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Last Call: Nike Misses Earnings

“The future ain’t what it use to be.”

-Yogi Berra

Below – the usually reliable Nike misses earnings.

Market Musings With CNBC Market Guru Robert Hum

  • Optimism on progress at EU Summit leads to wild afternoon for stocks — Dow was down 176 late in afternoon before rallying significantly and closing down just 24 points
  • Health care stocks split after Supreme Court’s healthcare decision
  • Commodities settle broadly lower: crude oil at 9-month low, silver at 19-month low, gold at 1-month low

The Word on the Street Tonight

RIM MISSES BIG WITH LOSS OF 37 CENTS A SHARE; STOCK PLUNGES/CNBC.com w/ Wires: “Research In Motion reported a much bigger quarterly loss than expected Thursday and delivered revenue that fell short of Wall Street's expectations. The BlackBerry maker also said it would cut 5,000 jobs as smartphone shipments fell sharply. Following the earnings announcement, the BlackBerry maker's shares dropped sharply after earlier being halted ahead of the report.”

FORD SAYS OVERSEAS LOSSES WILL TRIPLE IN 2ND QUARTER/NY Times – Bill Vlasic: “The Ford Motor Company’s chief financial officer said Thursday that the automaker’s international losses would triple in the second quarter, primarily because of much weaker European sales.”

NIKE STOCK SKIDS OVER 10% AFTER EARNINGS/AP: “Nike delivered a rare miss on earnings as its margins took a hit from higher raw-material costs and a restructuring charge. … It was a rare miss for the world's largest athletic shoe and clothing company, which has beat analyst expectations in 17 of the past 18 quarters. It comes as a number of companies are warning that slowing results in Europe and China are weighing on earnings.”

UTX UNDER FIRE FOR HELPING CHINA DEVELOP ATTACK HELICOPTER/Reuters: “United Technologies and two of its subsidiaries sold China software enabling Chinese authorities to develop and produce their first modern military attack helicopter, U.S. authorities said on Thursday.”

PERFUME MAKER COTY NEARS IPO/WSJ – Emily Glazer & Telis Demos: “Perfume maker Coty Inc. will file for an initial public offering of stock as early as this week, people familiar with the matter said, firming up its strategic direction after dropping a $10.7 billion attempt to acquire larger rival Avon Products Inc. last month. The offering could raise as much as $1 billion and could value the company at more than $7 billion, one of the people said.”

CORPORATE PROFITS FALL FOR FIRST TIME SINCE RECESSION/NY Times: Catherine Rampell: “Corporate profits declined last quarter, ticking down by $6.4 billion or 0.3 percent in seasonally adjusted annual terms. A small decline, yes, but it was also the first decline since the fourth quarter of 2008, when the great recession was still raging. Given the cushion of cash that companies accumulated in the last three years, last quarter’s decline probably didn’t break the bank for too many companies. However, it will probably make companies even more fearful about expanding.”

OIL HEADS FOR WORST QUARTER SINCE 2008 CRISIS/Reuters – Gene Ramos: “Crude oil futures fell as much as 3 percent on Thursday, and are on track for the worst quarterly performance since the 2008 financial debacle, on worries that an EU summit will not find durable solutions to the euro zone crisis, stifling global growth prospects. Lower U.S. equities following the U.S. Supreme Court decision upholding key elements of President Barack Obama's healthcare reform law added to the day's pressures on crude futures.”

APPLE'S SENIOR HARDWARE CHIEF BOB MANSFIELD TO RETIRE/CNET-Josh Lowensohn: “Apple's senior vice president of hardware engineering Bob Mansfield is retiring, the company said today. Mansfield, who has been with Apple since 1999, will be replaced by Dan Riccio, Apple's current vice president of iPad hardware engineering.”

INSIDE MURDOCH'S DECISION/WSJ – Merissa Marr & Christopher Stewart: “Rupert Murdoch long resisted any suggestion—be it from bankers or executives within News Corp. —that the media conglomerate spin off the company's newspaper assets, which had become a drag on the stock. "I was hanging on, and so was the whole family," the 81-year-old Mr. Murdoch said in an interview Thursday. "We were very emotional about it...I went through lots of ups and downs." This week, Mr. Murdoch relented, agreeing to divide up his empire, a company he built from a single newspaper he inherited in Australia in the 1950s to a conglomerate with more than $33 billion in revenue and a market capitalization of $53 billion. But he still doesn't care about the so-called Murdoch Discount that has long hovered over the company's share price."

PROSECUTORS PRESS ON IN MADOFF PONZI PROBE/WSJ – Chad Bray & Michael Rothfeld: “The 3½-year-old federal investigation of the Madoff Ponzi scheme is taking a new direction amid the expected guilty plea Friday of Bernard Madoff's younger brother, Peter. Prosecutors now are expected to shift their focus to Shana Madoff, Peter Madoff's daughter, according to people familiar with the investigation. Shana Madoff, who now goes by her married name, Shana Swanson, served as the firm's in-house counsel and compliance director.”

FRANCE'S STRAUSS-KAHN, WIFE HAVE SEPARATED: MEDIA/Reuters: “Disgraced former IMF chief Dominique Strauss-Kahn and his wife have separated, as his legal battles run on over a New York sex assault case and his alleged involvement with a prostitution ring, weekly magazine Closer reported on Thursday. Anne Sinclair, a wealthy heiress who recently relaunched her media career as a news editor at the Huffington Post's French edition, threw Strauss-Kahn out of their home in central Paris a month ago and the two are living separately, the magazine said.”

Economic Data

830 May Personal Income

830 May Consumer Spending

830 May Core PCE Prices

945 Jun Chicago PMI

955 (Jun final) Consumer Sentiment

Earnings

Before the bell:

Constellation Brands, KB Home, Finish Line

Key Guests

Sen. Chris Coons, D-DE (610a)

Kelly King, BB&T Corporation CEO (700a)

Terry McAuliffe, Green Tech Auto CEO (715a)

Jeb Hensarling, R-TX (740a)

Mohamed El-Erian, PIMCO (830a)

Jack Gerard, American Petroleum Institute CEO (835a)

Governor Dan Malloy, D-CT (840a)

Frank Slootman, ServiceNow CEO (945a)

Micky Arison, Carnival Cruise CEO (1100a)

Whitey Bluestein, Bluestein Associates (1200p)

Tyler Vernon, Biltmore Capital Chief Investment Officer (200p)

Alan Greenspan, Greenspan Associates (410p)

Eric Schmidt, Google CEO (430p)

John Hofmeister, Citizens for Affordable Energy CEO (700p)

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