Nike’s stock is having its worst day in 26 years, and would cut more than 100 points off the Dow’s price
Shares of Nike Inc.
NKE,
plunged 12.9% toward a one-month low in premarket trading Friday on the back of a disappointing earnings report, as they head for the biggest one-day selloff in 26 years. The athletic apparel and accessories giant’s stock was the biggest decliner among Dow Jones Industrial Average
DJIA,
and the S&P 500
SPX,
trading ahead of the open. The stock’s implied price decline would shave about 104 points off the Dow’s price, while Dow futures shed 106 points, or 0.3%. The stock was in danger of the biggest one-day decline since it sank 13.5% on May 29, 1997. Stifel analyst Jim Duffy kept his rating on the stock at buy but trimmed his price target to $129 from $135, saying “uninspiring” sales trends are concerning. “The NIKE model remains enviable but lower growth and lower estimates weigh on valuation,” Duffy wrote in a note to clients. The stock had gained 4.7% year to date through Thursday, while the Dow had rallied 12.8%.
