Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average fell another 414 points Friday afternoon and remained on track for its worst performance in December since the Great Depression. The index has lost more than 1,200 points over the last three days.
- Third-quarter GDP growth in the U.S. was revised down to 3.4% from 3.5% by the Commerce Department, and durable goods orders for November rose by a less-than-expected 0.8%.
- Nike Inc. (NKE - Get Report) rose 7.7% Friday after the sports apparel maker posted fiscal second-quarter earnings that topped Wall Street's expectations and issued a robust outlook.
Wall Street Overview
Stocks plunged again on Friday - falling by more than 400 points - after getting a sharp boost earlier in the session from weaker-than-expected economic data that suggested the Federal Reserve may not be able to raise interest rates as quickly as anticipated.
Losses were fueled by increasing anxiety that Donald Trump's erratic administration will add to a global market backdrop that has been struggling under intense pressure from falling share prices, slumping crude and a weakening U.S. dollar. The Dow's downward momentum picked up speed after 3 p.m. following Trump trade talk chief Peter Navarro's bearish comments to Nikkei on the outlook for a China trade deal in the next few months.
Darkening the mood further was the fact that Trump appeared content to risk a government shutdown later Friday by refusing to sign a continuing resolution that would fund the nation's spending plans until February, arguing it didn't include $5 billion for a proposed wall along the Mexican border.
Trump tweeted Friday:
The Democrats, whose votes we need in the Senate, will probably vote against Border Security and the Wall even though they know it is DESPERATELY NEEDED. If the Dems vote no, there will be a shutdown that will last for a very long time. People don't want Open Borders and Crime!- Donald J. Trump (@realDonaldTrump) December 21, 2018
Equities had rallied earlier Friday after third-quarter GDP growth was revised to 3.4% from 3.5% by the Commerce Department, while durable goods orders for November rose by a less-than-expected 0.8%. Earlier gains also were prompted by New York Fed President John Williams saying the central bank could reconsider its views on rate hikes in 2019.
Williams, speaking on CNBC, said the Fed was "listening, there are risks to that outlook that maybe the economy will slow further."
"What we're going to be doing going into next year is reassessing our views on the economy, listening to not only markets but everybody that we talk to, looking at all the data and being ready to reassess and re-evaluate our views," Williams said.
The Dow fell 414 points, or 1.8%, to 22,445 at the market's close Friday afternoon - at its high for the session the index rose 394 points. The S&P 500 lost 2.06%, and the Nasdaq was down 2.9%, taking the heaviest beating. Netflix Inc. (NFLX - Get Report) , Amazon.com Inc. (AMZN - Get Report) and Facebook Inc. (FB - Get Report) were among the leading laggards on the tech-heavy Nasdaq.
Nike earned 52 cents a share in the quarter, up from 46 cents a year earlier. Revenue rose 10% to $9.37 billion. Digital sales soared 41%.
Nike said sales rose in each of its four geographic markets, with sales in North America jumping 8.5% to $3.78 billion, and sales in China rising 26.5%.
Gross margin in the quarter rose 0.8% to 43.8%, Nike said.
The company also said full-year revenue could "potentially" approach the lower double-digit percentage range, with gross margins improving by around 70 basis points, up from a prior forecast of just more than 50 basis points.
Canopy Growth Corp. (CGC - Get Report) was down 4.6% on Friday after rising earlier in the session after the cannabis company said it "will participate in the American market" after the Farm Bill was signed into law.
"Canopy Growth will participate in the American market now that there is a clear federally permissible path to the market," said CEO Bruce Linton in a statement. "Consistent with the spirit of the Farm Bill, Canopy Growth will participate in ways that support American farmers."
Trump on Thursday signed the so-called Farm Bill -- a massive volume of agriculture legislation that includes new rules governing growing hemp, as well as billions of dollars in various forms of assistance to farmers.
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