U.S. stocks eye Nike, Constellation Brands earnings as sector rotation lifts utilities, healthcare

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Stocks eye Nike, sector shifts

Highlights

Nike shares are down almost 20% in three months and 35% year to date, making it one of the weakest Dow performers ahead of earnings.
Utilities and healthcare sectors lead with S&P healthcare up 7% and S&P utilities up almost 3% over the past week, as heat drives electricity demand.
The S&P airlines industry hit a new high Monday, rising almost 16% in June, while Microsoft is down 18% this month and 34% below its July 2025 high.

Key earnings and market drivers

As reported by CNBC, investors are watching Nike and Constellation Brands ahead of results due after the bell, alongside broader positioning across major sectors and index components.

Nike has been one of the weakest Dow performers, with the stock down almost 20% over three months, about 35% year to date and 48% below its August 2025 high. Among Dow components, only Chevron has performed worse than Nike over the past three months, while no other constituent has lagged the sports apparel company over the last 12 months.

Constellation Brands, the maker of Corona and Modelo beers, is also under pressure. Its shares are down almost 8% in three months and remain 21% below their July 2025 peak.

Sector leaders and laggards in focus

Utilities and healthcare are leading recent sector gains as a stretch of high temperatures across a broad part of the U.S. raises attention on electricity demand. The S&P utilities sector is up almost 3% over the past week, second only to healthcare, which has gained 7% in the same period, even as natural gas futures have fallen 2.5%.

NRG Energy leads utilities over the last week with a 7% gain, while American Electric Power is up almost 6%. Pinnacle West, Eversource and Edison are each up around 5% over that period.

Healthcare also reaches a new high on Monday, with the S&P sector up almost 8% in a month. Moderna has surged 47% over that span, Bio-Techne is up 37% after Merck says it will acquire the company, Humana has risen 27%, Charles River Labs is up around 25% and Cardinal Health has added 20%.

Elsewhere, the S&P airlines industry hits a new high Monday and is up almost 16% in June, with Southwest Airlines, United, Delta and American all posting double-digit monthly gains. In technology, the Roundhill Memory ETF, DRAM, and the VanEck Semiconductor ETF, SMH, both reached new highs last week but have since pulled back, with DRAM down 11.5% from its peak and SMH off 6%. Microsoft is set for its worst month since 2000, down 18% in June and 34% below its July 31, 2025 high, although analyst Dan Ives says Monday the stock is a buy after being beaten down too far.

Our earlier coverage of the Dow’s record close above 52,000 explained how easing U.S.-Iran tensions and improved risk sentiment helped lift major indexes. We also highlighted the market’s focus on incoming economic data and company-specific catalysts, setting the stage for continued rotation and volatility into earnings season.

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