Tech Stocks Push Nasdaq in the Red, Nikola Fraud Allegations

Equities were steady at the open on Friday but tech stocks struggled to stay in the green. This week, shares of Apple (ticker: AAPL) fell 7.4%, Amazon ( AMZN) dropped 5.4% and Tesla ( TSLA) sunk 10.9%.

The Dow Jones Industrial Average ended in the green, adding 130 points, or 0.48%, to finish at 27,665. The Nasdaq finished Friday down 0.6%, ending at 10,853 and experiencing its worst week since March.

Fraud allegations. Nikola ( NKLA) shares dropped for a second consecutive day on Friday slumping more than 15% following allegations from Hindenburg Research, a forensic financial research firm. The firm alleges Nikola, the electric motor startup, is an “intricate fraud built on dozens of lies,” perpetuated by the company’s founder, Trevor Milton, according to Hindenburg’s latest report. Nikola denies any wrongdoing. These claims come after General Motors ( GM) took an 11% ownership in the company through a $2 billion equity stake, according to GM’s news release this week.

Markets flop for Kroger. Kroger ( KR) released its second quarter earnings for 2020 on Friday and results were better than expected — but that didn’t totally satisfy markets. Total sales came to $30.5 billion compared to $28.2 billion last year. Digital were sales up 127% and adjusted earnings per share of $0.73 was up 66% from the second quarter of 2019, according to the grocer’s press release. KR shares were up nearly 5% in premarket trading but finished the day down more than 1%.

[READ: Model Portfolios Can Achieve Investment Goals.]

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