Daily market update: JD Sports, Nike, US markets

“Investors were in a good mood at the end of the trading week with gains seen across European indices and many parts of Asia,” says Russ Mould, Investment Director at AJ Bell.

“Geopolitical tensions have eased back, for now, and risk appetite has improved.

“Shares in JD Sports burst to life off the back of Nike’s results. The footwear manufacturer has brought back Elliott Hill as CEO to drive a turnaround and investors lapped up his every word on plans to get the business back on track with new sports-focused product lines. A healthier Nike playing catch-up with product innovation could stimulate new demand for its products and theoretically JD Sports would benefit as it is a key retailer of Nike shoes.

“Corporate news was thin on the ground which gave investors time to take stock and think about portfolio positioning as we head into the second half of the year.

“Investors took some profits in Babcock following its recent strong run, making it the biggest faller on the FTSE 100 on Friday. The defence contractor’s shares have risen by more than 120% year-to-date and some investors might think it’s best to lock in some of those gains while the going is good. The same trend was seen on the Dax where defence expert Rheinmetall was the top faller following a 200% gain year-to-date.

“The US stock market has lagged many other parts of the world so far in 2025 but there are tentative signs it is now playing catch-up. Since the start of June, the Nasdaq index has taken the top spot in terms of performance for major indices globally, up 5.5%. The S&P 500 has advanced 3.9%, beating the FTSE All-World (+3.8%) which is a widely followed benchmark for the global stock market. Near the bottom of the list is the FTSE 100 which is essentially flat on the month.

“A stronger risk appetite suggests investors are fishing for opportunities in the US again, despite signs earlier this year of a market rotation away from America in favour of allocating more money to Europe and emerging markets. Admittedly, a month is too short a period to make a call on a definite trend, but it’s an area to watch closely.”

Nike

“Nike boss Elliott Hill always said the company’s recovery would be a marathon not a sprint and the market’s positive reaction to what represented its worst results in more than three years suggests that message has got through.

“Hill may only have been in situ in his current role for less than a year, but prior to coming out of retirement to take the top job was a Nike lifer who started as an intern in 1988 and someone who got to know the company inside out. Investors will be hoping he has a clear idea of how to tap into the strengths which originally made Nike the top dog in sportswear.

“Hill seems to have conducted a kitchen sinking exercise with the full-year numbers, even if quarterly revenue and earnings did come in a touch ahead of depressed expectations.

“The company has been working to clear out stale inventory, sort out its digital business and rebuild its relationships with wholesale partners after a previous strategy of focusing heavily on direct-to-consumer sales failed to pay off.

“Nike has quantified what represents a significant hit from tariffs, with a meaningful chunk of its existing supply chain based in China. The company is taking some steps to move its Chinese production elsewhere in just one of a number of signs Hill is looking to grasp the nettle and tackle Nike’s problems.

“Another challenge is competition from new brands, particularly in running where Hoka and On have emerged triumphant. Nike is looking to refocus its attention on sport and innovation to help fight off this threat.

“While the company is still seeing sales slide in this market, management suggested in a conference call that they were seeing strong sales for new launches in this area.”

These articles are for information purposes only and are not a personal recommendation or advice.