Scare Jordan? NKE Sees Largest Drop in 23 Years… Health Stocks Are Voting for Trump

Are healthcare stocks buying Biden’s golf handicap claim?

Can Nike recover from its largest drop in 23 years?

I'll tell you everything you need to know going into the weekend.

Here’s where today’s heatmap landed…

The S&P 500 and Nasdaq Composite each took a modest 0.3% and 0.4% slide, respectively, after teasing investors with a peek at new record highs earlier in the day. Meanwhile, the Dow Jones Industrial Average shed 133 points, or 0.3%.

May’s inflation numbers cooled to their slowest annual pace in over three years, with the core PCE index—a fancy way of saying prices minus food and energy—edging up just 0.1% last month and 2.6% from last year.

In the world of consumer feelings, June came in swinging, with sentiment climbing to 68.2 from a preliminary 65.6. This rise, paired with inflation behaving, sparked debates about whether the Fed might adjust rates in September. We can only hope right?

Now let’s look at what individual stocks did today:

• Nvidia (NVDA), inched up 0.1%, solidifying its position as the Silicon Valley sweetheart of 2024.

• Uber (UBER) and Lyft (LYFT) both cruised to gains of 4% and 5%, respectively, thanks to a legal settlement that finally cleared the road for their drivers.

• Trump Media & Technology Group (DJT) initially soared after the latest presidential debate, where Trump’s golf quote stole the spotlight. However, reality set in with a 2% slide by closing bell.

• Walgreens (WBA) played it cool, holding steady despite recent earnings woes and plans to close stores.

Biden’s Golf Gaffe Drives Medicare Stocks Up

Well, in case you bought the claim that Biden has a 6 handicap on the golf course… One sector definitely did not.

Medicare-related companies saw a surge after Biden showed he doesn’t have what it takes to win another 4 years in the white hours. Naturally, investors sensed a potential return for Trump.

This caused giants like UnitedHealth, Humana, and CVS Health to spike in price.

RBC analyst Ben Hendrix attributed Friday’s rally in Medicare Advantage stocks to the belief that "a second Trump term would ease regulatory and reimbursement challenges weighing on these healthcare leaders."

UnitedHealth and CVS were celebrating with gains over 2%, while Humana topped the charts with a solid 4% rise.

Despite these gains, 2024 has been rough: UnitedHealth is down 5%, Humana has already sank 18%, and CVS is 25% underwater year to date.

Stock.News Spikers of the Day

Jet.AI Inc.: [JTAIZ] [+37.52%]

Biolase, Inc.: [BIOL] [+239.42%]

Scare Jordan? Nike’s Stock Sees Largest Drop in 23 Years

All you sneakerheads might want to cover your eyes right now… because Nike just tripped harder than Biden did trying to say “covid” during the debate last night. 

(Source: Times Now)

The stock nosedived 19% on Friday after the swoosh squad announced that revenue is dropping more than your motivation on a Monday morning.

They’re predicting a mid-single-digit decline in 2025, starting with a bruising 10% drop in Q1. Guess they forgot to "just do it" when it came to making profits.

This tumble marks Nike's worst single-day fall since 2001, back when we were all dealing with frosted tips and listening to “Stan” with our Sony Walkmans.

The company reported Q4 revenue of $12.61 billion, missing the Wall Street estimate of $12.86 billion by a country mile. But in a twist more surprising than LeBron James drafting his son to the Lakers, Nike's earnings per share hit $0.99, beating the $0.66 expected. Mixed signals, much?

CEO John Donahoe tried to steady the ship by calling 2025 a "transition year." Transition to what, you ask? Maybe better revenue or fewer awkward earnings calls. Morningstar's David Swartz called the sales numbers “pretty weak,” which is analyst speak for “you had one job, Nike.”

(Source: Financial Times)

Morgan Stanley’s Alex Straton has effectively benched Nike, downgrading it and slashing the price target to $79 from $114. Talk about getting sent to the locker room. Nike’s been the tortoise in this race, lagging with a 17% drop over the past year compared to the S&P 500’s 26% sprint.

Nike’s management is skating on thin ice, desperately trying to fend off competition from Adidas and rising stars like Hoka (you know the shoes your father-in-law wears). CFO Matthew Friend sounded like he was trying to hype up his team, promising significant improvements by year-end. But let’s be real, it's like saying, “The ship is sinking, but we’ve got some nice lifeboats.”

If you ask Phil Knight, the founder and chairman of Nike, John Donahoe is handling things just fine.

(Source: Sports Illustrated)

“I've reviewed Nike’s future plans and I fully believe in them,” the 86-year-old said in a statement to CNBC. “I am optimistic about Nike’s future, and John Donahoe has my unwavering confidence and complete support.”

In the end, Nike’s in the penalty box, and this time it doesn’t look like hiring more sweatshops overseas is gonna help you out Phil. Maybe you should ask Michael Jordan how to stage a comeback… because unless something changes, you’re going to get swept.

Stock.News has positions in Uber.