Athleticwear Makers Slide After Nike’s Sales-Growth Cut

  • Consumer sentiment survey shows slight increase
  • U.S. new-home sales decline in November
  • Athleticwear makers’ shares drop after Nike’s sales-growth cut
  • Shares of Adidas, Puma, Dick’s Sporting Goods, and JD Sports Fashion also fall

Consumer companies saw a boost in their stocks following positive data on consumer sentiment. The final reading of the December consumer sentiment survey showed a slight increase to 69.7 from 69.4 earlier in the month, according to the University of Michigan. However, U.S. new-home sales experienced a decline of 12.2% in November, dropping to an annual rate of 590,000 from a revised 672,000 in the previous month, as reported by the Commerce Department. This weak housing data may help alleviate concerns about a potential inflation revival. On the other hand, shares of athleticwear makers took a hit after market leader Nike unexpectedly cut its sales-growth expectations. Nike’s shares fell by more than 10%, causing a ripple effect on other companies such as Adidas, Puma, Dick’s Sporting Goods, and JD Sports Fashion, which also saw declines in their stock prices.

Public Companies: Nike (NKE), Adidas (ADS), Puma (PUM), Dick’s Sporting Goods (DKS), JD Sports Fashion (JD)
Private Companies:
Key People:

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Factuality Level: 7
Justification: The article provides factual information about consumer sentiment, new-home sales, and the impact on consumer companies. However, it lacks specific details and context about the reasons behind the changes in consumer sentiment and new-home sales. Additionally, the article includes some repetitive information about the decline in shares of athleticwear makers.

Noise Level: 3
Justification: The article provides relevant information on consumer sentiment and new-home sales, but it includes repetitive information about the decline in shares of athleticwear makers and their competitors. The article lacks in-depth analysis and does not provide actionable insights or solutions.

Financial Relevance: Yes
Financial Markets Impacted: Consumer companies, atheticwear makers (Nike, Adidas, Puma, Dick’s Sporting Goods, JD Sports Fashion)

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the impact of strong consumer sentiment data on consumer companies, as well as the negative impact on atheticwear makers due to a sales-growth cut by Nike. However, there is no mention of any extreme events or their impact.

Reported publicly: www.marketwatch.com