Cyclical stocks like Caterpillar (CAT) and Vulcan Materials (VMC) took the lead in afternoon trading on Thursday after President Biden announced a bipartisan deal on infrastructure spending. The agreement features $579B of spending above expected federal levels and a total $973B of investment over five years - $1.2T if continued over eight years.
Nike shares surged more than 13% Friday morning, hitting a record high, after the sneaker maker forecast full-year sales topping $50 billion as its North American business rebounds from the lows of the pandemic. In Greater China sales appear to be improving, with Nike management saying the company is confident about its ability to regain trust with customers there, amid threats to boycott Western brands over their comments expressing concern about forced labor in Xinjiang. During the three-month period ended May 31, Nike’s total revenue nearly doubled to $12.34 billion from $6.31 billion a year earlier.
A key inflation indicator that the Federal Reserve uses to set policy rose 3.4% in May, the fastest increase since the early 1990s, the Commerce Department reported Friday. The core personal consumption expenditures price index increase reflects the rapid pace of economic expansion and resulting price pressures, and amplified how far the nation has come since the Covid pandemic-induced shutdown of 2020.