Athletic apparel giant Nike (NKE) received a much-needed reprieve when broader economic data finally turned positive for the enterprise. As AP reported, Americans opened their wallets, boosting their spending at retailers in July by the most in a year-and-a-half period. This surprisingly positive data point suggested that the economy may be more robust than previously assumed.
The move represented a clear picture of contrasts against what occurred earlier this month, when the CBOE Volatility Index – also known as the VIX or the fear indicator – shot up to multi-year highs. Unfortunately, the sudden shift toward bearish sentiment caught many traders off guard, resulting in a severe selloff. However, the pain in NKE started a month earlier.
