Sneaker Stock Sprints 84% on Buyout

A retail giant just posted strong quarterly results, a Chinese e-commerce leader is down 5% in premarket, and a footwear biggie is sprinting 84% after being acquired in a mega $2.4B deal. Here’s what’s moving the markets today.

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Futures 📈

What to Watch

Earnings:

• Applied Materials, Inc. [AMAT]: Aftermarket

• Take-Two Interactive Software, Inc. [TTWO]: Aftermarket

• Credicorp Ltd. [BAP]: Aftermarket

• CAVA Group, Inc. [CAVA]: Aftermarket

• Doximity, Inc. [DOCS]: Aftermarket

Economic Reports:

• Initial Jobless Claims [May 10]: 8:30 am

• U.S. Retail Sales [April]: 8:30 am

• Producer Price Index [April]: 8:30 am

• Core PPI [April]: 8:30 am

• Empire State Manufacturing Survey [May]: 8:30 am

• Philadelphia Fed Manufacturing Survey [May]: 8:30 am

• Fed Chairman Jerome Powell Speech: 8:40 am

• Industrial Production [April]: 9:15 am

• Capacity Utilization [April]: 9:15 am

• Business Inventories [March]: 10:00 am

• Home Builder Confidence Index [May]: 10:00 am

• Fed Governor Michael Barr Speech: 2:05 pm

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Retail

Walmart Reports Strong Q1 But Flags Inflation Ahead

Walmart’s (NYSE: WMT) released solid first-quarter results this morning, posting $168 billion in revenue—up 4% from the previous year—as customers rushed to stock up ahead of anticipated price hikes tied to rising tariffs.

The retail giant also saw profits climb 3% year-over-year to $7.3 billion. CEO Doug McMillon attributed the performance to Walmart’s ability to serve customers across multiple channels during an unpredictable economic period.

U.S. sales were particularly strong in April, with in-store traffic jumping 4.5%, reversing earlier declines in February and March.

The surge in shopping activity comes amid growing consumer concern over supply chain disruption and inflation, fueled by new import tariffs introduced by the Trump administration.

While Walmart’s vast product assortment and domestic sourcing—about two-thirds of goods sold in the U.S.—have helped cushion the impact, the company warned price increases are imminent.

Walmart also reported strong growth in membership revenues, with global fee income up nearly 15%. The company’s Walmart+ program is estimated to have over 15 million members. Shares are up 2.2% in premarket trading following the report.

E Commerce

Alibaba Slides 5% After Profit Miss and Sluggish Consumer Spending

Alibaba Group (NYSE: BABA) shares are slipping 5% in premarket trading after the Chinese e-commerce giant missed analyst expectations on both revenue and earnings for its fiscal fourth quarter, despite solid gains in cloud and AI segments.

The company reported revenue of 236.5 billion yuan ($32.6 billion), just below the 237.2 billion yuan expected. Net income came in at 12.4 billion yuan, significantly underperforming the 24.7 billion yuan forecasted.

While revenue was up 7% year-over-year and net income surged 279% off a low base, the results disappointed investors hoping for a stronger rebound powered by AI and e-commerce momentum.

However, its domestic e-commerce arm—Taobao and Tmall—grew revenue by 9% to 101.4 billion yuan, and customer management revenue rose 12% as merchants increased spending on platform-based services.

The company’s cloud computing unit delivered 18% year-over-year growth to 30.1 billion yuan, bolstered by public cloud demand and AI-related services. CEO Eddie Wu highlighted “triple-digit growth” in AI revenue for the seventh straight quarter, without disclosing exact figures.

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Heavy Equipment

Deere Q2 Earnings Drop 24% Amid Farmer Budget Cuts

Deere & Co. (NYSE: DE) revised its annual profit guidance downward and reported weaker second-quarter earnings this morning, citing softer demand from farmers pressured by high interest rates and declining crop prices.

Net income for the quarter fell to $1.8 billion, or $6.64 per share, from $2.37 billion, or $8.53 per share, a year earlier. Revenue dropped 16% to $12.8 billion from $15.24 billion in the same period last year.

Deere now expects full-year net income between $4.75 billion and $5.5 billion, trimming the lower end of its previous forecast of $5 billion to $5.5 billion.

The revision reflects the growing trend among farmers to rent machinery instead of purchasing new equipment, as economic headwinds weigh on agricultural spending. The industry is grappling with cooling demand after a boom in 2022.

Deere will continue investing in its core U.S. market despite these challenges. Rival CNH Industrial (NYSE: CNH) also slashed its annual forecast earlier this month due to similar market dynamics. The stock is down slightly by 0.21% in premarket

Foot Locker, Inc. [FL] - Last Close: $12.87

Foot Locker Inc. is a global athletic footwear and apparel retailer. Its shares are up 84% in premarket today because it is being acquired by Dick's Sporting Goods (NYSE: DKS) in a $2.4 B deal.

Foot Locker shareholders can choose between $24 per share in cash or 0.1168 shares of Dick's common stock. This is a 66% premium to the stock’s closing price yesterday.

Innovative Solutions and Support, Inc. [ISSC] - Last Close: $7.35

Innovative Solutions & Support Inc. is a leading provider of advanced avionics. The firm’s revenue and net margin has been consistently growing in the last 5 years.

Today the stock is seeing a 21% surge during early trading due to its stellar Q2 results, which saw a 104% Y-o-Y revenue increase, driven by strong demand in its F-16 product line and air transport market.

DLocal Limited [DLO] - Last Close: $10.19

DLocal Limited is a Uruguay-based fintech company. The firm has seen consistent growth in revenue and net earnings over the past few years.

The stock is up 18% in premarket today after its Q1 2025 results exceeded analyst expectations on both revenue ($216.8M) and net income ($46.6M).

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Everything Else

• Boeing lands a $96 billion deal with Qatar as Trump's trip draws a global business firestorm.

• Cisco delivers a solid Q1 beat as demand rebounds and guidance nudges higher.

• Boot Barn rallies despite its revenue miss as profit margins and store growth impress investors.

• Siemens’ profit jump masks struggles in its key automation division as full-year hopes stay intact.

• Thyssenkrupp braces for a rebound after the steel slump drags down quarterly earnings.

• Deutsche Telekom edges past forecasts as the U.S. dollar boosts Q1 earnings.

• Nextracker rides a solar boom with a strong Q4, but its outlook raises questions about pace.

• STERIS quietly outperforms on profits as steady demand supports healthcare tech growth.

• CoreWeave stuns with a sales surge but disappoints as losses widen in debut earnings.

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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