World Cup: Adidas vs. Nike–Who Will The Winner Be?

  • August 3, 2005
  • Brice Wightman

After making four-year highs yesterday, stocks are
consolidating mid-session.

Adidas-Salomon is buying Reebok
(
RBK |
Quote |
Chart |
News |
PowerRating) in an $59 all-cash
deal. The transaction is expected to be completed in the first half of 2006.
Competition with Nike in the World Cup arena. Adidas has put together a 100-man
team to plan for the event, and will unveil a tournament ball and roll out
further merchandising later this year.

Time Warner
(
TWX |
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PowerRating) missed estimates and swung to a Q2 loss light on
revenues The company announced a $5 billion stock buyback program. The company
had set aside $3 billion to settle AOL accounting lawsuits.

Cigna
(
CI |
Quote |
Chart |
News |
PowerRating) beat by 0.43; earnings rose 43% from a year ago.

Strong sectors are: Gold
(
$XAU.X |
Quote |
Chart |
News |
PowerRating) +2.45%  
Utilities
(
$UTY.X |
Quote |
Chart |
News |
PowerRating) +2.16%   Healthcare
(
$HMO.X |
Quote |
Chart |
News |
PowerRating) +0.92%

Weak sectors are:  Airlines

(
$XAL.X |
Quote |
Chart |
News |
PowerRating) -1.74%

Dow -13.45 10,670.29
Nasdaq -4.69 2213.46
S&P 500 -0.52 1243.60

Stocks in the news:

Analog Devices
(
ADI |
Quote |
Chart |
News |
PowerRating) warned that Q3 revenues will fall short of prior
estimates; the company cited a decline in chipset sales to wireless handset
customers.


Netease
(
NTES |
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Chart |
News |
PowerRating) beat
by 0.17. Piper Jaffray raised its price target to $90 from $65.

UT Starcom
(
UTSI |
Quote |
Chart |
News |
PowerRating) missed by 0.12.

Borland
(
BORL |
Quote |
Chart |
News |
PowerRating) reported a much wider than expected loss of -0.23. The
Street was looking for  a loss of 0.02.

Brocade [BRCD|BRCD} warned for Q2.

Dominion
(
D |
Quote |
Chart |
News |
PowerRating) beat by 0.18, ex-items.

Brice Wightman