Market Morning: Kaepernick to Nike for TD, China Tantrum, Teva Headache Abates, Macau Typhooned

Nike Feeds Off Trump Spite

Nike’s (NYSE:NKE) advertising campaign featuring Kneeler-In-Chief former NFL quarterback Colin Kaepernick continues to pay dividends, or in this case capital gains, to Nike shareholders, as shares continue to reach new highs. The risky move has paid off, probably from capitalizing on the wave of anti Trump sentiment, who singled out Kaepernick as unpatriotic and demanded that all NFL players who kneel during the Star Spangled Banner be fired. The advertising campaign arguably is referring to this demand offhandedly, since the tag line of the ad campaign to “believe in something even if it means sacrificing everything”, and Kaepernick is no longer an NFL quarterback. This is probably because he hasn’t played very well in recent years. In any case, Kaepernick is making a pretty penny off his kneel, selling out his #IMWITHKAP jersey on his personal website within hours, even though, in fidelity to the spelling of his last name, it should be #IMWITHKAEP. Coincidentally, he may be one of the few with a hairstyle on par with the oddity that is President Donald Trump’s mystifying hairdo.

China Throws Trade Tantrum, Walks Out On Talks

China doesn’t like the idea of additional tariffs on $200 billion worth of its exports to the United States. The additional tariffs will take effect before a scheduled meeting between the two countries’ trade representatives, which has been interpreted by Beijing as an attempt to squeeze them into submission before the talks take place. The Chinese have therefore threatened to back out of the meeting. Perhaps if the new tariffs were postponed pending the outcome of the meeting, Beijing would change its mind, but don’t count on that kind of move from Trump, who has been ruthless on the trade front, especially with China, since taking office.  It is estimated that Apple (NASDAQ:AAPL) would have to increase its iPhone prices by 20% if the next round of tariffs are implemented.

New Teva Migraine Drug Approved

Ajovy, then new drug from Teva Pharmaceuticals (NYSE:TEVA) won FDA approval at the end of last week, and the stock is up about 6% in the premarket. The generics giant is now up 122% since bottoming at $10.85 a share. Analysts expect $500M in sales within 4 years, and combined with a cost-cutting plan that appears to be working, could result in a turnaround for the embattled company that is still down 65% since topping just below $70 in 2015. CEO Kare Schultz has put a priority on paying down debt rather than increasing sales for the next two years.

Eyes On Macau in Super Typhoon Aftermath

Surfs up in Macau, literally, as the now flooded Chinese gambling Mecca was slammed by Typhoon Mangkhut and Chinese authorities closed casinos for the first time ever. Damage is estimated at about $186 million. Stocks to watch today in the aftermath are Wynn (NASDAQ:WYNN), Las Vegas Sands (NYSE:LVS), and Melco (NASDAQ:MLCO). Macau stocks are down on Chinese exchanges this morning and losses are likely to follow on ADRs. Gamblers were shut out for 33 hours, but appear to already be swimming back for more. The disruption is expected to cut Macau’s 3rd quarter growth by 7%.

Facebook To Fact-Check Memes, Expect Memes About This

In a bid to upset meme makers, Facebook (NASDAQ:FB) has decided to go after memes by checking photos or videos on which tye are based for information as to when and where the photo or video was taken, trying to excise manipulated, fabricated, or out-of-context content. Though admittedly, it is hard to spot a meme in which there is nothing out of context, since a meme is usually a few words and a purposely out-of-context picture or video. Following the new European Union copyright legislation that could put a serious damper on meme-production, we could see a severe shortage of memes develop, with unpredictable consequences. Duck and cover.

 

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