📈 Market Wrap: Foot Locker surges, tech rallies, and Walmart earnings in focus
- NexxtGen Markets
- 2 days ago
- 4 min read
🔥 Foot Locker soars after-hours on takeover buzz
Foot Locker (FL) shares jumped 68% after-hours following reports that Dick’s Sporting Goods is preparing to acquire the iconic footwear retailer. While Foot Locker surged on the speculation, Dick’s fell 6% amid investor caution around deal pricing and integration risk.
Meanwhile, Boot Barn climbed 70% after announcing a new share buyback programme despite missing revenue estimates — highlighting renewed investor appetite for retail turnarounds.
📊 Nasdaq leads six-day rally fuelled by AI momentum
The Nasdaq Composite extended its winning streak to six consecutive sessions, driven by a fresh wave of optimism in the tech sector. Powering the move were gains in Nvidia, AMD, and Alphabet, supported by easing global trade tensions and Saudi Arabia’s latest multi-billion-dollar commitment to AI chip infrastructure.
Nvidia surged 4% intraday and is now back in positive territory for 2025. Saudi Arabia’s Humain project will receive new chip shipments from Nvidia, alleviating investor concerns about the potential slowdown in AI capital spending. US policymakers are also reportedly considering easing chip export curbs, which could further boost sentiment.
🛍️ Walmart earnings and US retail data take centre stage
Investors are watching Walmart (WMT) closely ahead of its Q1 2025 earnings, scheduled for release after the US close. Analysts forecast same-store sales growth of 3%, with e-commerce revenue expected to increase by 18% YoY, driven by improvements in logistics and fulfilment.
Bank of America remains bullish with a $120 price target, noting that Walmart continues to gain market share amid persistent inflationary pressures. Retail sales data due later today will be a key bellwether for consumer sentiment, with broader implications for Walmart’s forward guidance.
🧾 US PPI, jobless claims, and Fed watch
Today’s Producer Price Index (PPI) reading for April is expected to show a modest +0.2% MoM rise, after last month’s -0.4% decline. Initial jobless claims are forecast at 231,000, up slightly from 228,000. Markets will closely watch these prints ahead of Fed Chair Jerome Powell’s Thursday speech, which could offer fresh clues on the future of interest rates.
Higher Treasury yields have placed pressure on dividend-paying stocks, while also making bonds relatively more attractive. The S&P 500 is inching higher, but most fund managers remain cautiously positioned amid persistent macro risks.
🧠 Microsoft layoffs highlight AI’s impact on tech jobs
Microsoft (MSFT) confirmed that recent layoffs have hit 2,000 roles, with software engineers representing more than 40% of job cuts in Washington state. The move reflects broader cost control efforts as AI increasingly automates coding tasks — in some projects up to 30%. Managerial and AI project staff were also affected, while sales and support functions saw limited reductions.
Despite these job cuts, Microsoft continues to invest heavily in its AI strategy, including partnerships with OpenAI and internal initiatives like Copilot for Developers.
🎬 Netflix ad tier crosses 94 million users
Netflix (NFLX) reported that its ad-supported tier now has 94 million monthly active users, up 20 million since November 2024. At £7.99/month, it provides a compelling lower-cost alternative to the ad-free plan. The ad tier now reaches more 18–34-year-olds in the US than any traditional broadcast or cable network — a promising sign for advertisers.
The success of the tier reflects Netflix’s strategic pivot toward monetisation through engagement, offering both scale and targeting in a fiercely competitive streaming market.
🚀 Tesla explores new Musk pay plan amid legal battles
Tesla (TSLA) shares jumped 4% after reports that its board is considering a revised pay package for Elon Musk. This comes in response to ongoing litigation over Musk’s original 2018 plan, which was valued at $56 billion and is currently under legal appeal.
If the original deal is invalidated, Tesla will need to craft a new incentive plan — with Musk hinting he may shift his focus away from Tesla if not “fairly compensated.” Investors are watching closely, as any disruption to Musk’s leadership could weigh on the stock.
🌏 Alibaba earnings and AI ambitions
Alibaba (BABA) is set to report Q4 earnings, with revenue expected to rise 7.6% YoY and EPS up 5.7%. The Chinese tech giant continues to invest heavily in AI, cloud computing, and international expansion. A headline-grabbing $53 billion investment into cloud and AI underscores its ambition to remain globally competitive, particularly as it battles Tencent and Amazon on multiple fronts.
Investors will be looking for signs of margin stabilisation and strategic clarity after several mixed quarters.
💼 Microsoft, Cisco, CoreWeave, and Burberry in the spotlight
Cisco (CSCO) beat both earnings and revenue expectations, with AI infrastructure orders topping $1 billion. Revenue grew 11%, supported by strength in networking and cybersecurity sales. Cisco also issued a confident FY25 forecast.
CoreWeave (CRWV) surged after posting a 420% YoY revenue jump, but shares fell as the company reported widening losses of $149.6m. CEO commentary remains upbeat, citing robust backlogs and new strategic partnerships.
Burberry (BRBY.L) rose 17% despite reporting a £66m loss and announcing plans to cut 1,700 jobs by 2027. The cost-saving initiative and strategic factory shifts are part of the new CEO’s turnaround plan amid a difficult luxury retail environment.
📌 Economic events to watch today
13:30 GMT – US Data
Producer Price Index (PPI) (April): +0.2% MoM expected
Initial Jobless Claims: 231K forecast (vs. 228K prior)
Watch for movement in USD forex crosses and bond yields.
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