On Friday, little changed for Wall Street, with over a 4 percent drop in Nike’s shares offsetting the gains from the staple consumer stocks.
On Thursday, Nike had predicted low current-quarter revenue growth, reinforcing the hard time the company is having to take back its market share from Adidas in North America. The stock brought down the S&P consumer discretionary index, which also showed the highest loss, a 0.34 percent decline, among the eleven major S&P sectors.
The staples index had help from the 0.7 percent rise in Procter & Gamble as well as the 0.4 percent gain in Philip Morris.
All major Wall Street indexes were on the course to close the week with gains, maintained by the U.S. tax bill. Investors were also thankful that the U.S. Congress avoided a government shutdown this week only a day before federal funding would expire.
“We’re in a bullish phase and investors have things to feel good about – a strong economy as witnessed by a 3.2 percent growth in GDP, a tax plan that is all but signed,” said Andres Bakhos, managing director at an investment firm. “The tax plan will add more credibility to the Republican government and will be used as a leverage to get more things done.”
Low volume is anticipated on Friday, prior to the Christmas holiday on Monday.
THE HERALD FINANCE REPORT
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At 9:36 a.m. ET:
The Dow Jones Industrial Average was down 13.57 points, 0.05 percent, at 24,768.72.
The S&P 500 was down 0.33 points, 0.01 percent, at 2,684.24.
The Nasdaq Composite was down 10.72 points, 0.15 percent, at 6,954.64.
Friday’s data revealed that U.S. consumer spending increased in November and shipments of key capital goods orders gained for the 10th month in a row, the most recent indications of strong momentum in the economy.