Why Nike, Deere, and Matson Slumped Today

Friday was a tumultuous end to a tough week, as many investors focused on the ongoing political shakeup at the White House. Chief strategist Stephen Bannon left his role with the Trump administration, and market participants appear to be increasingly nervous about the prospects for progress on key initiatives like tax reform, infrastructure spending, and healthcare policy. Major benchmarks didn't make significant moves, but their failure to bounce back from Thursday's big drop was a departure from the bull market's behavior lately. Adding to the gloom was bad news from several individual companies, and Nike (NYSE: NKE), Deere (NYSE: DE), and Matson (NYSE: MATX) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.

Shares of Nike fell 4% after sales results at major shoe retailers indicated a loss of demand for premium athletic footwear. Both Foot Locker and Hibbett Sports reported disappointing results, piling on after other sporting goods retailers suggested similar issues for the industry. One retailer's management said that sales of top styles in footwear and apparel didn't live up to expectations, complaining that providers like Nike were responsible for "limited availability of innovative new products in the market." Nike bulls hope that the slump at third-party retailers reflects a shift toward direct-to-consumer channels that the athletic giant has established, but shareholders won't know for sure until Nike releases its own results.

Image source: Nike.

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Source: Fool.com