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Pre-Market Primer: Nike, Inc. Struggles in China; Stocks Rise Before Consumer Sentiment Report


Japan is also beating back deflation.

Stocks are higher today ahead of a key report on consumer sentiment.

The final reading of the Reuters/University of Michigan Consumer Sentiment index for June is due out later this morning. Economists predict that it will show a slight improvement over the preliminary reading. They expect it to hit 83, down slightly from May's 84.5

The major stock indices are poised for a fourth straight day of gains. Dow (INDEXDJX:.DJI) futures were up 0.23% at 14,971 this morning. Futures contracts on the S&P 500 (INDEXSP:.INX) gained 0.30% to 1,611.50. Nasdaq (INDEXNASDAQ:.IXIC) futures climbed 0.26% to 2,907.00.

Safe-haven assets had another poor day today. Gold prices continued to fall overnight. Spot gold broke through the $1,200/ounce milestone, but recovered a bit. This morning, the yellow metal traded down 0.74% at $1,202.60. Treasuries also sold off with the 10-year yield rising 13 basis points to 2.46%.

Asian markets ended the day higher. The consistently volatile Nikkei 225 (INDEXNIKKEI:.NI225) rallied 3.5% after a huge economic data dump. Consumer prices rose only 0.1% monthly in May. On a yearly basis, deflation slowed to 0.3% from 0.7% in April as the government tries to stimulate the economy. Household spending was down 1.6% though, and the unemployment rate ticked up 0.1% to 4.1%. Industrial production rose 2% in May after April's 1.7% rise, but fell 1% from a year ago. Retail sales rose 0.8%, following a slight decline in April.

European shares mostly fell while leaders discussed cutting some of the region's red tape. France's debt to GDP ratio reached an all-time high of 91.7%, up from 90.2%. This is expected to reach 94% by next year. Today, President Francois Hollande said that the recession and lower tax revenue mean that France will probably miss their deficit target of 3.7%. Retail sales in Germany also recovered in May, rising 0.8% after falling 0.4% in April.

At the European Union Summit, Latvia was cleared for entry to the eurozone currency union and Croatia became a member of the EU.

Research In Motion Ltd (NASDAQ:BBRY) shares plunged 18.9% in the pre-market after reporting disappointing first-quarter earnings. The smartphone maker shipped 6.8 million handsets in the quarter and generated $3.1 billion in revenue, a 15% rise from the previous quarter. But it lost $84 million or $0.13 per share, missing estimates. The company didn't specify how many new BlackBerry 10 devices it sold.

Nike, Inc. (NYSE:NKE) shares fell 1.3% despite reporting a 22% rise in profitability. The sports apparel company beat expectations with $0.76 in earnings per share. Sales in North America rose 12%, but the company was forced to resort to discounts in China, where sales were flat.

Pfizer Inc. (NYSE:PFE) shares advanced 1.14% in the pre-market after the company announced that it will buy back $10 billion in stock.

Twitter: @vincent_trivett

Disclosure: Minyanville Studios, a division of Minyanville Media, has a business relationship with BlackBerry.
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