Stock Market Update: Nike and Charles Schwab Face Longest Losing Streaks, Banks and Airlines Struggle

by Warren Seah

August is typically a seasonally weak month for stocks, but some major companies have been hit particularly hard recently. Investors in Nike, Goldman Sachs, Charles Schwab, and others would have been better off enjoying their vacations instead of continuously checking for stock price updates over the past couple of weeks.

Nike’s Longest Losing Streak on Record

Nike has experienced a significant downturn, with 10 consecutive days of losses – the longest losing streak the company has ever faced, according to Dow Jones Market Data. The stock has plummeted by 11.6% during this period. It hasn’t helped that there are increasing signs of an economic slowdown in China, which happens to be Nike’s second-largest market. Furthermore, the outlook was slashed after Foot Locker, one of Nike’s wholesale partners, missed sales expectations in the second quarter. Another blow came from disappointing earnings reported by Dick’s Sporting Goods, another wholesale partner, further extending Nike’s record-breaking losing streak to 9 days.

Charles Schwab’s Unfortunate Decline

Charles Schwab has also experienced a significant decline with 11 consecutive days of falling stock prices. This is the longest losing streak for the company since July 2004 when it fell for 16 straight trading days. During this time, the stock has dropped by 14.4%.

The downward trend continued after Charles Schwab announced plans to cut operating expenses by reducing headcount and office space, causing a 5% drop in the stock price on Tuesday.

These developments have made August an especially challenging month for these companies and their investors.

The Struggles of America’s Largest Banks and Southwest Airlines

Declining Stocks for Goldman Sachs, Citigroup, and Bank of America

It has been a challenging period for America’s largest banks. Goldman Sachs and Citigroup (C) stocks have both experienced declines for seven consecutive days. Similarly, Bank of America has fallen for six out of the last seven days.

Southwest Airlines Faces an Abysmal August

Southwest Airlines (LUV) is another company that has been having a tough time this August. The low-cost carrier’s shares have been on a losing streak for eight days, marking its longest streak since February 2020 when it fell for 10 consecutive sessions. So far, it has experienced a 6.9% decrease during this streak.

Disappointing Earnings and Softening Demand

The airline’s recent earnings report left investors disappointed and indicated a softening of domestic demand. Southwest indicated that it expects revenue per available seat mile to decline in the third quarter. Essentially, this means that the company won’t be making as much money from each passenger—an indication that both demand and fares are on the decline.

Concerns Surrounding American Airlines’ New Pilot Pay Deal

Investors may also have concerns about American Airlines’ new pilot pay deal, which equates to a 46% increase over four years, according to its pilots’ union. This may be of particular concern for Southwest Airlines, as it is the only major carrier that has yet to reach a deal with its pilots.

A Need for Positive News

Investors are eagerly hoping for some positive news, or at the very least, an absence of bad news, to break these streaks and uplift their spirits.

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