romaine: nike tapped into this.t's latest earnings report is for the fiscal fourth-quarter, -- fiscal fourth-quarter, missing wall street estimates, earnings at one dollar 16 per share, but the forecast seems to be tied to the idea of what is going on with their supply chain . this isn't a demand story. people want to buy this, the question is can you get hit here and at a reasonable cost? taylor: the big drop in inventory is typically a good thing given big demand nike has come about replenishing that is not happening as quickly as once was. let's discuss this with bloomberg intelligence. give us your first take on what you make of these numbers? >> it is all about inventory. demand is clearly very high. we saw the north america and india revenue missed and that is due to not having enough inventory, because demand here has been strong over the quarter, and all year really. we think the inventory that is in transit, that is the key question. how much inventory is in transit? and is it enough to meet demand? because

the case of nike, they lowered to mid-single digits, msd. is that enough is the question "the street" asked today and i think in terms of a couple downgrades, 22 earnings, that's the story. 23 seems to be a story if everyone is willing to give them a benefit of the doubt on a growing fitness market, able to build the market aside from profits, they grew stamly, somewhat better than expected the core business, demand side of the story, we know is very solid. we know there's supply and suddenly ceo donahue sounds like the fed, the word transitory, i believe, was used. that's the question, how transitory we're ten weeks of production in vietnam and there's a question if it all ended tomorrow could they many ramp back up so disturbed but not shaken for one of the finest brands out there. >> and nike, this is a loss of ten weeks of production because of the factories closed, whether it be 50% of the apparel factories or 50% of the foot company factories. nadine, what do you say about nike today is it worth 40 times next year's earnings at this po

and you're in their board room and a fly on the wall, what is nike -- what are nike executives sayingay they do business for years or decades to come >> well, and that's the big challenge here is everybody is trying to figure out how do we shrink our lead times? by the way, covid has forced companies to accelerate and shrink those lead times doing things like 3d design. so that's helped there have been a lot of technology leaps over the last 18 months but we have to still consider that the average manufacturing pay per hour in vietnam is like 3 bucks. in the u.s. it's 20 bucks. so if you're going to move your facilities to the u.s., your cost structure is going to change drastically, so right now companies are chasing. they are flying stuff, they're chasing. they'll sell fall stuff for holiday. this is not going to normalize nike is saying until june. that's a long time away. >> yeah. you know, i'm not an expert but i believe that june is after, at least this coming christmas, maybe not the next one in 2022 i mean, any chance that nike or other companies, stacy, say you know what, eno

not just nike and adidas and nike reports at an odd time in the cycle. it is going to impact the entire industry. we have to order for christmas and holiday items now. that's what companies suggest because it is hard to get the stuff in the door. this is not going to be forever. this is certainly -- it is transitory which is -- i don't know how long it will last carol tome wasn't willing to commit in terms of when the supply chains heal i think we have to live with this but nike again the size and the scale that they have will fare better. you have to pick the spots within retail. offprice retailers will be just fine i think the dollar stores are not. >> nike's one of the big two companies reporting after the bell the other is costco. courtney >> hi. costco has been a pandemic winner but even when they come out and beat often we don't see the stock move markedly. it is a consumer staple and one of only retailers with monthly sales up dates comps in june, july and august grew 14.1% 13.8%. and 14.2% respectively the big thing to listen for is commentary on

and ultimately the valuation for nike around 46 times forward.ough it's a multiple over the last few years i think based upon both pricing power and again, nike will off set a lot of that production shortfall in pricing power. they'll probably net it out to minus 8 or 9%, so not as bad as you think. i just think this is a company that continues to execute in terms of innovation. their north american business to me, which again is part of what will drive those sales out of vietnam, i think continues just to be so strong that the multiple stays here. i look at the charts and i think around 150, a break of that is going to be difficult for the stock. but right now, look at restoration and lulu with those announcements have gone back to near all-time highs. >> guy, your take, too i want to highlight this maybe this is nike specific because they are more heavily into vietnam because everybody said get out of china, they did now we see this. there could be other companies two months of almost no production just ahead of the holidays i know people think

if nike were a country they would have 85 goals. the stock is down a percent. analysts were looking for a number closer to 12.5 billion. north america fell short a bit gross margins were solid 46.5 it speaks to the pricing power that nike currently has. the brand heat is there and very much intact, but the supply chain is an issue. inventory numbers were flat and reflects the two issues nike is dealing with sources 40% of total production from vietnam the country has been in a mandated shutdown for the last few months and that will delay shipments. they are dealing with shipments around the world being delayed and held up at the ports we expect to hear more when the cfo jumps on and that is usually when the company announces guidance it is not the demand that is the problem. it is just what it calls temporary issues like the production and the delayed shipping >> sarah, keep us posted obviously there is a big facet to the call we are still waiting for and that would be the guidance that sarah mentioned, tim. we talked about the issues, particularly with vietnam

a decent move in nike. i look at nike, still, as this great -- as we all know, great company. they do so many things right their growth is impressive across the rest of the world and, yet, and i look at it, scott, i still have to wait. i look at this company it's just pulling back now to where it was in july which is not that far down it's 158, 159, something like that, but the reality is it's a stock that trades at a multiple that i don't like. especially if you want to put that up against some of their competitors and you look at the growth rate of nike and growth rate of competitors out there. i think that you'll find their growth rate is significantly more than nike and yet you look at where the p/e is and you go back and don't have to go that far back in time to see what the historical p/e of nike is and it feels heavy. it made that monstrous move earlier in the year when it made that huge jump from the 120s up toward 150s. and it's never really looked back i just wonder, is there an air pocket there that could be an opportunity somewhere in the future that's one of the n

lisa: let's take a look at nike -- jonathan: let's take a look at nike. you have touched on this in the morning, a big focus on this. double digit to the mid-single digits with the focus on vietnam and supply. kailey: factory closures really heading nike where it hurts considering it sources 40 percent of its products from vietnam. the issue is not demand, it's on the supply side. nike says we can't get enough supply to meet that demand. overnight it was not just nike, cosco also saying it will have to raise prices by 3.5% to 4.5% because of some bottlenecks and higher input costs. jonathan: let's talk about this. the cost of shipping it 40 foot container from shanghai to l.a. or new york 18 months ago was about to k. it's now 12 k, 14 k, 16 k. that's a massive change. lisa: they are grappling with that and trying to figure out how much they could pass on to consumers and how much they could suck up. cosco said we are not that noble. we can't be a. we are a business and we have to pass it to you. so how much do consumers absorb? jonathan: and a well-known

i'm worried about nike i'm worried about nike, because this china number, which they are portraying aseing a supply problem, i think it's a demand problem. i think you can argue that other places around the globe, it could be a -- there's just not enough product, but i think these levels of greater china revenue grew 1%, that's just not supply now, the analysts to a person -- barclays agrees with me, but i have fold nike for a long time this was a different conference call some would say it's a disaster why? the typical one is a well orchestrated discussion about how things are going around the globe. this was, hey, listen, we screwed up on supply, we can't meet demand. yes, it's true you can't meet demand like toilet paper in costco i'm not buying it. i think china is a problem, and i'm not backing away form the numbers they're suggesting, when they say now we expect mid sing the digits versus the prior year guidance of low double digits? and then they immediately say, this is what they do they say, due solely to the supply chain solely i question whether the word "solely" is correct.

liz: take a look at nike today. more than any other stock, it's caught right now in a downward spiral. it's not all china-induced, but we've got to find out where nike stands in the final hour and the stocks that could be most vulnerable to following in its footsteps. or stumbles. closing bell ringing in 49 minutes. the dow clinging to gains of just 12 pointsen on this fizzle friday, shall we call it? "claman countdown" coming right back. ♪♪ flexshares etfs are built with advanced modeling. to fill portfolio gaps and target specific goals. strengthening client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. it's another day. and anything could happen. for a prospectus co it could be the day youn. welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. get ready for it all with an advanced network and managed services from comcast business.

i want to talk about nike.ered some jordans. >> we did want to talk about nike which has a different supply chain issue. that has to do with the fact that they are seeing huge bottlenecks in transit times, including from asia to get a lot of their shipment in. that has been a major issue and they are missing the latest earnings announcement. nike appears to be waving a red flag to the entire retail industry. warning that holiday shopping will have to be very early this year to make sure they have to -- to make sure they have the proper inventory available. all of this is after adjusting for currencies. that missed expectations of 12.5 million. it is all about the inventory because demand has been very high. among the issues outlined, the nike cfo said most nike factories in vietnam remain closed due to government mandates, shipping times from asia to north america worsened in the quarter. nike has gained a lot of steam in recent quarters. there is a lot of sport -- excitement about sports in the u.s. but in chi

the conversation when you talk about nike nike broke its 200 day moving average.ke that 200 day moving average, under armour, it rallied 40%. i am not saying it will, but it looks like it will bounce from here i would not be a buyer of nike i would be a buyer of underarmour. >> i will let that go. china and delta, that would be my concern for this quarter. >> we have had that conversation around nike in the last few weeks as we heard some of these concerns expressed especially by peters ultimately, nike, their path to glory has been innovation. they have pricing power not only because of their d.c. presence but where they have been able to push the supply chain to their advantage. they are one of the few that can. i don't love the setup into these earnings year over year the bar is difficult. but i am long on the stock and not going anywhere >> guy, what do you think of the setup going in >> the stock is off about 10% from the 174-ish level i think that was an all time high that move back in late may/june when it traded up to 152 in a straight line and then traded

will they sell as badly in china as nike shoes did? and last night, the chinese government outlawed cryptocurrency these are all different kinds of threats. we were worried about what would happen to the global economy if the chinese communist party decided not to bail out the millions of people that are owed money by evergrandebut it looks like the government will help out the little guy a program like that, for those who didn't do anything wrong, even will most likely punish the rich executives who drove evergrande to the brink of disaster this company is so big, it could damage the global economy. it could knock down commodity prices and it started to do so the white house held a meeting with tech titan to talk about the chip shortage and how china wants taiwan, which could be a major problem for our semi-conductor industry. we can assessment all these threats, all but the crypto threat the defenders of cryptocurrency, the myriad defenders, they're everywhere, and they told us not to worry about the chinese crackdown. some went so f

i'm looking at nike down over a month.the bad news is priced boo the stock already >> the correction in nike has generated an oversold buy signal as of the last week. it's funny if you look back at the chart it has a similar buy signal ahead of the june report and makes one to step in front of the earnings report there's good support on the chart not far from 148 to 151 and there's no resistance until the 50-day moving average comes into play and sets up flavor bring. >> quint, if not nike is there another company you would be a buyer of >> no. i'm not a buyer of nike here the stock is pricing in significant future growth rate trading 31 times earnings why the expectation is for a dollar 12 but the whisper number is $1.21. they have to say special to keep the upward momentum going in nike i'm not a fan of the stock i would sell it ahead of the earnings. >> okay. 159 a share. head to the website or follow us on twitter back to you. >> thank you is silver losing the luster. we'll look at whether prices are set for a breakout

i think nike will figure out way to navigate around it.iven the 10% drawdown, i like it i'll trade it. >> you can bet on the consumer and not nike where do you stand, karen? trade it or fade it. >> this is a tough one as jeff said the first two things he talked about were this vietnam supply chain issue. i don't know that it's only one quarter. i think they were talking about it going into next year and the valuation. it's expensive relative to itself i would say i'd evade it if that's allowed >> i like that >> i know it peaked. kind of overstated and now it's in, but i'm sitting out this one. >> i think we have to amend this game trade it, fade it, or evade it let's get to stictch fix now. results on tuesday steve? >> so, there's so much going on here when there's so much noise around a stock, i always go back to technicals. if you go back to probably right around december, it was the month where the stock rallied aggressively higher and it was nosebleed territory. it has come all the way back in. right now. so i don't, i mean, you could

of the nike story.ea that nike's not immune and had many times in the past of the vague china or asia related pr production issues and it's been given too much credit for being us lated. >> aside from the nike stock price move factoring in the comments from dhl and u.p.s., does it suggest the fed is behind the curve and might get a surprise when they have to tighten more than the market expected >> i think that there's evidence that we could see this -- parts of the inflation story be more persistent than transz fire. i think from an investor perspective this is an opportunity to understand the companies that should be afforded a premium for execution and those that continue to mitigate the impact of higher costs or pass them through to the consumer a thing that could happen is that we could see a softer cycle of consumer demand in china and that could spread globally to help us insulate a bit from the inflation factors but there's a situation whereby the fed has to get a bit more aggressive and that ce

action right now oil movies -- moves higher work from home names like zoom and docusign are lower nike weighs on the dow after an analyst downgrades the stock 59 minutes left to go in the session. >>. >>> coming up on the show today, the ceo of clorox joins us, as she marks one year at the helm she'll tell you how she's managed through the pandemic. >>> plus the chief operating over of match will be here about the apple ruling >> first up, let's focus on the , seema mody with a look at industrial stocks mike, start us off with the market a lovin period of softness on the s&p, this kind of seesaw action where we're seeing large nasdaq stocks in a prolonged breather that's working to the detriment of the s&p , unwound that much up side. the other dynamic, there's been a pattern, especially the last three months around the 18th or 19th of the month. vs on the chart on the s&p 500, they allhappen right around there. that's what we're headed for a in a few days. will it continue that's the question. how far we have come, real far, more than doubled, of course, in the s&p. this is the averag

overnight, nike earnings were relatively good with regard to sales. is that demand is there and supply isn't. the big number in transit, the inventory number, $6.7 billion. that is a flat number normally. you want to see flat inventory levels but nike is flat because everything is still out in see. footlocker, under armour, lululemon, this is having an impact on countries -- companies that source overseas. it is not just about vietnam where they make the materials but the port congestion. where is tom. does he have something to say? jonathan: looking forward to the close. leland miller joins us now. we've got to have an important conversation that i'm sure has frustrated you through the week that everyone almost exclusively have been overwhelmingly focused on whether this is a lehman moment or not. you think there should be a bigger focus elsewhere. where? leland: you have to say this is not china's lehman moment. there is not major contagion risk. china has the tools to deal with it the real signal is what there was a de-risking of the financial sect

come up when you talk about nike. i find that very interesting i think lulu has got a lot more room to the up side. it's a name i've been in for a long time. i have absolutely no thoughts at all of getting rid of this stock. >> that's exactly where i was going to go with this, pete. forward pe on lulu is 55, nike is 37, 38, guy under armour is about 35 both again higher in the after hours session on the back of lulu's quarter which one do you like the best >> you didn't do it. you're giving me would you rather rather and for me it's pretty easy. i think under armour is getting dragged up just on the back of this respectfully. it's lululemon it continues to be that's not a knock on nike you look at this quarter karen hit the nail on the head when you see that type of operating margins given the expectations for it, it's a company running so much better you look at the sales growth and then look at the underlying inventory build, it suggests they're going to continue to do exactly the same good for them. kudos to those

nike is taking note of it.rade it is a dow component so we watch it closely, joe. i'm going to go back to watching the ancillary ryder cup coverage along with "squawk box" coverage. >> sneakers, cars, anything with chips. actually sneakers do have chips. >> some of them do >> all right dominic chu, thank you we can go till 9:00 probably just going totally unrelated stuff. >> i'll see you back at 8:00 and we'll talk a little bit more about it. >> that's when it starts i guess i'm not supposed to say that anyway >> got two eyes you can watch two screens. >> exactly exactly. >>> if white house advising federal agencies to prepare for a government shutdown which could happen next week been a long week, it doesn't sound like there's a lot of clarity at this point? >> it's going to be a longer week next week, becky because congress still does not have a clear plan for avoiding a show down over government funding and the debt ceiling ahead of next week's deadline. the senate is scheduled to vote on a bill to fund the

nike direct sales were up 73%, right, in reopen mode.tunity for this, and so it was an opportunity for me to -- you know i'm a long-term investor, scott. so i'm not a trader. i'm going to hold things for a very, very long time, but it doesn't mean i can't work to get my average price better. this is what the story was here. >> i appreciate you telling your story to us. tiffany mcgee, see you soon. >>> we will do "final trades" next it all personalized. with ibm, you can do both. businesses like insurers can automate it processes across clouds. so agents can spend more time on customer needs. and whatever comes your way, you've got it covered. saving time and improving customer service, that's why so many businesses work, with ibm. i wonder how the firm's doing without its fearless leader. you sure you want to leave that all behind? yeah. stay restless with the rx. crafted by lexus. experience amazing at your lexus dealer. the best things america makes are the things america makes out here. the history she writes in her clear blue skies.

what were some of the standout topics and issues that nike highlighted? tom, we saw those sales missing estimates slightly. this is all about supply. the demand remains robust and this is down to reduction and shipping delays and higher costs that they face in terms of production as vietnam factories being shut down due to covid. they get about 40% of output from there, so that has been a particular strain on them. but also those shipping delays. we are seeing a record number of container ships to l.a. from asia to america. those nearly doubling to 80 days and a lot of that congestion. we saw the year over year inventory pretty much flat and the question is how much of those inventories are in transit and are they going to get them in time for what is the crucial holiday shopping season. tom: thank you for the breakdown of that chills -- sales forecast. your markets right now, stoxx 600 down by .6%, the cac 40 down .7%, less dire picture in italy, down .4%. stay with us. this is bloomberg. ♪ ♪ shery: -- francine: welcome back to the open, 30 minutes into

nike of course in the joe t t.isten tomorrow night and see if there's clarity on the covid-related factory closures in vietnam they began in the middle of july and been extended into september. 50% of nike footwear comes from vietnam. ultimately will nike have to lower guidance as a result of that we'll find out tomorrow evening but i'm not doing anything ahead of tomorrow night's earnings report. >> you personally sold it a while ago. we talk about the etf. you did own it but you sold it. >> yeah, violated by own discipline, which proves if you cut us, we all bleed we're humans, we make mistakes i was concerned about the social aspect as relates to esg for nike, labor conditions in china. i sold out at 130, the stock rallied significantly. i was wrong. it is still in the etfs. >> give me a name for a final trade if you could, please. >> garmin. >> thank you steph? >> pf corp great brands gross margins are going higher 3% yield. >> mr. all in. >> marathon petroleum. >> big day for energy, that's for sure dr. j. >>

they brought margins up and we think that's the key to the nike story longer term.tchfix, we think there's a lot of opportunity for the country and i had a great quarter and we think it's a $4.5 million market cap and a ton of data on their customers and theal algorithms are effectv and it can't compete with this model and it's too good of a model and there is execution risk and this could be a much bigger company in a few years and verizon is a little bit defensive. just keeping the beta of the portfolio within range and we also think verizon has a lot of opportunity with 5g rolling out to grow and improve their margins, as well >> all right thank you. coming up, unusual activity and we'll find out where pete sees opportunity in the options market today and we have another debate between farmer jim and steve weiss. i n'wa f tt.cat itorha get decision tech. for insights on when to buy and sell. and proactive alerts on market events. that's decision tech. only from fidelity. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ what happens when we welcome change? we can transform our workforce overn

brand nike, brent apple, the labor market -- brand nike, brand apple, the labor market.om: certainly the optimists feel like that will clear out at some point. i'm not so sure, particularly coming across the pacific, where most of the apple product is. not only apple, but everything else that is overpriced, what does it come down to? does it come down to 17% revenue growth, 12% revenue growth? or do we get back to single-digit? is that pricing right now? jonathan: how about that revenue story? the margin story for morgan stanley and going into the year -- and others going into the year. lisa: this is a disagreement between the bulls and the bears about just how much margin compression there is going forward. the fact that forward expeditions for inflation are going up as quickly as they are for consumers definitely a concern. tom: let's bring up the umbrella shot again. for those of you on radio, it is orange umbrellas. this is me and matt miller a few years ago. what is so important about the emotion of this shot, i sold every share of apple that day. jonathan: that was

this is nike the whole panel you know, over the last couple weeks we've been talking about it, becausece that they gave and the stocks decline, since then down about 17% from those recent highs, just above 174, and i'll just mention this. remember late june in their fiscal q4 result the stock gapped up 15% to an all-time high, runaway breakout i think it likely fills in a little more of that gap and at some point you want to buy a stock like this, because if you look quarter over quarter and the two sets of results they had, we can put our finger on what happened here and speculate they're likely to get back to some of the trends they reported in late june and the guidance they gave. to me, filling in the june gap, nike looks interesting to me >> guy, you've got one a name we don't often talk about >> we do from time to time, many years ago on a "fast money" meeting i suggested we buy an rv, paint "fast money" on the side and go cross-country doing the show for a few months and after the laughter subsided i was kicked out of the room seems if you look at this quarter i was ahead of my

the very first closing bell were gonna talk to the cofounder of on holding on how they plan to kick nike and the rest to the curb. from the wwe to electric motorcycles founder and chairman shane mcmahon lays the smacked down why he thinks the electric motorcycle from italy will soon be wearing a championship belt. so much to talk about but i want to start with the breaking news we've been watching this closely in the last 23 minutes apple launching a come back as we kick off the final hour of trade down more than 1% this morning on top of the 1% lost yesterday shares have punched back into the green up a quarter percent, right now after unveiling six new iphones and ipads the apple watch series seven yesterday we told you yesterday at this time it was predictable that the stock would drop because it post new product rollout but nasdaq.com pointing out that the stock is often power hired after rollouts, 2019 apple dropped 5% from the high it reached a week before the unveiling of the iphone 11 which was september 10 and subsequently started rising, it is now 150% above that level from 201

look for nike as strong. it was basically unscathed from the pandemic but macrofactors could hurt.tfalls the country has been closed almost two months because of covid. and surveys are showing that nike is back in favor in china there are concerns about these rolling covid shutdowns in the country. the third thing to watch will be a bright spot. back to school we know shopping has been strong air force one, air jordan ones, dunks, they have all been strong for what kids want nike, expectations are a little high, but there has been warnings especially on the supply chain side, vietnam and china. >>> and a ceo interview. ups following the rough numbers last night on fedex. mike >> the supply chain stuff i think qualifies as the main incremental threat to the pace of growth. obviously delta is still with us, but that seems to be the thing everyone is fixated on >> temporary >> it's about the pacing, not the ultimate destination of growth nike is a good 10% off the early august highs because of these comments about vietnam >> going forward on the dollar which had a strong inter-day mov

most of the rain of nike for a few showers dotting in the morning, continuing to the dais and then pullingto go fight would show in the sunshine. fair bit about. most of the rain of nike for showers dotting in the morning, continuing to the dais in north—east scotland with some sunny spells. as i said, pleasant in that strong september sunshine but out of it you will notice how cool it feels, particularly for scotland, 12 or 13 degrees here. we should be at 15 to 18 in the uk in a state of the year. another area of low pressure pushing its way to the north, and assist potent as the one we seem to thursday but overnight rain craving for sunny spells for many, lots of plywood to southern and western coasts, chance a few showers, temperatures closer to the seasonal norm. then as we finish the weekend and go into the weekend and beyond and go into the weekend and beyond and goes into thejet and go into the weekend and beyond and goes into the jet stream and from this massive trough to the rest of us. within that, we will get a slow—moving broad area of low pressure close by. this is going to f

and footlocker that means when nike gets product out, footlocker will be the first place. >> thanksou put your money to great rotation, is that right trust. >> that's right, it looks like it's time to buy value stocks, the russell 1000, 2% over the past three months and 5% rise but yields are rising. it may be time to play catch up. >> the reopening play, thank you for that. great i guess. to read more, check out barron's.com and follow us on twitter at barron's online. let's offer us, see you next week on barron's roundtable. ♪♪ cox and the fox studios in new york city this is maria bartiromo wall street. maria: happy weekend everyone welcome to the program analyzes the week that was an helps position you for the week ahead. i am maria bartiromo. a wild week on wall street this week with years of the collapse of china second largest property developer. new comments from the federal reserve. on where things go from here. a big warning for americans investing in china i'm speaking with florida senator marco rub

some people worried nike may be the next product chinese government cracks down on. they have been telling us for 15 straight points because they don't think a lot of people feel it this hinge has nine lives. nighke is too hard to short. i know we're all worried about the teldelta variant. i crust them to say things that better but not perfect i hope the analyst grill them for how hard it is to get help now. they tend not to ask us. it's going to be this. it's going to be the dell analyst. i think michael dell will outline ha his plans are to do for vm ware. as far as i'm concerned, dell is a genius and honestman and he's worth backing. i think he dazzles straight down. you can buy some dell. all right. it's got to be tragt down. finally on friday jay powell speaks again let's hope he doesn't have some sort of do over. he has an encouraging story to tell we're probably headed into a period of heightened negativity. throw it away less you get picked off by the bears. harvey in florida. harvey >> caller: jim, thank you for taking my call >> my pleasure >> caller: i bou

rising modestly as well as that get more on nike. quarter sales missed estimates as supply chain issues continue to hurt its efforts to keep up with demand. joining is now for details is the senior e-commerce and retail analyst. tell us more. >> we got off the nike earnings call and the supply chain had a prolonged factory shut down. it cannot keep up with demand. they came in below expectations for double-digit sales gains to seeing sales declined by low single digits, which is pretty discouraging. all of this is near-term in nature. we will get past the factories as we ramp up production over the coming months. it will impact holiday demand which is the biggest concern going into the corridor. shery: how did they do in china? i remember the national boycotts last quarter. >> china seems to be gaining background. their sales are roughly flat in china. they beat consistent -- consensus estimates. the shortfall we saw in fiscal q1 was in india where we believe it was due to not having enough supply. shery: senior e-commerce and retail

courage to come forward and blow the whistle on the wrong that he thought he was witnessing at the nikeas the catalyst for the investigation which led to 70 twists and turns but eventually to his ban in 2019 and that was appealed and argued down in the court this year. and today we learned that the bands have been upheld. learned that the bands have been uheld. x ., ., ., upheld. usada had a counter appeal wantin: to upheld. usada had a counter appeal wanting to lengthen _ upheld. usada had a counter appeal wanting to lengthen that _ upheld. usada had a counter appeal wanting to lengthen that four-year l wanting to lengthen that four—year ban and the court said it was out of and excessive. you ban and the court said it was out of and excessive.— and excessive. you would have to ask usada about — and excessive. you would have to ask usada about that — and excessive. you would have to ask usada about that boy _ and excessive. you would have to ask usada about that boy | _ and excessive. you would have to ask usada about that boy i would - and excessive. you would have to ask usada about t

all companies like nike for example aren't going along for the ride. charles: chino? >> fall is notoriously choppy and we have not had a 5% correction or pullback in the past year. you have some catalysts we are keeping on ion that could cause volatility appeared china-- china u.s. tensions is heating up. we also have that the feds close to tapering and let's also talk about tax increases that are on the table. all of these things could cause volatility, but it could also cause upside surprise if they go well, so i would be a buyer on the dip if you can get in fast enough to. charles: greg, your thoughts? >> charles, you already know i'm on record as saying we will see 6% plus ebi and 5% course of the market will be further tested from here. all indications are that inflationary pressures are intensifying. the dumbest policy the fed enacted hasn't expanded the labor pool in the way it would like with trucking and shipping costs elevated and will likely remain that way for the year end the supply chain as you intimated seems to be more fractured than we originally expe

. >> how do we look at it against the lents of a nike, per se, in terms of their issues with supply a lot of their fact torries are shut down because they operate in southeast asia, yes they're able to not possibly promote as much, or how do we think about that offset? >> great question. two parts to that. it doesn't mean that every brand that vendor is going to do well. depending on what they have available. nike said they will have problems and growth will slow, so some of these brand vendors will have issue. i'm talking about retailers. retailers are different from specific vendors you also mentioned margins those will just keep expanding we have already seen significant margin expansion, especially among the troubled apparel/department store sector. they haven't had to discount as much i believe that's going to continue throughout the fall we see that in the holiday period one of the old songs and retail stories is your most profitable hours are on christmas eve when all the husbands come in, and they're absolutely desperate it may not be what she wanted, but he's got to come home

and footlocker that means when nike gets product out, footlocker will be the first place. >> thankss that right trust. >> that's right, it looks like it's time to buy value stocks, the russell 1000, 2% over the past three months and 5% rise but yields are rising. it may be time to play catch up. >> the reopening play, thank you for that. great i guess. to read more, check out barron's.com and follow us on twitter at barron's online. male announcer: the world is seeming more on edge than ever. amidst discouraging cultural change, it's easy to find ourselves dissatisfied, perhaps even at a crossroad in our faith. you may be missing out on the most thrilling and most satisfying part of the christian walk. in this special 20th anniversary edition of his foundational book "empowered by praise," dr. michael youssef will guide you into a richer understanding of god that will forever change your relationship with him. filled with practical scriptural guidance

this as production and shipping delays have hobbled nike's efforts to meet strong demand for shoes andc wear. sales in china also remained lackluster, rising only 1%. global news when he four hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. tom: coming up, the u.s. cdc has recommended covid booster shots for americans who received a pfizer jab in what could be a shot in the arm for the biden administration's flagging vaccine drive. more on that next. this is bloomberg. ♪ tom: welcome back to "bloomberg daybreak europe." i'm tom mackenzie here in the city of london. the u.s. is set to begin giving covid-19 booster shots to millions of americans as soon as today, but only some citizens will be eligible despite a white house drive for more access. for more, we're joined by michelle cortez. will this give something at least of a shot in the arm to biden's vaccine efforts, which we know have been lagging with an entrenched minority refusing to actually take these vaccines? michelle: millions of vaccines are going t

>> because nike, they had like four, five people.haq emblem, i had the commercials, i had everything in my head how i wanted to go. when i went to reebok, they said they were going to do it. we promised nike that we would, you know, listen to them. i wore my reebok jacket to the nike meeting. [ laughter ] you know -- >> jimmy: they didn't like that? >> no, they didn't like that. i came back and i signed with reebok. the partners i have now, a company called authentic brands group, the salter family, jamie, cory, we saw that reebok was kind of drifting away. so they fought long and hard for it. and now we own it. we look to bring them back to prosperity. >> jimmy: will you bring back the reebok pump? >> yes, of course. [ cheers and applause ] >> jimmy: you have to bring back the pump. >> we will. a lot of retro reeboks will come back. >> jimmy: tell me about this concert. first of all, it's to benefit the boys and girls club? >> to benefit the boys and girls club. to also benefit underprivileged children. when i was coming up, boys an

and footlocker that means when nike gets product out, footlocker will be the first place. >> thanksthen you put your money to great rotation, is that right trust. >> that's right, it looks like it's time to buy value stocks, the russell 1000, 2% over the past three months and 5% rise but yields are rising. it may be time to play catch up. >> the reopening play, thank you for that. great i guess. to read more, check out barron's.com and follow us on twitter at barron's online. let's hello, welcome to kaiser, i am larry kudlow. in case you didn't see it this morning, there's a blockbuster news article on the front page written by ringling way, a chinese reporter entitled xi jinping aims to rein in chinese capitalism, socialist vision. in other words, xi jinping is

hobble nike efforts to meet strong demand for shoes and athletic wear.ising on the 1%. bp is temporarily shutting u.k. gas stations. a small number of other sites have been affected. the u.k. exit from the eu has constrained the flow of workers from the continent and deliveries have also been impacted. paul: going up on bloomberg, special on the evergrande sacca. david and glass joins us. david, what is on the agenda? -- david ingles joins us. what is on the agenda? david: whether you looking at dollar-denominated debt or property shares, there are two things. the pain seems to be around evergrande and recovery rates of 25%-30% of renick and assistant -- 25 percent-30% are fairly consistent. there is a larger conversation in china around common prosperity. the people's agreement is a very big topic when it comes to inflation and anybody holding dollar debt there. what will that mean after evergrande restructuring is one part of the conversation. the other is whether the pboc comes in, that was the reaction in shares yesterday, in a big way to inject more

and footlocker that means when nike gets product out, footlocker will be the first place. >> thanksst. >> that's right, it looks like it's time to buy value stocks, the russell 1000, 2% over the past three months and 5% rise but yields are rising. it may be time to play catch up. >> the reopening play, thank you for that. great i guess. to read more, check out barron's.com and follow us on twitter at barron's online. twitter at barron's online. let's - [mike] lumber, the cornerstone commodity that frames our everyday lives. it keeps the country as we know it sheltered, heated, furnished, and a whole lot more. but wrestling this raw material out of our forest and into our homes is not for the faint of heart. - ah! mother (beeping). - [mike] it takes old fashioned grit. - i'm not getting any power up there. - [mike] monster machinery. - a lot of people get hurt doing it. - [mike] and nerves of steel to do the most dangerous job in america. sorry, crab fishermen.

using nike data, you can clearly see the impact of the lockdown which began on may 31st.orts you see coming in were made before the lockdown. as the lockdown has progressed, import volumes will drop and have dropped even if the lockdown which expired at the end of the month, manufacturing will still be an issue. here's why during the lockdown, 20,000 workers have left the city to go back to their hometowns. export officials are saying tens of thousands of workers are currently stranded in the neighboring provinces and cannot return to work this is where the investment comes in investors of the companies nee to expect low manufacturing output which means less future product arriving on the shelves for the holidays we are seeing that now with a drop in volume of vietnamese imports arriving into the united states in the next seven days. unfortunately, the bad news does not stop here. the congestion at the ports will further delay product arrival. to understand the delay, check out the shipping vessel "the edison." she left vietnam on august 9th for the port of l.a. carrying

develop and has never been healthier for nike. i'm wearing a pair right now. [laughter] jonathan: carry on, saira. saira: the vietnam factories are opening right now, and they have scale, so nike is going to have more power in that area. we think going forward, they can beat earnings next year. jonathan: is that a temple it for you this earnings season? are they buys for you? saira: likely we will see a lot of companies talking about supply chain issues and may be missing opportunities because of it, but we are looking for companies with the power to reopen and overcome those supply issues. another name we like is a mall company. malls are not dying. a lot of people want in on the channel business, a combination -- want an omni-channel business, with accommodation of brick and mortar. it is trading at a discount because it is a mall, so that is another strong play going forward. jonathan: banks are bouncing back as well. where do you like the financials right now, within the banks themselves? goldman very different to bank of america. what do you like? what ki

nike, there's a note today saying nike is back in favor with the chinese government. 51% of the footwearhat is made in vietnam where there's supply chain issues starbucks is down 20% so far that seems like it's not a great thing. >> okay. >> so give me another one. >> i don't know, carl, you got anymore? i gave you otis, starbucks, nike, apple. what else? >> i gave you carrier. caterpillar. >> oil is at $70 buy conoco >> okay. >> we'll talk about more in a minute >> tesla the numbers are coming through. >> china, do i have to worry at all? >> one of the stories this morning was, how silly it was that the evergrande situation impacted shares of kroger or best buy or twitter yesterday. >> yeah, that's stupid now, look, if it has to do with minerals, like you don't want to be a big seller of iron here one of the things that has depressed the steel stocks, if there's less demand in china, maybe they're going to find a way to get around, send it to mexico it wasn't the two plants that they're planning, this is hurting -- >> some capacity expansion of your own. >> nucor is only down a quick 20

we'll see how they open, but they are down so far. >>> nike is cutting the sales forecast for the yearexpect a supply chain crunch where products are stuck in transit. nike is feeling the pain of factories being closed in vietnam due to the covid lockdowns and that's where half of their shoes are manufactured. >>> costco limiting purchases on certain items but not due to panic buying. shipping delays and truck driver shortages is to blame this time around. costco explains they have plenty of merchandise, but there are delays in getting the products. >> i thought it was just a shortage of toilet paper, because somebody hit our house pretty hard. >>> say hello to the iphone 13. most reviews find the new models a small step up from iphone 12 with improved battery life and camera. new iphone prices range from the mini at $699 to $1,099 for the pro max. >> i'll just wait. >>> trending this weekend, drake and the weekend getting their own university course. >> toronto's x university -- isn't that the university from x men? well, it's called deconstructing drake and the weekend. it will focus

but these could be good keys to nike success, the issues are so hot right now.got a text today. mom can i buy these. i'm getting them, it is a deal read the next thing that i know, then mo registers the price. and all right, yesterday val said that that is keeping a close eye on wells fargo until it fixes its widespread problems. most running in the make and the sales practices, aggressive sales practices and others are saying that is stagecoach will soon be pulled by the bull. this stock is up 105 percent year over here. >> so about a month ago and major wall street ceo and we were starting to go through the competitors and what he likes is an investment targeted how about robin hood do you like that. he said no forget about them. and look at wells fargo's read there always in trouble these days. the funny scandals, expenses to codename a lot of problems, congress breathing down their neck and he said no, look at their stocks over the past year. this is low hanging fruit and he basically said this, they have a great management team in the road by charlie sharp.

nike is down about 6% today.et we have seen tremendous volatility without a lot of movement do you know the dow jones industrial average has moved 1,300 points this week, from its low on monday to its high? and yet we are essentially unchanged from where the close was last friday. that is remarkable volatility. and everybody's head is spinning at this point. i think what's going on here, kelly, is they are -- the market is choosing to believe the glass half full narrative for the moment the glass half full narrative is that powell has got things under control. inflation will not be as serious as people are concerned about. rates are not going up for a very long period he keeps telling us all that and the global economy is slowly improving. you can see that kelly brought up oil stocks. there are very few new highs that are out there right now but there are a whole bunch of oil stocks that are at new highs. conco, cabbot, one oak they are believing in glass half full at the moment but there are reasons to have worr