Here are Three Hot Things to Know About Stocks
- The Dow Jones Industrial Average
rose on Friday but made the most gains as bank stocks faltered.
- JPMorgan Chase & Co. (JPM) ended lower, while Citigroup Inc. (C) won after the Federal Reserve raised no objection to banks' proposed capital allocation plans.
- Nike Inc. (NKE) jumped 11.4% after its earnings and sales exceeded analysts' forecasts.
Wall Street Overview
Stocks rallied on Friday, June 29, but gave up much of their gains in late trading as bank stocks fell. Financials had risen earlier after most of the Federal Reserve-supervised lenders passed the second phase of stress tests that allowed them to raise dividends and share repurchases.
The Dow Jones Industrial Average
The Deutsche Bank AG (DB) share actually rose 2% on Friday after receiving a new "critical flaw" in its financial planning from the Federal Reserve, while Goldman Sachs Group Inc. (GS) and Morgan Stanley (The US Federal Reserve noted "widespread and critical deficits" on Thursday, June 28, in the capital planning practices of DB USA, the US subsidiary of Deutsche Bank, as a result of which DB USA will at least until next year failed to pay regular dividends to the German parent company, a senior Federal Reserve official told reporters.
Goldman Sachs and Morgan Stanley failed in an annual "stress test" that required them to pay adequate rewards even after a severe recession and market downturn The two companies were forbidden from making their planned distributions to shareholders via the Ni year-on-year increase.
The Fed had no objection to more than 30 other capital allocation proposals from major banks, including JPMorgan Chase & Co. (JPM), Bank of America Corp. (BAC), Citigroup Inc. (C) and Wells Fargo & Co. (WFC).
Goldman Sachs, JPMorgan and Citigroup are on Jim Cramer's Action Alerts PLUS member club. Would you like to be warned before Jim Cramer buys or sells GS, JPM or C? Learn more now.
Nike Inc. (NKE) rose 11.4% on Friday after the sneaker and sportswear company posted gains and sales in the fourth quarter that outperformed analysts' forecasts.
Nike said that a new focus on direct-to-consumer sales, fueled by a revised online strategy and a partnership with Amazon.com Inc. (AMZN), has contributed to North American sales over the three months of more than 2.7%. This helped to increase total revenue by 12.8% to $ 9.79 billion, earning $ 1.14 billion, or 69 cents per share. This exceeded analyst forecasts by 5 cents.
Based in Eugene, Oregon, Eugene, Oregon expects high-single-digit revenue growth for fiscal year 2019 and a predicted margin expansion of at least 50 basis points.
Amazon is a stake in Jim Cramer's Action Alerts PLUS member club. Would you like to be warned before Jim Cramer buys or sells the stock? Learn more now.
Constellation Brands Inc. (STZ) fell 5% after first-quarter adjusted earnings were $ 2.20 per share, below analyst forecasts of $ 2.44. The wine and beer company expects to earn $ 9.40 to $ 9.73 per share for the 2019 fiscal year. Analysts Expected $ 9.73
Constellation Brands is a stake in Jim Cramer's Action Alerts PLUS member club. Would you like to be warned before Jim Cramer buys or sells the stock? Learn more.
KB Home (KBH) gained 7.2% after house-builders reported profits and sales in the second quarter outperforming Wall Street forecasts. KB Home delivered 2,717 units in the second quarter, exceeding expectations for 2,588.
Novartis AG (NVS) announced on Friday that it will outsource its eye care unit Alcon, after being reviewed in 2017 rose 3.5%.