What's Going On With Nike Shares?

BY Benzinga | TREASURY | 04/19/22 03:01 PM EDT

Shares of several companies in the retail & apparel sector, including Nike Inc (NYSE:NKE), are trading higher amid overall market strength as traders assess Fed policy outlook, rising Treasury yields and quarterly earnings reports.

Nike has otherwise experienced weakness in 2022 amid continued concerns over Fed tapering in order to combat inflation. Nike shares are lower by 17.19% on a year-to-date basis.

Investors continue to assess upcoming corporate earnings in April while a new 2-year high of 2.930% for the U.S. 10-Year Treasury Tuesday has otherwise not impacted the broader market for the session. In general, when interest rates rise, the value of future cash flows is reduced for stocks, which in turn lower the value of the stock.

See Also: Why Plug Power Shares Are Surging

According to data from Benzinga Pro, Nike is trading higher by 3.60% at $136.37.

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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