- Investors are still anxiously awaiting news on the debt ceiling deadline.
- Nike slumped after the stock was downgraded on retail worries.
- 3M was the Dow's best performer, with American Express and Intel also moving higher.
Coming off a positive week, the Dow Jones Industrial Average dropped 0.4%, or 140 points, as investors continued to wait for developments in the U.S. debt ceiling negotiations.
President Joe Biden and House Speaker Kevin McCarthy were scheduled to meet this afternoon on debt ceiling negotiations, after talks broke down last Friday. Treasury Secretary Janet Yellen has said the U.S. could run out of funds to meet all of its obligations as early as June 1.
Nike (NKE) was the Dow's worst-performing stock, with shares falling 4% after Williams Trading downgraded the shoemaker to sell from hold. Williams analysts said the company had failed to adjust to the return of in-person shopping, as evidenced by elevated inventory, which they estimate is $800 million above ideal levels.
Nike’s stock slid last week after retailer Foot Locker (FL) missed earnings estimates, raising concerns about consumer spending.
Chevron (CVX) shares fell 1.8% after the oil giant said it would purchase PDC Energy (PDCE) in an all-stock transaction valued at $6.3 billion. PDC shares shot up almost 7% on the news.
3M (MMM) shares rose 2.6%, making it the Dow's best performer. In April the company said it would layoff 6,000 employees after posting lower first-quarter revenue and profit than a year ago.
Intel (INTC) shares closed 1.2% higher after China said it would ban microchips made by rival Micron Technology (MU).
American Express (AXP) shares moved up more than 1.6%, though it was one of the only financials stocks in the Dow to gain. JP Morgan Chase (JPM) shares fell 0.7% while it held its investor day, where the company said it would expand its branch network. Shares of Visa (V) were down by 0.6%, and Goldman Sachs (GS) fell 0.4%.