Shares of Nike Inc.
sank 9.3% in premarket trading Friday, putting them on track to open at the lowest price seen in more than two years, after the athletic apparel and accessories giant warned that it will have to cut prices to clear excess inventory, hurting profit margins. The stock was the only one of the Dow Jones Industrial Average
components that was falling in the premarket, as Dow futures
rallied 175 points, or 0.6%. Given that Nike’s stock was the eighth lowest-priced Dow stock at $95.33 as of Thursday’s close, and the Dow is a price-weighed index, the implied price decline from the big percentage selloff would shave only about 58 points off the Dow’s price. In comparison, a similar percentage decline in the Dow’s highest-priced stock, UnitedHealth Group Inc.’s
at $503.83, would cut about 311 points off the Dow’s price.
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