Sep 4, 2018

Go deeper: Why some Nike analysts are staying silent

Photo: Getty Images

Nike shares fell more than 3% on Tuesday after the company announced a new ad campaign featuring Colin Kaepernick — the first NFL player to kneel during the national anthem.

Why it matters: It's the type of news that analysts would typically write research reports on, especially given the stock reaction, but Axios could find only one major investment firm that issued a client note specifically on this topic.

  • Sam Poser, an apparel and footwear industry analyst for Susquehanna Financial Group, emailed to say he was "making no comments" on this topic.
  • Another analyst told us that writing about Nike and Kaepernick has no "upside," referring to how politically divisive the kneeling debate has become.
  • A spokesperson at Morgan Stanley said the firm did not publish a note on Nike. Analysts at Citi and Guggenheim did not respond to Axios' requests for comment.

Analysts usually write client notes after an event that could have either short-term or long-term impacts on stocks within their coverage area. The Nike news falls within that category, based on both market and social media reactions.

Bottom line: The one analyst who did provide research on Nike's ad campaign, Oppenheimer's Brian Nagel, wrote: "The power of the messaging from this new broader campaign is apt to overshadow any potential backlash, near term, in our view."

Editor's note: This post has been updated to reflect comment from Morgan Stanley.

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What we're seeing: Military police and park rangers used physical force and tear gas on peaceful protestors to clear the area so that Trump could "pay respects" to the church that was damaged by a fire on Sunday.

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President Trump announced from the White House Rose Garden Monday evening that he is "mobilizing all available federal resources, civilian and military" to stop violent protests across the country, decrying "professional anarchists, looters, criminals, antifa and others" whose actions have "gripped" the nation.

The backdrop: Trump's announcement came as police clashed with protesters just outside of the White House, using tear gas and rubber bullets to disperse crowds chanting, "Hands up, don't shoot," and other slogans. Flash bangs used outside the White House could be heard from the Rose Garden.

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Autopsies say George Floyd's death was homicide

Police watch as demonstrators block a roadway while protesting the death of George Floyd in Miami. Photo: Joe Raedle/Getty Images

Preliminary results from an independent autopsy commissioned by George Floyd's family found that his death in the custody of Minneapolis police officer Derek Chauvin was "homicide caused by asphyxia due to neck and back compression that led to a lack of blood flow to the brain," according to a statement from the family's attorney.

The latest: An updated official autopsy released by the Hennepin County medical examiner also determined that the manner of Floyd's death was "homicide," ruling it was caused by "cardiopulmonary arrest complicating law enforcement subdued, restraint, and neck compression."