Investors showed strong interest in Adidas and Puma stocks in early European markets following the first-quarter earnings announcement of their U.S. competitor, Nike. Nike surpassed earnings expectations, resulting in a surge in Adidas shares by 6% and a 5% increase in Puma stock. Meanwhile, JD Sports Fashion also experienced a 6% jump in share value in London.
Positive Read-Across for European Sporting Goods Sector
Analysts at JPMorgan, led by Olivia Townsend, highlighted several factors contributing to the positive read-across for the European sporting goods sector. These factors include higher-than-anticipated demand in North America, a robust performance in Europe, improvements in gross margins, and ongoing enhancements in inventory levels.
Upswing in Major European Indexes
The upbeat sentiment was not limited to sporting goods stocks alone, as the major European indexes reflected gains as well. The U.K.'s FTSE 100, Germany's DAX, and France's CAC 40 each recorded gains of around 0.7%.
Positive Outlook for U.S. Stock Futures
U.S. stock futures also witnessed modest gains ahead of the release of the PCE price index report later. The S&P 500 concluded Thursday with a 0.6% increase, contributing to the optimistic market sentiment.
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