Shares of Nike Inc. slumped 1.9% in premarket trade Tuesday, after a downgrade at Susquehanna Financial, which is cutting the gains in the Dow Jones Industrial Average futures in half. Analyst Sam Poser at Susquehanna cut his rating to neutral from positive, and slashed his stock price target to $54 from $64. The stock’s price decline of 99 cents ahead of the open would shave about 7 points off the Dow , while Dow futures were up 8 points. He said there is an oversupply of Nike basketball product in North America, which should pressure sales and margins, as it goes against Nike’s business model of keeping supply below demand. He said a near-term lack of innovation in select categories is also hurting performance more than expected. The stock has gained 5.3% year to date, while the Dow has climbed 13%.
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