Stocks experienced a decline at the open as shares of Nike (NKE-6.95%), FedEx (FDX-8.89%), and Micron fell following disappointing earnings reports. The S&P 500 and Nasdaq Composite both dropped approximately 0.8% by 9:45 a.m., while the Dow Jones Industrial Average lost 405.6 points, or nearly 1%.
Chinese electric-vehicle makers saw their shares fall after Nio’s (NIO-5.20%) net loss widened unexpectedly. Nio’s stock decreased by 5.1%, with Xpeng (XPEV-1.68%) dropping 2.2% and Li Auto (LI-1.89%) declining by 1.5%. In contrast, Tesla (TSLA+2.11%) gained 2.4%.
Carnival’s stock (CCL-0.54%) dropped 5.8% after the company released its earnings report. Although the results surpassed expectations, investors remain cautious about travel demand following Delta Air Lines’ (DAL-0.62%) revised outlook.
FedEx’s stock plummeted 11% after the company reduced its full-year revenue and profit forecasts due to economic softening and uncertainty in the U.S., compounded by severe weather.
Micron’s shares (MU-7.50%) fell 7.6% after the company announced that margins would miss analysts’ estimates this quarter, according to Bloomberg. Despite this, Micron’s earnings exceeded expectations for fiscal second-quarter revenue and profit due to AI-related demand.
Nike’s stock dropped 8.8% after the company reported a challenging quarter as it attempts to refocus on its athletic roots while dealing with increased tariffs on China-made goods and a weakening U.S. consumer market. Its sales projection for the current period was significantly worse than anticipated.
Nio’s ADRs fell 5.1% after the Chinese EV-maker’s net loss widened unexpectedly. The shares plummeted 8.9% the day before the earnings release and dropped 8.8% in Hong Kong on Friday.
— news from Quartz