- Nike stock gains despite market downturn.
- Traders expect Vietnam's leaders to negotiate a good deal on tariffs.
- The 90-day tariff reprieve ends in early July.
- Nike has overcome the 50-day SMA and could rally toward $74.
Nike (NKE) shares are rising in the face of the gentle market downturn on Tuesday, and some traders might be interested in how to play the premier US sneaker king. NKE stock has transcended its 50-day Simple Moving Average (SMA) in the last several sessions for the first time since March 11, and one wonders if the bottom is in.
Nike stock is up just under 1% at $62.62 as the stock market heads for a close.
The wider market is taking a breather after the long uptrend that has been witnessed since April 9. The Dow Jones Industrial Average (DJIA), which includes Nike in its 30 holdings, has fallen 0.57% at the time of writing. While the S&P 500 and NASDAQ Composite are both about 20 basis points lower.
Nike stock news
Nike laid off some of its tech employees on Tuesday, announcing that it would redeploy some of its tech workflow to outsourced workers. Under CEO Elliott Hill, the company has hired new executives for its strategy, human resources, and sports marketing divisions.
Some traders are noticing that Nike stands to benefit from Dick's Sporting Goods' (DKS) acquisition of Foot Locker (FL).
"As NKE CEO Elliott Hill strengthens an already robust relationship with DKS, this consolidation could enhance NKE’s retail presence and brand consistency," wrote Jeffries analyst Randal Konik in a client note.
Konik said that Nike is the lead footwear brand at both Dick's and Foot Locker, so it's ownership of both should lead to greater retail focus on Nike.
Konik wrote more than a week ago that Nike was one of the primary beneficiaries of the US and China agreeing to lower tariffs. Nike only produces about 15% of its products in China.
However, many analysts think this reduction in tariff risk points to better odds of a decent deal for Vietnam. Nike produces the largest quantity of its goods in Vietnam compared with all other countries, and the Trump administration originally placed a 46% tariff on goods from Vietnam before pulling it back to 10%, like most other countries.
Vietnam's government has been active in meeting the Trump administration halfway, and many expect the country to garner a decent deal before the 90-day tariff rate pause ends in early July.
Nike stock forecast
Nike stock has overcome the 50-day SMA in the past few sessions. This gives it the steam to make a run for the top trendline of the price channel it has traded mostly within since late 2023. Testing the top of the channel would put NKE stock near $74 or above, which adds up to a near 20% gain.
If the market falls or if Vietnam's tariff deal with the Trump administration fails to succeed, expect Nike stock to return to early April support near $52.50.
NKE daily stock chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY holds steady below 145.00 ahead of BoJ policy decision
USD/JPY consolidates its gains registered over the past two days and remains below the 145.00 mark as traders keenly await the latest BoJ monetary policy update. In the meantime, a modest USD uptick lends some support to the pair amid expectations that the BoJ might forego another rate hike this year.
AUD/USD retreats further from YTD top amid anti-risk flow
AUD/USD extends the overnight late pullback from a fresh YTD peak as rising geopolitical tensions offer some support to the USD. Trade-related uncertainties also undermine the Aussie. However, Fed rate cut bets could cap any meaningful USD appreciation and limit losses for the currency pair.
Gold slips back to daily lows, looks at $3,380
Gold keeps its offered stance on Monday, and is now drifting lower to the area of daily troughs around $3,380 per troy ounce against the backdrop of persistent risk-on sentiment and shrinking effervescence in the Middle East. Furthermore, the tepid bounce in US yields across the board also contributes to the decline in the precious metal.
Bank of Japan set to hold rates steady as officials mull halving the pace of tapering JGB purchases
The Bank of Japan is set to keep interest rates steady at 0.50% on Tuesday. The focus will be on the BoJ’s JGB purchases tapering plan as well as any hints on the timing of the next rate hike. The BoJ policy announcements are expected to significantly impact the Japanese Yen.
Chinese data suggests economy on track to hit 2025 growth target
China's May data was mixed with strong retail sales, but soft readings on fixed-asset investment and property price. Overall, though, data suggests that China remains on track to achieve its growth target in the first half of 2025.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.