The Dow Jones Industrial Average decreased by more than 200 points, or 0.5%, in afternoon trading on Friday due to an earnings sell-off of Nike stock. Tesla stock also recovered slightly from lows in today’s stock market as negative headlines emerged from China.
Nike (NKE) saw a nearly 8% drop despite reporting a 24% increase in adjusted profit and flat revenue at $12.4 billion. The company acknowledged challenges with its direct-to-consumer strategy and losing share in the running category. Tesla (TSLA) experienced a more than 2% decline as reports indicated a reduction in production at its Shanghai factory due to weakening demand.
On the other hand, Lululemon (LULU) tumbled over 16% despite reporting a 20% increase in quarterly profit and a 16% revenue rise. The company warned of softening demand in North America, causing its stock price to fall below its 200-day moving average.
Apple (AAPL) saw a reversal in the Dow Jones after a previous sell-off, following negative sentiment due to a Department of Justice lawsuit alleging an iPhone monopoly. The Russell 2000 small-cap index dropped 1.1% after two days of gains, while the Nasdaq composite and S&P 500 experienced less selling pressure.
FedEx (FDX) was the top gainer in the S&P 500 due to a successful earnings report and news of a $5 billion share buyback program. Reddit (RDDT) fell 10% intraday but recovered slightly after a strong debut.
In terms of stock movement, Google parent Alphabet (GOOGL) outperformed with nearly 2% gains. Bitcoin-related stocks lagged as bitcoin experienced a 3% decline, with MicroStrategy (MSTR) and Coinbase (COIN) seeing mixed movement.
Arm showed strength and support in the chip space, with potential for a new base formation. Monitoring market trends and key indicators, such as distribution days, is crucial for predicting potential market pullbacks.
