Stocks on Wall Street slid in a session on Friday to end another losing week amid the ongoing sell-off of major tech stocks.
All three major US indices dropped sharply this week. It fell 4.1% to record its largest weekly drop since March. The worst week-long performance since June, down 2.5%, while down 1.7%.
S&P 500, NASDAQ, Dow Daily
As we enter a new week, let's go & # 39; I'll highlight one stock to show underlying strength as you navigate the whip saw market and one on track to see further losses. NYSE 🙂 has been a strong player in the retail space in recent months, with stocks returning 96% from their March low, largely due to the rapid growth in digital sales amid the ongoing coronavirus pandemic.
Shares of Beaverton, Oregon-based sportswear and sneaker housing have shown robust relative strength during the recent technology-driven sell-off, with shares surging at $ 118.00 at close of trading on Friday. The stock hit a new record high of $ 119.25 earlier in the session, putting it at a valuation of approximately $ 184 billion.
Nike, that and its first quarter sales estimates, is expected to report second quarter results on Tuesday, September 22 after the close of clock
By consensus estimates, & # 39; the world's top sportswear and footwear manufacturer posted earnings per share of $ 0.39, an improvement from a loss of $ 0.51 per share in the last quarter. Meanwhile, sales are expected to grow nearly 40% quarter-on-quarter to $ 8.82 billion.
Perhaps more importantly, Wall Street will pay close attention to the expansion in Nike & # 39; s e-commerce numbers, which boomed from a record 75% in the previous quarter.
The company's update on the outlook for the remainder of the year and beyond will also attract attention as Nike did not provide a full year 2021 outlook for the last quarter. CFO Matthew Friend said at the post-earnings Q1 conference call that he expected gradual stabilization worldwide as "retails reopen and every market normalizes supply and demand."
Nike & # 39; s stocks should continue to offer strong upside potential over the next week as investors position themselves for a better than expected earnings report later this month.
Nikola: Fraud Allegations Weigh
On the other hand, in stark contrast to Nike's strong weekly performance, Nikola's (NASDAQ 🙂 – plummeted – share late last week after a damning report from a short-selling investment firm that accused the electric truck startup of being a 'fraud'.
Nikola & # 39; s shares lost 14.5% on Friday, ending at their lowest level since July 31. down 65% from its high of $ 93.99 on June 9, it ended the week at $ 32.13, giving it a market cap of about $ 17.4 billion.
Hindenburg Research on September 10 claimed that Nikola founder and executive chairman Trevor Milton made a series of false claims about owning proprietary technology to partner with major car manufacturers.
The Phoenix-based EV startup, in which General Motors (NYSE 🙂 recently took an 11% stake, warned Friday that it could take legal action against the short-seller.
“For the record, this was not a research report and it is not accurate. This was a short-term profit job driven by greed, ”Nikola said in a statement.
"We have nothing to hide and we will refute these charges."
On Friday, Hindenburg founder Nathan Anderson replied that his firm would welcome a lawsuit by Nikola and said:
"The company did not answer any of the 53 questions we asked in our report after promising a full rebuttal."
Chief Financial Officer Kim Brady said that Nikola – whose planned products include his debut hydrogen fuel cell electric pickup truck called the Badger, as a series of large electric trucks powered by zero-emission battery electric or hydrogen – electrical systems – will provide a detailed public response to the short-seller report at some point this week. issues.