Nike reported fourth-quarter profits that beat analysts’ expectations, but sales and first-quarter guidance fell short of expectations, sending the sports apparel maker’s shares down 20 percent. Footwear sales in North America, Nike’s largest market, fell 6 percent year-over-year in the fourth quarter. Consumer demand also weakened in China. The company now expects first-quarter sales to fall about 10 percent year-over-year, while analysts had expected a decline of about 3 percent. Nike also said it expects full-year sales to be down in the mid-single digits.
Shares of shoe retailer Foot Locker fell 2.4%.
Drugstore chain Walgreens Boots Alliance Inc. fell 0.8%, a day after the company announced plans that could result in the closure of thousands of underperforming stores and cut its full-year profit outlook, sending its shares tumbling 22%, its biggest percentage drop on record, according to Dow Jones Market Data.
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Walgreens is also in danger of being removed from the Nasdaq 100 index.
Dow Jones Industrial Average
Supermicro Computers is most likely to replace it in February
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Shares fell 8% to $819.35 on Friday. Supermicro is up 188% this year. Andrew Bury Barons He noted that Supermicro, which has a market capitalization of $52 billion, is one of the most discussed candidates for addition to the Nasdaq 100, which comprises the largest non-financial companies listed on the Nasdaq exchange.
Trump Media Technology Group Inc. fell 11% after rising in pre-market trading following the first presidential debate on Thursday night. According to the market, President Joe Biden struggled in the debate, which sparked speculation about whether another candidate would replace Biden as the Democratic nominee. Neither Biden nor former President Donald Trump offered specifics on the economy or curbing inflation.
Infinera shares rose 16 percent to $6.09 after Finland’s Nokia agreed to buy the optical communications equipment maker for $2.3 billion. The deal gives Infinera a price of $6.65 a share, a 28 percent premium to Wednesday’s closing price of $5.26.
Accolade fell 44% after its second-quarter and full-year earnings outlook fell short of analysts’ expectations.
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The medical technology company said it expects second-quarter sales of $104 million to $106 million and an adjusted EBITDA loss of $8 million to $10 million, wider than its forecast of a loss of $5.9 million.
Synchrony Financial rose 6.7% to $47.19 after Baird analysts initiated the financial services company’s stock with an outperform rating and a price target of $56. The analysts called Synchrony a No. 1 Rank.
“A national private label credit card platform with longstanding partnerships with major retailers and an experienced management team.”
Humana was initiated at Piper Sandler with an Overweight rating and a $392 price target.
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The health insurer’s shares rose 3.2 percent to $373.65.
Kura Sushi
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The stock fell 23% after the company issued third-quarter and full-year earnings guidance that fell short of analysts’ expectations.
Contact Joe Woelfel at joseph.woelfel@barrons.com.
