Nike, Inc. (NYSE: NKE) is experiencing a significant increase in its stock price, rising by 5.69% to reach $112.86 during Wednesday afternoon trading. This surge comes in the wake of the latest economic indicators, specifically the Producer Price Index (PPI) for final demand.
The PPI, which measures changes in the prices received by producers, showed a decline of 0.3% month-on-month in May. This decrease follows a previous monthly increase of 0.2% and falls below the anticipated 0.1% decline.
These findings align with the recent Consumer Price Index (CPI) report for May, which revealed lower-than-expected inflation levels. These combined reports reinforce the market’s belief that the Federal Reserve (Fed) may be approaching the end of its interest rate hike cycle.
The softer PPI report suggests that the costs of inputs, including raw materials and manufacturing components, are not rising as quickly as anticipated. This is good news for Nike, as it helps alleviate cost pressures in the production of their athletic footwear and apparel.
Lower input costs have the potential to contribute to improved profit margins and overall profitability for the company.
NKE has recorded a 52-week high of $131.31 and a 52-week low of $82.22, according to data from Benzinga Pro.
