Madison Square Garden's stock falls after news of Durant's signing with Nets, not Knicks

Shares of Madison Square Garden Co. MSG, -0.91% dropped 3.2% toward a 5 1/2-month low in morning trading Monday, bucking the big rally in the broader stock market, after reports that basketball star Kevin Durant will join the Brooklyn Nets. Meanwhile, the Dow Jones Industrial Average DJIA, +0.67% rallied 247 points with 28 of 30 components trading higher, boosted by the truce in the U.S.-China trade war. There were multiple media reports that Durant, who had been expected for months to sign with MSG’s New York Knicks, signed a four-year, $161 million deal with the Nets instead. Durant will miss next season with an Achilles injury, but will eventually team up with star Kyrie Irving, the report said. MSG’s stock has lost 7.5% over the past three months, and has shed 12.6% over the past 12 months, while the Dow has rallied 10.6% the past year.

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