Nike’s stock is having its worst day in 26 years, and would cut more than 100 points off the Dow’s price

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. OF,
-11.83%
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,
-0.05%
and the S&P 500
SPX,
+0.17%
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%.



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