Nike and lululemon Head in Opposite Directions As GDP Doesn’t Effect Markets

The major indexes all move higher despite a revised lower GDP growth figure for the last quarter of 2013.

Feb 28, 2014 at 1:00PM
Longview Fool Image

Despite the release this morning of a gross domestic product growth figure for the fourth quarter of 2013 that was weaker than previously projected, the major indexes are all moving higher in early afternoon. As of 1:05 p.m. EST, the Dow Jones Industrial Average (DJINDICES:^DJI) was higher by 116 points, or 0.72%, the S&P 500 was up 0.67%, and the Nasdaq had risen 0.37%.

Gross domestic product growth figure was previously estimated at 3.2% for the year-ending quarter, but the revised figure today put that growth at 2.4%; analysts were expecting 2.5%. My colleague Alex Planes did a great job here explaining why investors don't care about this number today.  

All but one of the Dow's components are moving higher today. The sole loser at the moment was AT&T, which you can read about here. One winner within the blue-chip index is Nike (NYSE:NKE), as shares are up 0.8%. The move comes as Forbes yesterday reported that Michael Jordan made $90 million in 2013 simply from the royalties from his contract with Nike. Jordan-branded shoes sales are estimated to have hit $2.25 billion last year. That figure is amazing considering even current NBA players such as LeBron James only sold $300 million worth of shoes last year. For Nike, paying that $90 million to Jordan is well worth it, because his shoes sell and the company is making big-time dollars off the deal.

Another apparel company making news today is lululemon athletica (NASDAQ:LULU) as shares are down more than 5%. The drop comes after an analyst from Credit Suisse lowered the price target on the stock from $53 to $46. The analyst kept the neutral rating firm on the company. One reason given for the reduction was that communication issues from management to customers has hurt the customer-store relationship. Furthermore, margin issues in the coming quarters are projected to hurt earnings.

Outside the world of apparel, shares of Monster Beverage (NASDAQ:MNST), the maker of the popular Monster energy drink, are up more than 5.5%. The move comes after the company reported earnings after the closing bell yesterday. Revenue jumped to $541 million, a 15% jump from the previous year. The increased sales boost came as the company was under heavy fire about over health concerns of its product, indicating that while some may never drink a Monster, others don't seem to be concerned about the possible health issues. This company may still have a long way to grow, but investors need to have realistic expectations for Monster and a short leash.  

Looking for the Next BIG Thing? Look no Further

Opportunities to get wealthy from a single investment don't come around often, but they do exist, and our chief technology officer believes he's found one. In this free report, Jeremy Phillips shares the single company that he believes could transform not only your portfolio, but your entire life. To learn the identity of this stock for free and see why Jeremy is putting more than $100,000 of his own money into it, all you have to do is click here now.

Matt Thalman owns shares of Lululemon Athletica. The Motley Fool recommends Lululemon Athletica, Monster Beverage, and Nike. The Motley Fool owns shares of Monster Beverage and Nike. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers