Dow Jones Today: Index Drops on Consumer Concern

Nike, JP Morgan and Boeing led the Dow lower, while IBM kept riding the AI wave

By
Terry Lane
Terry Lane
Full Bio
Terry has 25 years experience in journalism and communications, reporting on a range of topics that include personal finance, telecommunications, Congress, government regulations, and criminal justice. He has also worked on technology, energy, and environmental policy issues as a congressional press secretary and owned and published a local community newspaper in North Carolina.
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Published May 12, 2023
A woman walks outside a Nike store.

Kevin Frayer / Getty Images

Key Takeaways

  • The Dow was the worst-performing index of the week, falling about 1.5%.
  • Data indicating inflation, poor consumer sentiment helped stoke investor worries.
  • Nike was the worst-performing Dow stock, with JP Morgan Chase and Boeing also falling.
  • IBM was the Dow's best performer after its AI announcement this week.

The Dow Jones Industrial Average fell almost 100 points, or 0.25% on Friday, sending the index lower for a second straight week as inflation and consumer sentiment weighed on the market. 

The Dow fell almost 1.5% on the week, the worst performance among the three major indexes, as the S&P 500 edged 0.8% lower and the Nasdaq eked on a 0.2% gain. The Dow fell every day this week, marking its longest losing streak since March. 

Stocks fell on Friday after the University of Michigan's consumer sentiment index slipped to a six-month low of 57.7 in May from April's 63.5 reading. Data also showed that consumers expect inflation to accelerate over the next six months while economic conditions worsen.

Nike (NKE) fell about 2.5%, leading other Dow stocks lower. After another bad week for regional banks, the financial sector was lower by nearly 1%, helping to send JP Morgan Chase (JPM) shares down almost 2%. 

Boeing (BA) declined by more than 1% after it struggled with deliveries of its 737 Max jet, following a report that it again fell behind competitor Airbus. Shares of Apple (AAPL) were down almost 1% after one of its primary suppliers, Foxconn, reported a big quarterly miss, sending its shares 2% lower. 

IBM (IBM) moved up more than 1% to lead the Dow after announcing its own suite of artificial intelligence tools this week. Consumer staples stock Procter & Gamble (PG) also shrugged off recession fears and moved higher by 0.7%, as that sector was one of the few that flirted with gains. 

Baird cut its price target for Home Depot (HD) and analysts expect the home improvement giant to post weak results when it reports earnings next Tuesday. However, it was one of the few Dow stocks to move higher, gaining about 0.3%.

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