The Dow Jones Industrial Average fell at Friday’s opening bell and is set to close out September with sizable losses. Dow component Nike (NKE) got crushed after reporting a massive inventory buildup, falling 11%.
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Dow Jones Opens Lower While Nasdaq Holds Gain
The Dow was down 0.2% in the first hour while the S&P 500 reversed higher, lifting to break-even after posting heavy losses on Thursday. The tech-heavy Nasdaq attempted to regain its footing, booking 0.3% gains, while the Russell 2000 matched that performance.
Volume is lower on the NYSE and on the Nasdaq, compared to the same time on Thursday.
Crude oil traded at $80.30 per barrel, down 1.1%. While all 11 S&P 500 sectors lost ground, the Energy Select Sector SPDR (XLE) pushed toward break-even. Meanwhile, the SPDR Utilities ETF (XLU) led the downside, posting 4% losses.
The yield on the benchmark 10-year Treasury is off Wednesday’s high of 3.97%, settling down to 3.72%.
For the month of September, the S&P 500 is set to close down roughly 8%, while the Dow Jones is on track for a 7% monthly loss. The Nasdaq is faring the best among major benchmarks, with a loss of “just” 3%.
The S&P 500 closed Thursday with a 2.1% decline, representing the 49th decline of 1% or more so far in 2022. That’s the most downside volatility since 2009.
The Federal Reserve’s preferred inflation measure, the personal consumption expenditure price index, rose 0.3% in August, marking a 6.2% year-over-year increase. Both numbers were hotter than expected.
The index tracks the change in prices of goods and services purchased by consumers throughout the economy.
In other reports, personal income rose 0.3% in August, in line with Econoday estimates.
Dow Jones Stocks To Watch
Nike (NKE) reported a 44% jump in global inventory after Thursday’s close, up 65% in North America, and warned about further macroeconomic headwinds.
Q1 2023 revenue rose 4% to $12.69 billion, beating estimates. Earnings also beat slightly, at 93 cents per share, representing a 20% year-over-year decrease.
The sports apparel giant also reported declining sales in Greater China, its third biggest market by revenue.
Shares plunged 13% in the first hour, even though Nike reaffirmed its fiscal-year sales outlook.
The widely-held stock is down over 43% for the year as it enters the last trading day of the third quarter. Shares recently found resistance at their 50-day moving average and are currently trading below this area.
Elsewhere, Boeing (BA) and Disney (DIS) were among Dow downside leaders, each falling 1.5%. On the upside, Dow Jones tech giants Microsoft (MSFT) and Salesforce.com (CRM) both held 0.6% gains.
IBD 50 Stocks To Watch
The IBD 50 ETF (FFTY) lost 0.5% early Friday but is up over 1% for the week, unlike the major indexes.
Stocks leading the downside included energy-related names Occidental Petroleum (OXY) and ConocoPhillips (COP), both down over 2%. Devon Energy (DVN) and Talos Energy (TALO) also posted sizable losses.
On the upside, solar energy stock Shoals Tech Group (SHLS) and fiber-optics leader Clearfield (CLFD) led with gains of over 2%.
Finally, building products maker PGT Innovations (PGTI) rallied over 2% as shares form a consolidation with 23.46 buy point.
The relative strength line has reached a new high but the stock remains below its 50-day line at this time. Shares are still 11% below the proper entry point.
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Dow Jones Opens Lower, On Track For Steep Monthly Losses; Nike Plummets On Earnings
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