We sense a degree of trepidation creeping into US markets as, despite a renewed bout of buying of technology stocks, the indices don't seem to be able to make headway.
The S&P 500 index for example inched up to a new high this week of 6,144 - just 25 points or 0.4% above its previous high a month ago - but was immediately pulled lower by disappointing earnings from key stocks.
US brokers JPMorgan Chase (JPM:NYSE) and Goldman Sachs (GS:NYSE) report high levels of activity, but they also say they are seeing a sharp unwinding of ‘momentum’ trades by retail investors including, ironically, in their own shares.
Retail activity this side of the pond seems resolutely bullish, however, with the same five names making up the top five most-active US shares yet again, albeit in a slightly different order.
NIKE
Athletic wear company Nike (NKE:NYSE) had a good week on the stock market after it revealed it was partnering with celebrity Kim Kardashian’s SKIMS clothing line to launch a new brand aimed at women, NikeSKIMS.
The new brand will focus on apparel, footwear and accessories for the female fitness and activewear sector, with an initial launch this spring through selected US retailers and a global rollout planned for 2026.
Jefferies’ analyst Randal Konik, who has a hold recommendation on Nike and has been cautious about the stock due to competition headwinds, called the SKIMS deal ‘a promising step forward in the fitness and activewear market, leveraging the strengths of Nike’s innovation and SKIMS’ inclusivity’.
No financial details of the tie-up were revealed, nor were there any estimates of potential sales targets, but Konik commented: ‘The long-term potential for growth and market disruption remains compelling, making this collaboration a noteworthy development in the industry.’
WALMART
Shares in Walmart (WMT:NYSE) weakened 6.5% to $97.5 on profit-taking after a storming run that has seen the stock soar to an all-time high this year.
Despite delivering strong fourth quarter results (20 February), full-year 2026 guidance from the world’s largest retailer signalled a growth slowdown is on the way.
That said, broker Jefferies suspects the Bentonville-headquartered behemoth is sensibly managing investor expectations, setting 2025 up as ‘another year of beats and raises’.
For the quarter to 31 January 2025, Walmart’s sales rose 4.1% year-on-year to $180.6 billion. Within the mix, US comparable sales improved 4.6% amid positive growth in general merchandise and market share gains among higher-income shoppers with its emphasis on value and convenience, though a 0.7% decline in international sales disappointed analysts looking for 1.7% overseas growth.
For the new financial year, Walmart conservatively guided for a 3% to 4% sales increase, light of the 4.1% consensus estimate, while adjusted operating income is forecast to grow 3.5% to 5.5%, well below the Street’s bullish 10.2% expectation.
Cushioning the blow was a 13% hike in the annual dividend to $0.94 per share, Walmart’s largest increase in over a decade. ‘We have momentum driven by our low prices, a growing assortment, and an ecommerce business driven by faster delivery times,’ said chief executive Doug McMillon. ‘We’re gaining market share, our top line is healthy, and we’re in great shape with inventory.’
WINGSTOP
Chicken wings-focused restaurant chain Wingstop (WING:NASDAQ) left investors feeling hungry this week (18 Feb) after fourth quarter sales came up short amid an uninspiring outlook, sparking a near 20% decline in the share price.
Total revenue increased 27.4% year on year to $161.8 million, missing Wall Street forecasts of $164.5 million according to Refinitiv data. Fourth quarter EPS (earnings per share) grew 42.2% to $0.92, surpassing consensus estimates of $0.86.
After delivering almost 20% same store domestic sales growth in 2024 and 18.3% in 2023, management expects a more pedestrian low-to-mid single digit growth in 2025.
Increasing competition from fast food outlets has seen Wingstop ramp-up promotions, including the launch of its $16.99 boneless meal bundle.
Noting this is Wingstop’s second consecutive quarterly miss, Danni Hewson, head of financial analysis at AJ Bell said: ‘Wingstop badly needs to strike a more positive tone when it next reports to the market or its stalling progress could really come home to roost.’
Disclaimer: Financial services company AJ Bell referenced in the article owns Shares magazine. The authors own shares in AJ Bell.
