Peloton Shares Dive 14.5% After Treadmills Recalled

Dow Jones rose 97 points to record high
By Newser Editors and Wire Services
Posted May 5, 2021 4:01 PM CDT
Peloton Shares Dive 14.5% After Treadmills Recalled
The Fearless Girl statue stands in front of the New York Stock Exchange in New York's Financial District.   (AP Photo/Mary Altaffer, File)

Major US stock indexes closed with mixed results Wednesday as a pullback in utilities and real estate companies kept gains elsewhere in the market in check. The S&P 500 posted a gain of 0.1% to 4,167, after having been up 0.6% earlier in the day. The Dow Jones Industrial Average rose 97 points, or 0.3%, to a record high of 34,230, but the Nasdaq Composite dropped 0.4% after shedding an earlier gain, the AP reports. Shares of exercise equipment company Peloton Interactive skidded 14.5% after the company voluntarily recalled its treadmills after dozens of reports of injuries to children and pets, and at least one death. The $4,200 treadmill was the company's biggest expansion beyond its traditional exercise bike program. CNBC reports that the fall wiped $4 billon of Peloton's market value.

Financial stocks were among the big winners. JPMorgan Chase rose 1.3%. Energy companies also climbed. Exxon Mobil rose 2.9%. Technology companies, which had bounced back in the early going, lost most of their momentum. Apple was up 0.2%. Facebook shares fell 1.1% after the company announced its independent oversight board would continue to ban Donald Trump from the platform. Investors remain focused on earnings season, which has been better than expected. General Motors shares rose 4% after the company posted a solid quarterly profit compared to a year earlier. Under Armour also jumped 6.8% for the biggest gain in the S&P 500 after the athletic apparel company reported better-than-expected results.

(Read more stock market stories.)

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