Nike Rallying Off of Lows
Nike (NYSE: NKE) reported disappointing earnings on Thursday after the closing bell, causing the stock to gap significantly lower at Friday's open. Shares opened the session at $87.84, and continued to plunge in the early going. The stock bottomed out just above $85.00, however, in the first 20 minutes of trading and have been rallying higher ever since.
At last check, NKE was down 7.55% to $89.54 and had established a strong intra-day uptrend. For its fiscal fourth-quarter, the company reported EPS of $1.17 versus analysts' estimates of $1.37. Revenues were $6.47 billion compared to analysts' estimates of $6.51 billion.
Investors are concerned about Nike's commentary surrounding China where it said that growth is expected to moderate. The company also said that it has too much inventory in the region. Future orders from China were only up 2% versus a 20% gain in the previous period.
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