Shares rose on Friday however, gave up much of their gains in late trading as the bank shares fell back. Financials had risen earlier after most of the Federal Reserve's 35-lenders passed the second phase of the stress test, which would enable them to raise dividends and share repurchases. The Dow Jones Industrial Average ended at 55 points or 0.23%, the S & P 500 at 0.08% and the Nasdaq at 0.09%.
Not all banks are equal and Deutsche Bank (DB) has figured this out the hard way week. The Fed said on Thursday, June 28, that it had "widespread and critical shortcomings" in the capital planning practices of DB USA, the US subsidiary of Deutsche Bank. As a result, DB USA will not be able to pay regular dividends to the German parent company at least until next year, an elder Federal Reserve official told reporters. Curiously, on Friday Deutsche Bank even closed 2% even though they had received a new charge of "critical flaws" from the Federal Reserve in their financial planning. A bit like a dead cat, for the traders out there, it seems.
Nikes (NKE) last quarter was a home run, a swish, a hole in one, an ace. But at Nike, it's not all a slam-dunk. TheStreet's Michelle Lodge explains why the Nike Jordan brand saw sales down 8% to $ 2.86 billion in the quarter versus $ 3.1 billion in the same period last year. "Nike has brought too much product to market and liquidation rates have slowed down, and the shoes have not been sold," said Matt Powell, vice president and senior industry adviser to the NPD Group, to Michelle. I'm not sure if Powell ever tried to buy a pair of exclusive Jordans, but given my closet, I can tell you that too much product sounds more like "too much product nobody wanted" for me. Jordan's in new and funky color ways are big, but innovation and new products – d. H. Adidas NMD hit – seems more like a long-term strategy for growth. Time will tell how Phil Knight's house will respond to Jordan's woes while the rest of the business seems to hit in the meantime.
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