Nike's financials remain strong, with solid revenue growth and a strong balance sheet, despite setbacks in sales and net income; inventory issues are improving, which should help expand profit margins; and the stock is trading at reasonable prices, making it a compelling opportunity for long-term investors.
Nike's stock has fallen for a ninth consecutive session due to concerns over China's slow consumer recovery and high merchandise stockpiles, wiping out nearly $13 billion of the company's market value.
Nike shares are experiencing their longest losing streak since the company went public in 1980, with nine consecutive days of losses due to concerns about a demand slowdown in China and criticism over a lack of product innovation.
Profits at China's industrial firms fell for a seventh consecutive month in July, declining by 6.7% year-on-year, as weak demand and a faltering post-pandemic recovery continue to squeeze companies in the world's second-largest economy.
China's leading e-commerce company, JD.com, has experienced a significant decline in its stock price due to investor concerns about the Chinese economic recovery and the property market debt crisis, despite positive second-quarter earnings and growth prospects.
Alibaba's stock is dropping due to China's struggling economy, but there are signs of resilience and hope for the future.
Consumer-facing companies like Starbucks, Nike, and Target have experienced declines in their stock prices despite the overall gains in the market, but each company has unique strategies in place that make them worth considering as investments.
Apple stocks fell 3.6% after China reportedly banned officials from using or bringing iPhones and other foreign-branded devices into the office, signaling Beijing's push to reduce dependence on American technologies.
Hong Kong stocks, including SMIC, Tencent, and JD.com, dropped as weak China trade data and a depreciating yuan put pressure on the market.
Asian stocks fell as trade data indicated weakness in the Chinese economy and regional technology shares were hit by the possibility of more U.S. restrictions on China after a supposed Chinese chip breakthrough.
Shares of major Apple suppliers dropped following reports of China widening curbs on iPhone use by state employees, raising concerns about sales in one of Apple's biggest markets.
Shares of Nio Inc., along with other U.S.-listed China-based companies, have experienced a decline in response to weak demand for products made in China and growing concerns about trade tensions between the U.S. and China.
Chinese government restrictions on the use of iPhones at work have caused Apple's stock to decline, but investors see this as a buying opportunity due to China's previous restrictions on foreign products and Apple's strong prospects, attractive valuation, and upcoming product releases.
U.S. stocks dropped as enthusiasm for Arm's IPO faded and the United Auto Workers initiated a strike against Detroit's Big Three automakers, with the Nasdaq falling 1.6% and the S&P 500 losing 1.2%.
U.S. companies are losing confidence in China and some are limiting their investments due to tensions between the two countries and China's economic slowdown.