Sports Brand Under Armor Crashes on Lower Wall Street

Under Armor plunged 21 percent on the New York stock exchange on Friday. The sportswear seller struggled with supply chain problems and the lockdowns in China last quarter. As a result, the sports brand suffered an unexpected loss.


Turnover and the outlook for the year as a whole were also disappointing. The German sports brand Adidas stated earlier that it was also suffering from corona lockdowns in Vietnam and China.

The mood in the US stock markets remained negative after the price boom a day earlier. Concerns about high inflation and an impending recession kept markets in their grip. However, earlier this week, investors were relieved that the US central bank is not raising interest rates by even bigger steps in the future, and stock prices shot up.

Shortly after opening, the Dow-Jones index was 0.8 percent lower at 32,747 points. On Thursday, the Dow lost more than 1,000 points, experiencing its worst trading day since 2020. The broad S&P 500 also fell 0.8 percent to 4,114 points. Tech gauge Nasdaq lost 1.2 percent to 12,173 points after the 5 percent fall the day before.

Investors also processed new data on the US labour market. The major US government report found that 428,000 jobs were added in April. That was more than anticipated. However, unemployment remained unchanged at 3.6 percent.

DoorDash plunged nearly 12 percent. The meal delivery company managed to increase sales last quarter despite the reopening of many restaurants. The loss was also reduced.

Virgin Galactic fell more than 11 percent. Billionaire Richard Branson’s space company saw less loss last quarter but is delaying the launch of its commercial spaceflights until the first quarter of 2023.

Peloton lost 8 percent. According to the business newspaper The Wall Street Journal, the maker of internet-connected exercise bikes and treadmills is considering selling a stake of up to 20 percent in the company.

Boeing lost 1.3 percent. The aircraft manufacturer is moving its headquarters from Chicago to Arlington, Virginia. That’s near the political centre of the United States in Washington. The US military headquarters is also located there, which is an important customer of Boeing.

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