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HSBC downgrades Nike on valuation

HSBC downgraded shares of Nike from Buy to Hold, in part due to the potential impact of the coronavirus. Analysts wrote that "a significant portion of sales and profits come from mainland China and Asia, and there is a risk that part of the supply chain could be disrupted due to the challenges in mainland China right now."

In the same note, HSBC called Nike  "the “LVMH of sporting goods” still dominating its field and putting pressure on competitors with hefty long-term investments and even though margins could go way higher but we think they reasonably won’t in the short term. This call was part of a larger note on sporting goods, in which the analysts write they prefer Chinese companies Anta and Li Ning to Nike, Adidas and Puma.