Commenting on Nike’s Q2 2020 and its booming online sales, and today’s trading Gorilla Trades strategist Ken Berman wrote in a note to investors:
Nike's Booming Online Sales
The major indices are all trading lower at midday following a mixed start to the session, as selling resumed in the largest tech names following a two-day bounce in the sector. Bulls are eyeing the large-cap benchmarks’ 50-day moving averages again, which turned into technical resistance after acting as support last week. Nike’s (NKE, +9.2%) much better-than-expected quarterly earnings gave a lift to the consumer discretionary sector, with the firm’s booming online sales booming its bottom line. The most COVID-sensitive issues were helped by the President's stance against a second round of lockdowns amid the resurgence of the virus in Europe which led to stricter containment measures and travel restrictions.
This Tiger Cub Giant Is Betting On Banks And Tech Stocks In The Recovery
The first two months of the third quarter were the best months for D1 Capital Partners' public portfolio since inception, that's according to a copy of the firm's August update, which ValueWalk has been able to review. Q2 2020 hedge fund letters, conferences and more According to the update, D1's public portfolio returned 20.1% gross Read More
As for the economy, the Markit manufacturing and services PMIs both beat expectations, coming in well above the key 50 level, and especially the manufacturing recovery seems to be gaining speed. The European PMIs were in focus in pre-market trading and while the manufacturing measures remained strong, the services sector sent outright recessionary signals putting renewed pressures on global risk assets and the euro, in particular. The dollar hit another two-month high compared to the euro and several other “risk-on” currencies, as Treasury yields ticked higher across the curve.
Dow: 27,270, - 18 or 0.1%
S&P 500: 3,304 - 10 or 0.3%
Nasdaq: 10,890, - 74 or 0.7%
Russell 2000: 1,496, - 1 or 0.1%
Market breadth has been relatively strong this morning, with decliners outnumbering advancing issues by only a 5-to-4 ratio on the NYSE at midday. 30 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 33 stocks hit new 52-week highs. The major indices have been trading below daily VWAPs (Volume-Weighted Average Price) for most of the morning session, pointing to intraday selling pressure. Besides industrials, financials have been benefiting from the bullish domestic economic releases in early trading, but most of the key sectors ar