U.S. Movers: China ADRs, Eli Lilly, Nike, Tesla

Scott Peters
02 Oct, 2024
New York City

Nike Inc. declined 7.4% to $82.57, and the athletic footwear company reported better-than-expected revenue in its latest quarter. 

Revenue in the fiscal first quarter ending in August declined 10% to $11.6 billion from $12.9 billion, net income plunged 28% to $1.05 billion from $1.45 billion, and diluted earnings per share fell to 70 cents from 94 cents a year ago. 

The athletic footwear and apparel maker said inventories at the end of the quarter fell 5% to $8.3 billion, reflecting product mix shifts and lower input costs. 

In the fiscal first quarter, the company returned to shareholders about $1.8 billion, including $558 million of dividends and $1.2 billion of stock repurchases. 

The company also withdrew its annual outlook and postponed its investor day as the new chief executive prepares to take charge. 

China-linked stocks advanced for the sixth session in a row following the stimulus rally turned into a frenzy in Hong Kong. 

The Hang Seng index soared 6% and extended its six-day rally to a whopping 25%, ahead of the widely anticipated fiscal measures following monetary stimulus and the relaxing of curbs on residential property transactions. 

Property stocks in Hong Kong trading soared between 10% and 60%, and tech stocks jumped between 6% and 20%. 

In New York trading, Alibaba Group advanced 2.6% to $115.63, JD.com gained 8.6% to $46.65, Baidu increased 5.8% to $116.45, and PDD Holdings jumped 5.3% to $153.06. 

Tesla declined 4.4% to $246.85 after the electric vehicle maker reported slightly less-than-expected deliveries in the third quarter. 

The electric vehicle maker delivered 462,890 vehicles, higher than 435,059 in the quarter a year ago and 443,956 in the previous quarter. 

Tesla is facing growing competition from Chinese automakers, and electric vehicle industry sales in China surged more than 43% from a year ago to 1.03 million in September. 

Li Auto, BYD, and NIO reported record monthly sales in China in September. 

Eli Lilly increased 0.8% to $885.78, and the pharmaceutical company is planning to invest as much as $4.5 billion in research and manufacturing facilities in Indiana. 

The new facility will hire about 400 staff, when fully operational, of scientists, researchers, engineers, and clinical personnel. 

The company's latest investment plan is in addition to its previously announced $5.3 billion plan in May to manufacture active ingredients for its diabetes and weight loss drugs.