- The Dow fell 0.3% after debt ceiling negotiations on Capitol Hill broke down.
- Index finishes the week higher, breaking a two-week losing streak.
- Nike stumbles after Foot Locker stokes worries over sneaker sales.
- Tech stocks Cisco Systems, Intel, and IBM moved higher.
The Dow Jones Industrial Average fell 0.3%, or 109 points, after Republican lawmakers walked out of debt ceiling talks, raising concerns that the U.S. government could run out of cash by June 1.
Despite Friday's dip, the Dow finished the week up 0.4%, breaking a two-week losing streak. The S&P 500 and Nasdaq also fell Friday but, like the Dow, ended the week in the green, rising 1.7% and 3% respectively.
Cisco Systems (CSCO) was the Dow's best performer, rising 1.9% after its earnings and revenue in the most recent quarter topped analyst estimates.
Merck & Co. (MRK) moved up 1.3%. Chevron (CVX) moved higher by 0.75%, helping to make energy the day's best-performing sector. And while the tech sector ticked downward slightly, IBM (IBM) and Intel (INTC) rose 0.9% and 0.8%, respectively.
Nike (NKE) was the Dow’s worst performer, falling nearly 3.5%, after athletic shoe retailer Foot Locker's (FL) missed sales estimates and lowered its full-year sales outlook. Nike also could face $500 million in fines for misclassifying thousands of workers, according to a Guardian report published yesterday.
Walt Disney (DIS) plunged around 2.6% after Macquarie downgraded the stock from outperform to neutral, citing declining revenue from its cable channels, slowing park traffic, and the challenges of providing direct-to-consumer content.
Home Depot (HD) fell about 1.5% after posting its worst quarterly sales miss in 20 years earlier this week. The company, like Foot Locker, also lowered its sales outlook for the year.