The Dow Jones Industrial Average fell on Friday and is set to close out September with sizable losses. Dow component Nike got crushed after reporting a massive inventory buildup, falling more than 12%.
Dow Jones Lower While Nasdaq Holds Gain
The Dow was down 0.3% in early afternoon trading while the S&P 500 has shed 0.2%. The tech-heavy Nasdaq attempted to regain its footing, booking a 0.4% gain, while the Russell 2000 led the upside with a 1.3% gain.
Volume is lower on the NYSE and on the Nasdaq vs. the same time on Thursday.
Crude oil traded at $79.18 per barrel, down more than 1.5%. Most of the 11 S&P 500 sectors gained ground early and faded badly during the session.
The yield on the benchmark 10-year Treasury is off Wednesday's high of 3.97%, settling down to 3.74%.
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 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 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. Nike shares recently found resistance at their 50-day moving average and are currently trading below this area.
Elsewhere, Boeing and Disney were among Dow downside leaders, falling 1.4% and 0.8%, respectively. On the upside, Dow Jones tech giants Microsoft and Salesforce.com both pared early gains to break even.
IBD 50 Stocks To Watch
The IBD 50 ETF rose 1.0%and is up over 3% for the week, unlike the major indexes.
Stocks leading the downside included energy names Occidental Petroleum and ConocoPhillips. Devon Energy and Talos Energy also posted sizable losses.
On the upside, solar energy stock Shoals Tech Group and fiber-optics leader Clearfield led with gains of more than 4.5% apiece.
Finally, building products maker PGT Innovations rallied over 4.5% as shares form a consolidation with a 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 and is attempting to regain this area. Shares are still 9% below the proper entry point.
