Soccer team. Dow component nike. After the market closed the sneaker and Apparel Company jumped 5 and three Cents Per Share more than analyst estimates. Revenues came in better than expected and thats thanks to Strong Demand in the u. S. And several international markets. And news that worldwide orders were up 12 lifted shares in after hours trading. Sarah eisen has more on what is next for nike. Reporter for nike investors there are three areas to watch, big sporting events like the world cup, china and technology. Nike shares have fallen almost 3 many making them one of the losers in the dow in an up year so what are investors looking for to turn it around . A payoff in soccer sales. Nike is spending big on world cup marketing. The world cup is a big boost in sales in terms of performance product and also sportswear or lifestyle product. Were seeing the football category continue to grow. Were the number one Football Company in the world. Our market share in foot ware is tops in every country around the world, and we feel that with the invasion that were introducing around this world cup, thats only going to get stronger and stronger. Reporter this year nike is sponsoring ten teams in the world cup including marketable teams like the u. S. And brazil. Soccer, though less than 10 of total nike sales is growing fast thanks to growing interest in soccer in the United States. But for nike, its not just about its home market. Investors are also paying close attention to nike footwear and apparel sales in china. Unlike fast growing competitors, nike gets most of the sales outside the United States. And china is the key growth market. Nike has struggled there because of local competition, merchandising issues and a weaker economy but recently has been addressing the challenges and investors are looking for proof of a solid turn around. The other area of interest is technology. Nike has reportedly been scaling back the wrist band to focus on apps and software for tracking fitness. There is a bigamistry what nike has planned. Although shares are been under pressure, analysts says the tide is set to turn because of what he calls an exceptionally good product pipeline, including some upcoming sneaker releases next year. There is also word that viewer ratings and sales have been strong in brazil for the world cup. Adidas expecting record soccer sales for 2014. Adidas and nike controls most of the soccer market. That should bode well even if their sponsors end off facing off. For nightly business report. Im sarah eisen. Late news from dupont. Sharing dropping after it cut the Second Quarter and full year guidance citing lower than expected corn seed and sales and higher than expected write downs due to a high inventory of seeds. The stock was slightly lower in regular trade today. Well, it was another down day on wall street despite some encouraging economic news, job claims dipped lower and personal incomes both edged higher a little bit in may but some were disappointed it rose half as expected so they lowered the growth forecast for the Second Quarter. The dow lost 21 and the nasdaq fell by a fraction and s p off by two points. Now wall street was buzzing about provocative comments fm kevin warsh. He described the policies of benefitting the rich at the expense of the poor. If you have access to credit, the youve got a big balance sheet, the fed made you richer. So i would say this has been in some sense reverse robin hood. This is a way to make the well to do even more well to do because thats what the Federal Reserve can do. And warst suggested raising the benchmark. So is kevin warsh right . We have different views and senior economist at pnc. Brian west berry disagrees. Welcome. Gus, why do you agree . Why is this a reverse robin hood situation here . Well, the fed policies certainly are making the well off wealthier. We seen big gains in stock prices and home values and those have benefitted wealthy households, but thats a side effect. Thats not the goal. Thats not what the fed is trying to do. They are trying to support Economic Growth that benefits everyone and the side effect is to make households wealthier. Brian, your turn, make the case. First of all, if you borrow a lot of money with low Interest Rates that the fed is providing or if youre going to benefit more than if you lend money, right, with low Interest Rates. So if you want to try to separate the high income and low income but how much, whether they borrow or lend, you might be able to make that case. I dont believe that quantitative easing and low Interest Rates and fed activity is why the stock market is up. You know, you just reported nike or think of apple. I mean, these companies are making new products. They are selling them. They are helping their customers. Its not because of what the fed is doing, and those companies that are doing this, are getting wealthy, and so to blame it all on the fed, i just think is a mistake. Gus, what about there might be those who would argue that fiscal policy, tax policy out of washington has as much to do with that as separation of the wealthy from the middle class these days as Monetary Policy . Absolutely. Its not just a Monetary Policy story. Certainly what is going on with taxes, what is going on with spending, we seen benefit cuts, spending cuts at the federal level hurt low and middle income households. Thats part of the story. The Federal Reserve played a role, not deliberately, not trying to benefit the wealthy but getting Economic Growth started. I want to talk about investment approaches. If low Interest Rates have been good for the stock market and if youre an investor, whether its your mutual fund or pension fund or 401 k, you benefitted. Isnt that a good thing . It is. There is a couple of points here i would like to make. Number one, its not low Interest Rates boosting stocks, earnings are boosting stocks. Were at record corporate earnings right now. Our companies in the United States have never made this much money, and they are making this much money because they are more productive, more efficient, we have fracking, 3 d printing, roboti robotics, the cloud, smart phone, tablet, apps, all of these things are making us more productive, more efficient, more profitable. Thats why stocks are up. Not because of what the fed is doing, and my second point to go to what we just heard, the government has not cut spending. Its not cut redistribution to individuals. To say that is just not true. In fact, i believe the bigger the government is, the more taxes we have the more we try to help people the worse we make the middle class. All right. Well lets reverse this then, gus. Lets say when Interest Rates start to rise, does that then disproportionally hurt the wealthy that benefitted to this point . No, if Interest Rates are rising, the federal economy is doing better and can with stand higher Interest Rates. The Federal Reserve is trying to lift all boats. We want a stronger market, to see wage gains and jobs and if the fed is raising rates, thats a signal they think this is occurring. Its not a question who winds or loses, how do we all benefit from stronger Economic Growth . Gus, how do we fix this income inequality situation . How much time do you have . Thats a huge issue and obviously, we have the answers i wouldnt be here today. You know, there are a whole bunch of issues that need to be resolved but the question is, workers are more productive. Were absolutely right about that. The question is how do Workers Benefit from the productivity gains . Right now the gains are going primarily to holders of capital but we want to have an economy where pros par pros party is sh are you suggesting there isnt an income disparity in the United States right now . Oh, there is an income disparity. The question is where did it come from . My belief is that during times of tech thnology advance. Michael jordan made more inflation adjusted than babe ruth ever made. You can say they dominated the sports in equal fashion. Why did Michael Jordan make so much more than everybody else . Well, its because of tv. He was a Worldwide Sports star, and thats the same with technology. Microsoft sells their software to 6 billion people in the world, not just to 3 Million People in chicago, lets say. So as the Global Market opens up and as technology broadens things out, there will be people that benefit massively compared to the average. Let me ask real quickly from both of you, how long will it take for the middle class to feel good again . Maybe not as good as Michael Jordan but to feel better than the way the situation is now . Gus, you first. I think in about a year, i think well see contestant job growth and the Unemployment Rate continue to fall that will lead to a tighter labor market and households will feel better by next year. Brian . Sure, i wont disagree with that. I think households are feeling better today than they did a year ago or say three years ago. We can see it in Consumer Confidence data, but to really get back to the 80s, and 90s or 50s and 60s when most people felt good about the future. We have to cut the size of government. We cant have taxes this high and spending this high and ever hope to achieve that level of prosperity that we got used to in the 80s, and 90s. Good conversation, thank you. Thank you. When you think about big recreational vehicles, you think winnebago. Earnings topped wall street expectations and the ceo said Third Quarter revenues the strongest since 2005. Thats a dramatic change from a few years ago when consumers pulled back on big ticket purchases. Morgan brennan has more on when is driving winnebagos rebound. Reporter youve seen them at camp sites and maybe youve driven one on family vacation. Winnebago just reported quarterly earnings, showing the company is experiencing a come back. I think its another solid impressive quarter. The recovery in the u. S. Is well underway and has been for awhile after bottoming out during the crisis a few years back at around 13,000 units. Reporter the quarterly revenue was the highest since 2005, and earnings jumped nearly 50 . That thanks to increased demand for models less expensive and more family oriented. Rv retailers say despite the tough winter weather, more consumers are making these big ticket purchases. Activity is better than its ever been. Ive been selling winnebago for 28 years. They are opening new plants to accommodate the sales. Reporter baby boomers are the biggest buyers with ages 55 and over accounting for 60 of u. S. Motor home sales. Winnegabo is a smell cap stock but they watch with interest because motor homes are closely correlated with consumer conto dense, as well as the housing market. As the economy continues to recover and as long as the housing rebound takes course, companies could continue to see strong sales. Still, there are head winds to watch for, rising Interest Rates and rising gas prices. As motor homes may have all the comforts of home but lack in fuel efficiency. For nightly business report, im Morgan Brennan in lakewood, new jersey. Arts and crafts chain michaels is getting ready to return to wall street but there are things investors should keep in mind before digging into the stock. Well, its official, allibabba is headed to the new york stock exchange. The giant which is owned by ya hue has chosen to list shares under the Ticker Symbol baba. When it makes the trading debut this summer, it could be the Largest Technology ipo in u. S. History, even bigger than facebooks 15 billion initial public Stock Offering two years ago. In the meantime, investors dont have to wait too long to buy shares of michaels, thats the big arts and crafts chain expected to trade again tomorrow following eight years of private ownership. More on how michaels crafted its come back to the equities market and the challenges it faces. Reporter the nations largest arts and crafts retailer is sewing up the final retails. Its relisting tomorrow trading under the stock symbol mik after being taken private in 2006. In that time sales have grown 1 with a store base thats grown to more than 1142 stores today, plus, its profitable. When it comes to the product, makes a little over half of the sales come from crafts, home decor and Seasonal Items and framing and scrapbooking make up the rest. Its a Market Leader in the arts and crafts space out selling competitors, joann stores and hobby lobby. The platform and expanding store base are both expected to continue to contribute to increasing sales. Those following michaels progress say its a wellrun business but question how much growth there is in the arts and crafts retail sector. Crafts are back. Its starting to grow again and went through a period of growth, kind of retrenchment and growth again, but this company itself has to fight the battle with two tough coal pmpetitors. Reporter one of two retailers offering the rainbow loom. The success of the rainbow loom is the primary reason sales increased for the past fiscal year but there is concern the trend could ease. Other risks to michaels growth include a debt load and still unknown costs related to a data breach that took place over a period of nine months from june 2013 to february 2014. Its been a difficult year for retailers, and consumer related initial Public Offerings have been received with mixed results. Michaels Business Model is strong, it may keep investors on the sidelines. For nightly business report, im courtney region. Wall street got in on the action buying shares of go pro. Shares of the company that makes wearable cameras used by skydives and surfers surged. Go pro offered 18 million shares valuing the company at about 3 billion making it the biggest initial Public Offering of a Consumer Electronics company. Nick woodman says they are not just a fad. If go pro can make it easier than any company in the world, make it easier for our customers to share professional quality personal content, thats an opportunity thats never going to go away. And the stock jumped 30 to 31. 34. Now lennar posted earnings that beat the top and bottom line. The home builder sold more homes at higher prices with new orders and deliveries increasing. Its average saling price was higher due to a tighter supply of homes. But despite that good report, shares were off to 41. 32. Better than expected increase in revenues, the food company is forecasting a modest recovery in the private brands unit and expected that its healthier options will help the consumer brands. Shares rose to 28. 97. Spice maker mccormick saw revenue come in below forecast that sent shares lower. Seeing Stronger International performance because of the acquisition of an overseas maker. The stock fell more than 1 as a result of 70. 27. Alcoa is taking a plunge into the Aerospace Industry with announcing today the giant is spending more than 3 million to built the company. That deal will up the revenue by about 20 which ceo kline field says is good news. Shares popped on alcoa up more than 2. 5 to 14. 94. Shares of elizabeth ard oen plunged. Its days after a sweeping restructuring due to mounting losses. That stock fell 17 today to 22. 41. Reenrolling for a federal Health Care Plan next year got easier. The obama administrion will allow automatic renewals in the affordable Health Care Plan for 2015 for 95 of the people signed up in a federal exchange plan. Coming up on the program, just as germany beat the u. S. In the world cup match. Will General Electric be topped. The two industrial titans go headtohead next. In case you missed it, todays highly anticipated match ended with a 10 victory for the german team but despite the loss, the u. S. Was able to advance to the next round of 16 teams. In the next round of nbrs ultimate stock cup, we put two of the worlds biggest industrials against each other, namely we want to see who will come out of the Global Marketplace on top. Seamans or General Electric. Watch. Ges roots go back to thomas edison. His Edison ElectricLight Company merged with thompson Houston Electric to form General Electric in 189. Headquarters, fairfield, connecticut. 2013 revenue, just above 146 billion. Ge is the last of the original 12 companies in the Dow Jones Industrial average still listed. Long gone are the days known mostly for light bulbs. Ge makes trains, jet engines, power turbines and medical devices but the finance company, ge capital made up more than half the business. Ges german counter part siemens a Head Quarters in germany. 2013 revenues, more than 109 beside. Siemens and ge compete in many of the same fields but siemens is more of a Global Player that makes the rival to buy the french Power Company interesting. Its well connected to emerging markets like china and its the kind of company that can make ge more of an International Power house. Peter joins us with his play by play of ge and siemens. Hes manager of hunting ton funds. Youre saying that siemens is your choice in this competition . A bit of a contradiction there it is, susie. Siemnes has a clear road map. Were seeing world power grids and a need to improve the efficiencies of those grids. Siemens has 30 of the business overall is in that area. We have a well established footprint and they are well established in a number of outside of their domestic markets right now. That said, ge has been growing faster in those markets and so i can see why the deal made sense for siemens is an ability for them to jump started properduct. It makes sense but siemnes in daring do forced ge to accept terms on the deal that are going to make it much more complex to execute. Its going to bring a lot of other players in. This is why we think siemens is the stock to earn because its clear sailing ahead. They have a better revenue visibility going. For ge, there is a lot of execution risk and we think that will district the stock for awhile. Yeah, ge portrayed the victory as just that, a victory over siemens. Youre say thing is not a slam dunk, is it . No, its not. For anyone whose been in the stock for as long as we have, which is well over a decade now, the deal which was also supposed to be one that made huge sense for ge medical equipment has really been a bit of a disappointment and weve struggled every quarter with something that kept that from firing. If youre a ge shareholder, you get a little deja vu and you start to get nervous that weve heard this song before and you worry about, gee, whats my return going to be in the next ten years. So for investors, if they want to put new money in, youre saying put it into siemens. The stock is around 100. How much can they expect on the upside if they do that today . In the next 12 months, if everything goes as were forecasting, you can see a 10 run in siemens share price. That doesnt include a comparable dividend of 3 . So a fairly news return. The dollar is expensive relative to the eros so a good time to buy and we dont think in the next 12 months youll get that price performance. Too many investors will sit on the sidelines and not race to own it thanks a lot, peter. So you just heard our guest. He prefers siemens over ge. Who do you prefer on the global stage . Ge or siemens. Vote on nbr. Com. For the results from tuesdays global rivals challenge where we asked you to choose between mcdonalds and yum brands. Well, the winner is mcdonalds but it was close. 49 of you voted for yum. 51 for micky ds. Gm is recalling 29,000 chevy cruze vehicles. Gm told dealers to stop selling many of them. Thats it for nightly business report. Im bill griffeth, thanks for watching. Im susie gharib. Have a great evening, everybody. See you tomorrow. This is bbc world news america. Funding of this presentation is made possible by the freeman foundation. Newmans own foundation, giving all profits to charity and pursuing the common good for over 30 years kovler foundation. And union bank. 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