Nike Inc NKE shares are trading higher by 4.96% to $112.07 Wednesday morning. The stock is rising after the Producer Price Index (PPI) for final demand slumped 0.3% month-on-month in May, down from the previous 0.2% monthly increase and below the expected 0.1% fall.
The PPI print follows the May consumer price index (CPI) reading, which came in lower than expected, supporting market belief that the Fed is nearing the end of its interest rate hike cycle.
A softer PPI report indicates that the prices of inputs, such as raw materials and manufacturing components, are not increasing as rapidly as anticipated. This can help alleviate cost pressures for Nike in the production of its athletic footwear and apparel.
Lower input costs can contribute to improved profit margins and overall profitability.
See Also: Deflation Pushes Producer Prices To 28-Month Lows Ahead Of Fed's Interest Rate Decision
According to data from Benzinga Pro, NKE has a 52-week high of $131.31 and a 52-week low of $82.22.
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