment.

The final reading of the Reuters/University of Michigan Consumer Sentiment index for June is due out later this morning. Economists predict that it will show a slight improvement over the preliminary reading. They expect it to hit 83, down slightly from May's 84.5

The major stock indices are poised for a fourth straight day of gains. Dow (INDEXDJX:.DJI) futures were up 0.23% at 14,971 this morning. Futures contracts on the S&P 500 (INDEXSP:.INX) gained 0.30% to 1,611.50. Nasdaq (INDEXNASDAQ:.IXIC) futures climbed 0.26% to 2,907.00.

Safe-haven assets had another poor day today. Gold prices continued to fall overnight. Spot gold broke through the $1,200/ounce milestone, but recovered a bit. This morning, the yellow metal traded down 0.74% at $1,202.60. Treasuries also sold off with the 10-year yield rising 13 basis points to 2.46%.

Asian markets ended the day higher. The consistently volatile Nikkei 225 (INDEXNIKKEI:.NI225) rallied 3.5% after a huge economic data dump. Consumer prices rose only 0.1% monthly in May. On a yearly basis, deflation slowed to 0.3% from 0.7% in April as the government tries to stimulate the economy. Household spending was down 1.6% though, and the unemployment rate ticked up 0.1% to 4.1%. Industrial production rose 2% in May after April's 1.7% rise, but fell 1% from a year ago. Retail sales rose 0.8%, following a slight decline in April.

European shares mostly fell while leaders discussed cutting some of the region's red tape. France's debt to GDP ratio reached an all-time high of 91.7%, up from 90.2%. This is expected to reach 94% by next year. Today, President Francois Hollande said that the recession and lower tax revenue mean that France will probably miss their deficit target of 3.7%. Retail sales in Germany also recovered in May, rising 0.8% after falling 0.4% in April.

At the European Union Summit, Latvia was cleared for entry to the eurozone currency union and Croatia became a member of the EU.

Research In Motion Ltd ( BBRY ) shares plunged 18.9% in the pre-market after reporting disappointing first-quarter earnings. The smartphone maker shipped 6.8 million handsets in the quarter and generated $3.1 billion in revenue, a 15% rise from the previous quarter. But it lost $84 million or $0.13 per share, missing estimates. The company didn't specify how many new BlackBerry 10 devices it sold.

Nike, Inc. ( NKE ) shares fell 1.3% despite reporting a 22% rise in profitability. The sports apparel company beat expectations with $0.76 in earnings per share. Sales in North America rose 12%, but the company was forced to resort to discounts in China, where sales were flat.

Pfizer Inc. ( PFE ) shares advanced 1.14% in the pre-market after the company announced that it will buy back $10 billion in stock.

Twitter: @vincent_trivett

Disclosure: Minyanville Studios, a division of Minyanville Media, has a business relationship with BlackBerry.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks , Technology

Referenced Stocks: BBRY , NKE , PFE

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