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Nike earnings — What to know in markets Thursday

Heidi Chung

Nike will take centerstage Thursday.

The shoe giant will release quarterly financial results after the market close on Thursday. Trade tensions continue to mount, and investors are eagerly awaiting President Trump and President Xi’s meeting at the G20 summit this weekend in Japan. If talks between the two feuding nations do not unfold well, the Trump administration will likely slap another round of tariffs on $300 billion of Chinese goods, which is expected to heavily impact apparel and footwear makers.

“At the same time, the market is gravitating to growth stocks, industry ‘winners,’ and companies likely better able to navigate potential tariffs,” UBS said in a note on June 17. “Nike's 4Q19 report probably gives the market increased conviction Nike meets these three criteria, which supports the stock even if the FY20 guidance update is slightly disappointing.”

Nevertheless, Wall Street expects a relatively strong report from Nike. “While Nike’s brand has clearly been on better footing, checks suggest industry trends decelerated in core global markets in F4Q,” Credit Suisse wrote in a note on Friday. “We think if Nike does beat on [revenue], it would be in the US outlets (where it planned to accelerate inventory to offset recent stock outs).”

Nike is expected to report adjusted earnings of 66 cents per share on $10.16 billion of revenue. In addition, the options market is implying a 5% move in either direction when Nike reports.

Other companies scheduled to report Thursday include ConAgra (CAG) and Walgreens Boots Alliance (WBA) ahead of the opening bell.

Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.

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