Hi Reader, here's what you need to know for June 28th in 3:05 minutes.

💰 The weed market is growing, and the companies involved are too. Join Webjoint’s CEO for Investing In The Cannabis Supply Chain on June 28th, and find out how you can get high on their supply. Get your ticket today

Today's big stories

Sportswear giant Nike reported a much stronger quarterly update than analysts expected
Stocks are expensive, sure, but there are six good reasons their rally might be far from over – Read Now
The latest rebalancing of the Russell 3000 index shows SPACs are legit

U-Nike-ted States Of America

What’s Going On Here?

This is Nike’s country, we’re just living in it: the sportswear giant reported strong results on the back of resurgent American sales late last week, and its stock initially jumped 13%.

What Does This Mean?

Nike’s quarterly revenue and profit both came in ahead of forecasts, while its ecommerce sales kept doing their thing: they were up 41% versus the same time last year. But the real winners were its North American business – whose revenue more than doubled from this time last year to hit a record high – and its wholesale arm. That segment sells the company’s products to the likes of Foot Locker and Dick’s Sporting Goods, and it did well out of the fact that those retailers were actually, y’know, open.

Why Should I Care?

For markets: It’s about quality, not just quantity.
Nike’s Chinese business made up for a lot of lost growth during the pandemic, but political disruptions in the country can cause issues at a drop of a hat. Case in point: the company expressed concern last quarter about allegations of forced labor in Xinjiang, and consumers threatened to boycott the brand. Investors, then, will have been glad to see Nike’s all-important US market roar back to life – especially since it encouraged the company to up its earnings forecast for the rest of the year.

The bigger picture: Nike and FedEx go hand in hand.
Logistics giant FedEx has been benefiting from Nike and its rival retailers’ booming ecommerce sales, and that played a big part in the stronger-than-expected quarterly sales it shared on Friday. The company’s profit would’ve beaten expectations too, but pension-related costs got in the way. That ultimately deterred the company from making an earnings forecast for this year, which might be why – despite everything else going to plan – investors sent its stock down on the announcement.

You might also like: The other unstoppable trends you might want to invest in.

Copy to share story: https://www.finimize.com/wp/news/u-nike-ted-states-of-america/

🙋 Ask a question

2. Analyst Take

Don’t Give Up On Stocks Just Yet

What’s Going On Here?

The dust has settled after last year’s ugly coronavirus-inspired crash, and global stocks have risen nearly 90% from last year’s lows.

Unsurprisingly, that’s brought out the naysayers who see a bubble that’s destined to burst before long.

And it’s true that stocks are unlikely to give blockbuster returns at current valuations – and it’d certainly be hard to argue that the market is anything approaching a bargain.

But actually there are a few very good reasons not just why stocks aren’t necessarily going to crash, but why their rally could have further to run.

So that’s today’s Insight: the six reasons stocks’ rally might be far from over.

Read or listen to the Insight here

🤝 Fancy working with us?

If your business shares our goal of changing the world of finance for the better, there’s no better place to showcase your mojo than this very spot in our daily newsletter.

You’ll get your message out to more than one million engaged investors, and speak directly to the very people who can help take your business to the next level.

Interested? Just drop us a line.

Get In Touch

Eau De Stooge

What’s Going On Here?

The Russell 3000 index underwent its annual rebalancing on Friday, and it’s clear that SPACs – once the outsiders of the investing world – are well and truly part of the corporate in-crowd.

What Does This Mean?

The Russell 3000 – which aims to be a benchmark of the entire US stock market – measures the performance of the 3,000 most valuable listed US companies and represents approximately 98% of the value of all American stocks. And once a year, it’s “rebalanced”: that is, the companies that are too small to qualify are removed, and those that have grown in value are added. So far, so normal. What’s unique about this rebalancing is that 20% of the newly added companies are firms that joined the stock market by merging with a special-purpose acquisition company (SPAC).

Why Should I Care?

Zooming in: There’s no escaping SPACs.
Some investors are still skeptical about SPACs, and with fair reason: the companies have to agree a merger within two years of listing or else return the cash they raised, which means they might strike deals for the sake of it. Regulatory issues surrounding Lordstown Motors and Nikola won’t have done much to change their minds either. Now, though, they’ll have no choice but to accept SPACs, which – as part of a major index – will be included in the passive funds some of them track.

For markets: Cue the upheaval.
A company’s stock price tends to get a lift when it joins the Russell 3000, as investment managers and passive funds – which have around $10.6 trillion tracking Russell’s US indexes collectively – rush to buy up its shares (tweet this). The reverse is true too: investors tend to ditch the shares of anything that leaves the index. So when you consider that more than 250 companies were estimated to be added on Friday, you can bet there’ll have been a lot of volatility for investors to contend with.

You might also like: Why SPACs are still all the rage.

Copy to share story: https://www.finimize.com/wp/news/eau-de-stooge/

🙋 Ask a question

💬 Quote of the day

“A surplus of effort could overcome a deficit of confidence.”

– Sonia Sotomayor (an Associate Justice of the Supreme Court of the United States)

Tweet this

Electrify your IT, beat the competition

Isn’t it annoying when something goes wrong with your IT at precisely the wrong time?

Scratch that. It’s always precisely the wrong time.

With Electric, you’ll get real-time IT support right when you need it.

Electric’s solutions are chat-based and lightning-fast, which means no more wasted hours on the phone. Time is money, after all.

In fact, according to Forrester’s Total Economic Impact report, companies that use Electric experience a 105% return on their investment. Put simply, they make up the entire cost in the time they save.

You’ll even get a pair of Beats Solo3 wireless headphones just for taking a qualified meeting.*

So save yourself time, money, and heartache: visit Electric today.

Visit Electric

*You must be an IT decision-maker at a US-based company with 15-500 employees to qualify.

When you support our sponsors, you support us. Thanks for that.

🎯 ON OUR RADAR

Because sometimes stocks aren’t enough. Retail investors are flocking to this emerging alternative investing platform.*
Whatever happened to donations? Inside Amazon’s mass destruction.
Travel isn’t cool anymore. Every vacation comes with a carbon cost.
Cash savings are dead. Try ChipX instead: award-winning automatic saving and seamless access to multi-asset BlackRock funds. Capital at risk.*
10,000 feet ain’t no thing. This biologist fell to Earth – and helped save it.

When you support our sponsors, you support us. Thanks for that.

🌏 Finimize Live

💄 Hey hey, good lookin’

Beauty stocks have been sitting in their house, lounging around in their sweats for the last year. But now they’re ready to hit the town again: join Jefferies’ managing director on June 30th for How To Give Your Portfolio A Beauty Makeover, and find out how to spruce your portfolio up.

🌿 Why Now’s The Time To Invest In Cannabis: 6pm UK time, June 28th
🍔 How To Make Money Going Meat Free: 6pm UK time, June 29th
💄 How To Give Your Portfolio A Beauty Makeover: 6pm UK time, June 30th
🔥 How To Drive Change From Within: 6pm UK time, July 1st
💡 Finding Wisdom In A Crowd: 2pm UK time, July 2nd
🤑 How To Bet On Bitcoin’s Next Run: 2pm UK time, July 6th
🌎 How To Profit From Diversity And Inclusion: 5pm UK time, July 7th
😎 How To Craft Your Own Trading Strategy: 6pm UK time, 8th July
💰 How To Make Crypto Work For You: 6pm UK time, July 14th
🤔 What Does Inflation Mean For Your Portfolio: 2pm UK time, July 15th
🍷 Investing In Château Neuf De Pap: 6pm UK time, July 19th
🌿 How To Invest In The Future Of Cannabis: 6pm UK time, July 23rd
📈 How To Protect Yourself From Rising Prices: 6pm UK time, July 26th

❤️ Share with a friend

Your Referrals: 0

Thanks for reading Reader. If you liked today's brief, we'd love for you to share it with a friend. If they sign up on your unique link, you’ll earn some sweet swag.

Share your unique link:

https://finimize.com/invite/?kid=177ZWC

You stay classy, Reader 😉

We’d love to hear your thoughts. Give feedback

Want to advertise with us too? Get in touch

Image Credits:

Image credits: Paul Weaver @paulweaver - unsplash | Patrik Slezak - Shutterstock

Preferences:

Update your email or change preferences

View in browser

Unsubscribe from all Finimize Emails

😴

Crafted by Finimize Ltd. | Third Floor, 1 New Fetter Lane, London, EC4A 1AN, UK.

All content provided by Finimize Ltd. is for informational and educational purposes only and is not meant to represent trade or investment recommendations. You signed up to this mailing list at finimize.com or through one of our partners. © Finimize 2021

Finimize - 🇺🇸 Nike bless America

Today's big stories

U-Nike-ted States Of America

What’s Going On Here?

What Does This Mean?

Why Should I Care?

Don’t Give Up On Stocks Just Yet

🤝 Fancy working with us?

Eau De Stooge

What’s Going On Here?

What Does This Mean?

Why Should I Care?

Electrify your IT, beat the competition

💄 Hey hey, good lookin’

Older messages

👻 Buy a house... if you dare

🌎 EVs are taking over the world

😓 Soho House needs this IPO

📈 Stock picking is the future

🏅 Goldman's commodity play

You Might Also Like

🇺🇸 US inflation rose

Don’t think you can afford life insurance?

What are you hiding Elon?? (Tesla’s secret 69% dividend)

Giving thanks for inflation, Paul Mescal and more

💚 Holding space for career pivots

Harry's Take 11-27-24 Michael Saylor Has Seen an Impressive Learning Curve Playing Bitcoin at MicroStrategy!

The heterogenous effects of carbon pricing: macro and micro evidence

💉 A slimming proposal

Earn higher APY with a short-term CD

Do You Expect to Rely on Social Security?