The Dow fell nearly 100 points, or 0.3%. Nike (NKE) was one of the biggest drags on the blue chips, falling more than 3%. Adidas issued a lousy earnings report Friday because of weakness in China. Under Armour (UA) also plunged more than 25% following weak results.
The Dow fell for the sixth consecutive week, while the S&P 500 and Nasdaq are on a five-week losing streak. The stock market is now at its lowest point for the year.
“It’s a crazy time,” said Scott Lepene, co-chair of the distressed M&A investing group at Thompson Hine. “The market is reacting as if we are in a recession. We may not have bottomed out just yet.”
Still, investors did prop up some stocks that reported good earnings. Shares of Square owner Block (SQ) were up 1% thanks to strong results for its Cash App. Food delivery service DoorDash rose as much as 4% following its earnings before pulling back.
Consumers still appear to be in reasonably healthy financial shape, despite worries about inflation. That’s helping to lift pockets of the market and economy.
“The jobs report was robust and indicative of strong demand,” said Joe Davis, global chief economist with Vanguard. Davis added that employment in the services sector is particularly tight, which will likely lead to more upward pressure on wages and higher interest rates from the Fed.
“inflation is still uncomfortably high,” Davis said.