US Stock Market Closed Up, Nike Shares Broke $90, A Record High

On April 18th, the US stock market closed up, and the three major indexes were at a near historical high level. Dow was less than 1% of its historical record.

Driven by the market, the price of Nike, a sports brand, hit a record high of $90 for the first time.

At the close, the company's stock price was $89.20, and its total market capitalization is about $140 billion 200 million.

Since January 2019, Nike's share price has risen by more than 20%.

In April 14th, US broker Cowen has raised Nike's target price from $90 to $100.

On the same day, the US stocks, which also created a record high share price, include Microsoft and McDonald's.

Due to Easter holidays, the US stock market closed all day in April 19th and opened normally in April 21st.

Despite the sharp rise in the US stock market, the sporting goods market on the same day was divided and the US sports brand Cage's stock price collapsed.

In April 18th, Skech (SKECHERS) announced its first quarter 2019 fiscal year report, with sales rising 2.1% to 1 billion 280 million US dollars, a record new quarter.

However, as the performance index was lower than analysts' expectations, Cage shares fell 13% on the same day, closing down 10.43%.

The overall upsurge in the US stock market is mainly driven by multiple economic data.

The latest figures show that retail sales in the US, including sporting goods market, grew by 1.6% in March, exceeding 1.1% of economists' average expectations, and the growth rate hit a new high in the past year and a half.

This means that the US economy has stabilized since the beginning of the year.

In addition, the Labor Department announced that the number of initial jobless claims decreased by 5000 to 192 thousand in April 13th.

So far, the number of initial jobless claims in the United States has been below the 200 thousand level for the two consecutive week, the lowest level in 50 years, indicating that the US economic growth base is stable.

Nike's share price rose to its highest level in March 4th, and it soared to $87.99.

Wall Street analysts attributed the share price rise to the outstanding performance of Foot Locker.

Up to 70% of the sales of this sports shoe retailer comes from Nike products.

In addition, in April 15th, its golf star Tiger Woods won the eighty-third masters of the United States. After 11 years, he won the Grand Slam title again, causing sustained concern throughout the United States, to a certain extent, to boost Nike's stock price.

In the case of tiger Woods's deep fall in sex scandals, drunk driving and a sharp decline in his record, Nike has never abandoned the support of the golfer. The cooperation between the two sides lasted for 23 years.

Now, after the master's heavy green jacket, Woods's recovery made Nike the winner. According to Apex Marketing, a market research firm, Woods's bid in Augusta created a business value of $22 million 540 thousand for Nike. On the day of winning the championship, Woods's series of costumes on Nike's official website were sold out.

This good news is reflected in Nike's share price trend. The day after winning the championship, Nike's largest intraday gain rose to 1.2%, the highest share price in a month, basically smoothing the decline after the company's quarterly earnings report.

In March 22nd, Nike group released the 2019 quarter fiscal year third quarter earnings report, as of February 28th, three months, revenue grew 7% to 9 billion 610 million U.S. dollars, which is basically consistent with analysts' expectations, which is Nike's first 6 quarters of revenue for the first time did not exceed expectations.

Net profit for the period was $1 billion 100 million, or 68 cents per share, up 3 cents from analysts' expectations.

Affected by the US tax reform, Nike lost $921 million in the same period last year.

As Nike's largest market, sales in North America increased 7% to $3 billion 810 million in the third quarter.