Tuesday, June 28, 2011
Stock Market: What Nike Wants To Tell Us
The proof comes from Nike. Yesterday they reported strong numbers, quoting higher demand for their goods in markets from the U.S. to China. Their earnings jumped 14% in the last quarter, and their revenue climbed also 14%. The producer of athletic shoes and other up market sporting accessories also sees a bright near future. Their orders for further sales jumped 15%.
These numbers show that consumers worldwide are still in spending mode. Therefore the consumer expenses, the motor of the whole economy, are still growing rapidly, feeding the global upswing.
The Nike number confirm also the strong signal that FedEx already delivered last week.
http://drivebycuriosity.blogspot.com/2011/06/stock-market-signal-of-fedex.htmlBoth bellwethers are seismographs of the world economy. They are growing fast, a sign that the upswing of the world economy continues.
The Nike & FedEx numbers are a good omen for the earnings season (companies reporting numbers for the second quarter) which starts in around 2 weeks. Maybe this is the real reason for the stock market rally we see today.