Peloton Interactive Inc (NASDAQ:PTON) shares are sliding Thursday as economic concerns pressure discretionary stocks.
What Happened: Labor Department data from Thursday showed that U.S. initial jobless claims unexpectedly fell last week to the lowest levels since April, signaling the labor market remains resilient despite continued rate hikes from the Federal Reserve.
Jobless claims decreased by 16,000 for the week ending Sept. 24 to 193,000, which was well below average economist estimates of 215,000. Gross domestic product dropped at an unrevised annual rate of 0.6% last quarter.
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Last week, the Fed raised its benchmark rate by 0.75% for the third straight time and indicated that it will continue to raise rates in what has been its most aggressive tightening cycle in more than 40 years.
What Else Is Happening: Peloton also announced a new partnership with Dick's Sporting Goods Inc (NYSE:DKS) on Thursday.
Dick's will sell Peloton products including the Bike, Bike+, Tread and Guide, as well as select accessories via branded fitness shops inside more than 100 U.S. retail locations. The companies said the rollout is expected to launch "early in the holiday season."
Dick's will be the only retailer outside of Peloton's sales channels to carry a selection of Peloton's connected fitness equipment. Peloton said it aims to reach new audiences, expand its total addressable market and drive member growth with the new partnership.
PTON Price Action: Peloton is making new 52-week lows on Thursday.
The stock was down 17.1% at $6.82 at time of publication, according to Benzinga Pro.
Photo: courtesy of Peloton.