Consumer sentiment has also continued to deteriorate given persistently high inflation in the United States. This also led to a drop in stock market prices. Nike had one of the biggest losses in the Dow Jones, the company is struggling with major problems, especially in China.
The Dow Jones turned 1.55% into the red and ended the trading day at 30,951 points. The S&P 500 closed down 1.90% at 3,826 points. The Nasdaq 100 fell the most with -2.77% to 11,676 points.
Nike shares fall after quarterly results
Sportswear manufacturer Nike presented results for the fourth quarter of fiscal 2022 after the market closed on June 27, 2022. Revenue for the period was $12.2 billion, compared to $12.3 billion for the same period last year. Earnings fell 3% to $5.5 billion. Earnings per share were $0.91. The stock slipped 6.91% on the smaller numbers.
The Adidas rival is struggling, especially in the key sales market of China. Sales here fell by 20%. Corona measures are causing problems for Nike in the Middle Kingdom, lockdowns are damaging business. But they are also putting international supply chains under pressure. Goods made in China cannot be shipped to the US at normal levels, where sales have fallen by 5%.
Qualcomm succeeds in court
The semiconductor manufacturer Qualcomm and the iPhone group Apple have been at odds for years. Notably, Qualcomm sees Apple infringing on its patent rights, and in 2019 the dispute was settled with a settlement that may have cost Apple billions of dollars. To avoid future lawsuits, Apple sought to invalidate two Qualcomm patents – but failed in the US Supreme Court. The news sent Qualcomm shares up 3.48%, while Apple fell 2.98%.
Chevron (+1.69%) topped the Dow Jones again on Tuesday, and oil stocks were also a major contributor to the S&P 500. Occidental Petroleum was up 4.76% and Diamondback Energy was up 4.35%. Etsy was down, with the stock down 8.20%.
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