Declining crude oil prices and increased stability in the exchange rate of the Euro to the U.S. dollar gave stocks a boost today. The Dow Jones Industrial Average finished the day up 1.29 percent to 17,977.43 while the S&P 500 rose 1.35 percent to close at 2,081.19.
The WWD Global Stock Tracker clocked a 1.46 percent gain to end the day at 115.51. One of the top gainers in the tracker was Safilo Group SpA, which rose 7.3 percent after announcing a new strategic plan.
The dollar was weak on market perceptions that the Federal Reserve might hold off raising interest rates due to fragile economic conditions while crude oil dipped to a new 52-week low in midday trading — finishing the day down 2.3 percent to a six-year low.
Nike Inc. had an interesting day as its shares experienced heavy trading volume following a cut in its share price target from $102 to $99 from Credit Susse. The equity research firm maintained an “outperform” rating on the stock. Separately, BB&T Capital Markets analyst Corinna L. Freedman lowered third-quarter, fourth-quarter and full-year earnings per share estimates on Nike. “We are lowering our [third quarter] estimate to reflect continued strength in the dollar and we anticipate further pressure on [fiscal year 2015 earnings per share] guidance,” Freedman said in the report and added that Nike’s “underlying fundamental trends remain positive.” Shares of Nike resisted the target price cut and revised earnings estimates and finished the day with up 0.66 percent to $96.44.
Freedman also said apparel sales for Nike are expected to strengthen gross margins. In other retail apparel news, Dana Telsey, chief executive officer of Telsey Advisory Group, said in her morning report that there has been ongoing strength in accessories and activewear, but no clear “product trend in apparel.” That is changing, though.
“In our store walks, viewing of fashion shows, and reading magazines and online blogs, the emergence of a distinctive apparel offering appears to be developing, including bohemian; 70s styles with patchwork, floral, and geometric patterns; and hippie chic along with southwest fringe,” Telsey said. “Each of these styles may require different shoes. While these new apparel trends are still in the very early stages, we are not hearing of any slowdown in active and accessories purchases in favor of apparel spend. The combination of rising apparel sales and continued increases in active and accessories is encouraging.”