Nike Inc NKE:NYSE

Last Price$109.37NYSE Previous Close - Last Trade as of 7:00PM ET 5/18/22

Today's Change-6.53(5.63%)
Bid (Size)$107.11 (1)
Ask (Size)$108.50 (1)
Day Low / High$108.78 - 113.36
Volume989.00

Equities Slump Midday With Technology Selloff

1:34PM ET 1/10/2022 MT Newswires
US stocks slumped midday Monday, extending declines from last week, as the velocity of a recent surge in government bond yields unnerved investors.

The Nasdaq Composite sank 1.9% to 14,648.53, with the S&P 500 down 1.4% and the Dow Jones Industrial Average 1.1% lower.

All sectors were in the red. Technology and consumer discretionary -- home to some of the fastest-growing companies in the US -- not only led decliners but were also among the worst performers last week.

The 10-year US Treasury yield was up less than one basis point to 1.77% after touching 1.81% earlier in the session, its highest intraday level since January 2020.

The 10-year yield, which ended last year at 1.52%, surged to about 1.76% by the end of last week, a 24 basis-point jump in just five days.

"The speed of rate moves matters for equity returns," Goldman analysts, including David Kostin, said in a research note. "Equities typically struggle when the five-day or one-month change in nominal or real rates is greater than two standard deviations. The magnitude of the recent yield backup qualifies as a two-plus standard deviation event in both cases."

West Texas Intermediate crude oil dropped $0.95 to $77.95 a barrel.

In company news, Moderna (MRNA) said advanced purchase agreements for 2022 delivery rose to $18.5 billion, up from $17 billion previously. Shares of the vaccine maker, whose product sales for 2021 hit $17.5 billion, surged 9.2% intraday, the most on S&P 500 and Nasdaq.

Take-Two Interactive Software (TTWO) said it struck a deal to acquire Zynga (ZNGA) for $9.86 per share in a cash-and-stock deal that values the mobile game developer at $12.7 billion. Shares of Take-Two Interactive plummeted 13% intraday, the worst performer on Nasdaq.

HSBC downgraded Nike (NKE) to hold from buy, with a price target of $182 per share.

Wedbush said in a research note Adidas sub-brand Yeezy drove the increase in product launches during the holiday-selling period as it offered 11 new products last month. In contrast, Nike missed that pace year on year. Nike's shares dropped 5.2% intraday, the steepest decliner on the Dow.

Gold was up less than 0.1% to $1,798.95, silver was up 0.4% to $22.44 an ounce, and copper was down 1.3% to $4.35 per pound in metals markets trading.