Apple, Nike Share Losses Contribute to Dow's Nearly 150-Point Drop

The Dow Jones Industrial Average (DJIA) took a significant hit on Tuesday, dropping nearly 150 points, as shares of Apple (AAPL) and Nike (NKE) experienced losses. These losses, coupled with broader market conditions, contributed to the overall decline in the index.



Apple's stock price fell by 3% over the past month, while Nike's stock price was down 5.8% over the same period. This decline in share prices for these two prominent DJIA components weighed heavily on the index. However, it is essential to note that due to their lower stock prices, Apple and Nike have lower weights in the DJIA, which limits the impact of their losses on the overall index.



Investors' concerns about swelling Omicron case numbers worsening inflationary pressures and hindering economic recovery contributed to the sell-off in risk assets, including Apple and Nike stocks. Additionally, downward revisions in earnings estimates for both companies further impacted their share prices.

For Apple, earnings estimates for the current quarter, fiscal year, and next fiscal year have changed -3.4%, -1.4%, and -1%, respectively, over the last 30 days. Nike's earnings estimates for the current quarter, fiscal year, and next fiscal year have changed -3.4%, -1.4%, and -1%, respectively, over the same period.

Despite these losses, both Apple and Nike have reported strong earnings recently. Apple reported earnings per share of $1.62 for the current quarter, indicating a change of +5.9% from the year-ago quarter. Nike reported earnings per share of $0.83 on revenue of $11.36 billion, topping analyst estimates across the board.

Investors should consider the potential long-term implications of these losses and adjust their strategies accordingly. By staying informed about the companies' financial performance, market position, and risks, investors can make more informed decisions about their portfolios. Additionally, diversifying investments across various sectors and asset classes can help mitigate risks associated with individual stocks or sectors.

In conclusion, Apple and Nike's share losses contributed to the Dow's nearly 150-point drop, with broader market conditions and downward revisions in earnings estimates also playing a role. Investors should monitor these companies' financial performance and market position to make informed decisions about their portfolios.