What’s News in Markets: Trade Truce Winners, UnitedHealth Slides, Foot Locker Deal Bounce - WSJ What’s News

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WSJ What’s News in Markets: Trade Truce Winners, UnitedHealth Slides, Foot Locker Deal Bounce Hosted by Francesca Fontana | Released May 17, 2025

In this episode of WSJ What’s News in Markets, Francesca Fontana delves into the week’s most significant market movements, driven by the unexpected US-China trade deal, dramatic stock performances, and noteworthy corporate developments. Below is a comprehensive summary capturing the key discussions, insights, and conclusions from the episode.

1. US-China Trade Deal: A Temporary Truce

At the outset of the week, Francesca Fontana highlighted a pivotal development in international trade. “We got a surprise on Monday when the US and China announced a trade deal rolling back most of the tariffs between the two countries that have been weighing heavily on investors' minds and on many companies' operations” (00:11). This agreement, however, comes with a caveat—it is a 90-day agreement, introducing considerable uncertainty about its longevity.

Despite the temporary nature, the trade optimism fueled a market rally on Monday, with the three major indices—Dow Jones, S&P 500, and Nasdaq—showing gains over the week. Francesca noted, “the Dow added more than 3%, the S&P 500 gained more than 5%, and the Nasdaq rose more than 7%” (00:30).

2. Major Stock Movers Benefiting from the Trade Truce

The trade deal had a pronounced impact on specific sectors, particularly those with significant exposure to Chinese supply chains.

Amazon: As a major player in online retail with extensive ties to Chinese suppliers, Amazon experienced a surge. “We saw Amazon shares surge roughly 8% on Monday and on the week the stock gained 6.5%” (01:10). The easing of tariffs alleviated concerns from third-party sellers about potential price hikes and operational halts.
Boeing: The aircraft manufacturer benefited from China's decision to lift an earlier ban on Boeing airplanes. Francesca explained, “Boeing shares gained 2.5% on Tuesday and rose 5.6% on the week” (01:45). This move, coupled with the White House announcement of Qatar Airways' order of up to 210 Boeing aircraft, bolstered investor confidence.
Nike: As a global apparel brand relying on manufacturing in Vietnam, Indonesia, and China, Nike saw a significant uptick. “Nike climbed 7.3% on Monday and notched a weekly gain of more than 8%” (02:20). The reduction in tariffs eased cost pressures, enhancing profitability prospects.

3. UnitedHealth's Tumultuous Week: Resignations and Investigations

Contrasting the positive market movements, UnitedHealth faced severe setbacks. Francesca detailed the turmoil: “On Tuesday, UnitedHealth suspended its 2025 earnings outlook and announced the sudden resignation of Chief Executive Andrew Witte, and the stock dropped a whopping 18%” (03:00).

The situation worsened with revelations from the Wall Street Journal about the Justice Department investigating UnitedHealth for possible criminal Medicare fraud, alongside other probes into antitrust and Medicare billing practices. “UnitedHealth said it hadn't been notified by the Justice Department of the criminal investigation, and it stands by the integrity of its Medicare Advantage program” (04:00).

By week's end, UnitedHealth's stock plummeted by 23%, underscoring the severity of the company's challenges and investor concerns.

4. Foot Locker's Remarkable Surge Amid Acquisition

In a striking example of corporate maneuvers influencing stock performance, Foot Locker witnessed an 86% jump on Thursday following the announcement that Dick's Sporting Goods would acquire the company for approximately $2.4 billion. Francesca remarked, “Foot Locker jumped 86% on Thursday and ended the week with a gain of 98%” (04:40).

Conversely, Dick's Sporting Goods shares declined by 15% on the same day, reflecting market skepticism or strategic recalibrations following the acquisition news. This acquisition aims to stabilize Foot Locker, which had been struggling under the weight of previous tariffs and market pressures.

5. Market Outlook and Additional Insights

Francesca concluded the episode by directing listeners to additional resources for more in-depth analysis, including the Wall Street Journal's Exchange section and her own column, "The Week's News in the Score." She emphasized the importance of staying informed through reliable news sources to navigate the ever-evolving market landscape.

Conclusion

This week’s episode of WSJ What’s News in Markets provided a thorough examination of how significant geopolitical developments, corporate actions, and regulatory investigations shape market dynamics. From the optimistic yet uncertain US-China trade truce boosting major indices and specific stocks like Amazon, Boeing, and Nike, to the dramatic downfall of UnitedHealth amid leadership and legal challenges, and the extraordinary surge of Foot Locker following its acquisition, Francesca Fontana effectively encapsulated the multifaceted nature of today’s financial markets.

For listeners seeking deeper insights, the episode underscores the critical interplay between global policies, corporate strategies, and investor sentiment in determining market movements.

Notable Quotes:

“We got a surprise on Monday when the US and China announced a trade deal rolling back most of the tariffs between the two countries that have been weighing heavily on investors' minds and on many companies' operations” — Francesca Fontana [00:11]
“the Dow added more than 3%, the S&P 500 gained more than 5%, and the Nasdaq rose more than 7%” — Francesca Fontana [00:30]
“We saw Amazon shares surge roughly 8% on Monday and on the week the stock gained 6.5%” — Francesca Fontana [01:10]
“UnitedHealth said it hadn't been notified by the Justice Department of the criminal investigation, and it stands by the integrity of its Medicare Advantage program” — Francesca Fontana [04:00]
“Foot Locker jumped 86% on Thursday and ended the week with a gain of 98%” — Francesca Fontana [04:40]

Produced by Zoe Kolkin and Anthony Banci, supervised by Talia.

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Transcript4 lines

[00:00]
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[00:11]
Francesca Fontana
Discover more@viking.com hey listeners, it's Saturday, May 17th. I'm Francesca Fontana for the Wall Street Journal and this is what's news in markets. Our look at the biggest stock moves of the week and the news that drove them. Let's get to it. We have a deal. In case you missed it, we got a surprise on Monday when the US And China announced a trade deal rolling back most of the tariffs between the two countries that have been weighing heavily on investors minds and on many companies operations. Now the relief could be temporary. It's a 90 day agreement, so plenty of uncertainty remains. But the trade optimism sparked a rally on Monday with the three major indexes making some smaller mixed moves the rest of the week. On Tuesday, for instance, UnitedHealth's giant drop dragged the Dow lower and we'll get to that stock's meltdown in a bit. All in all, the three major indexes each made some gains this week. The Dow added more than 3%, the S&P 500 gained more than 5% and the Nasdaq rose more than 7%. As far as individual movers go, let's run through some of the big winners of the US China truce. Many of the stocks that had the most to gain were logically the ones most exposed to China in their supply chains. So for example, Amazon along with other big tech stocks got a boost from the news. Amazon's ubiquitous online retail platform and many of the third party sellers on that platform sourced their products from China before the trade deal eased the tariffs that they're subject to. Many of these merchants warned that prices could skyrocket and some said that they would have to stop their operations entirely. So we saw Amazon shares surge roughly 8% on Monday and on the week the stock gained 6.5%. Then there was Boeing, which rose on the news that China was scrapping an earlier ban on Boeing's airplanes. The government last month told Chinese carriers that they had to seek additional approval before taking delivery of Boeing aircraft that they had already ordered, so in effect halting deliveries to one of Boeing's biggest markets. Plus later in the week, the White House announced that Qatar Airways would buy up to 210 Boeing aircraft, one of several business deals that the President noted during his trip to the Middle East. Boeing shares gained 2.5% on Tuesday and rose 5.6% on the week. And then there was Nike, which relies on Vietnam, Indonesia and China for its products and was hit hard last month when the tariffs were announced. It climbed 7.3% on Monday and notched a weekly gain of more than 8%. Now back to UnitedHealth, the healthcare conglomerate and parent of insurance provider UnitedHealthcare. It's had a rough year and it had a bad week this week. On Tuesday, UnitedHealth suspended its 2025 earnings outlook and announced the sudden resignation of Chief Executive Andrew Witte, and the stock dropped a whopping 18%. But that wasn't all. The Wall Street Journal reported that the Justice Department is investigating the company for possible criminal Medicare fraud. And that's along with the other government probes into UnitedHealth, including antitrust investigations and a civil investigation of its Medicare billing practices that the Journal first reported in. UnitedHealth said it hadn't been notified by the Justice Department of the criminal investigation, and it stands by the integrity of its Medicare Advantage program. Now, not to give you listeners homework or anything, but if you haven't read the Journal's Medicare investigation series, I highly recommend you check it out. So back to the stock. What was the damage by the end of the week? Well, after Tuesday's drop and another big loss of 11% on Thursday, UnitedHealth ended up with a weekly loss of 23%. Now I'm gonna throw out a number 86 86%. That is how much that shares of sneaker seller Foot Locker gained on Thursday, thanks to Dick's Sporting Goods, the big box retailer buying the company for roughly $2.4 billion, if you'll pardon the pun. Foot Locker has been on pretty shaky footing and its shares have slumped this year on Trump's tariffs. So foot locker jumped 86% on Thursday and ended the week with a gain of 98%. How did Dick's shares do? Well, they didn't make quite so extreme a move, and not quite in the same direction, dropping 15% on Thursday. And now you know what's news in markets this week. You can read about more stocks that moved on. The week's news in the Score, my column in the Wall Street Journal's Exchange section. Today's show was produced by Zoe Kolkin and Anthony Banci, with supervising producer Talia. I'm Francesca Fontana. Have a great weekend.
[05:32]
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