Peloton shares slide as economy cools

Peloton Interactive Inc PTON shares fell Thursday as economic concerns pressure discretionary stocks.

Labor Department data showed that the U.S. initial jobless claims unexpectedly fell to the lowest level since April, signalling the labor market remains resilient despite continued rate hikes from the Federal ReserveFederal Reserve.

Jobless claims fell 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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The Fed raised its benchmark rate by 0.75% for the third consecutive time last week, 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 announced a new partnership with Dick's Sporting Goods Inc 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 roll out is expected to begin early in the holiday season, according to the companies. Dick's will be the only retailer outside Peloton's sales channels to carry a selection of Peloton's connected fitness equipment. Peloton hopes to reach new audiences, expand its total addressable market and drive member growth with the new partnership.

Peloton is making new 52 week lows on Thursday, according to PTON Price Action.

The stock was down 17.1% at $6.82 at the time of publication, according to Benzinga Pro.