NKE recorded another sales decline in the latest quarter as it continued to hit hurdles with weakness in China. The sneakers and apparel company said the results were in line with its expectations, despite facing what it called an increasingly challenging operating environment in which sell-through remains under pressure. “While we continue to face top-line headwinds, we’re encouraged by progress in performance product and are focused on consistent execution, improved profitability and scaling our wins to realize our full potential,” Chief Executive Elliott Hill said. The company’s shares dropped more than 7% after the market close. Nike has been working through a turnaround plan under Hill, who rejoined the company in 2024. It has made progress in some areas—including its running, wholesale and North American businesses—but has hit hurdles in China, as well as with its Converse brand and sportswear offerings. Nike on Tuesday posted a fourth-quarter profit of $1.07 billion, or 72 cents a share, up from $211 million, or 14 cents a share, a year earlier. The recent quarter’s per share figure includes a 52-cent boost related to the expected recovery of Ieepa tariffs.

Despite spending much of the day's trading session in positive territory, the Swiss market closed on a weak note on Tuesday due to a sell-off at a few counters in the final hour. The benchmark SMI, which advanced to 14,287.62 around mid-afternoon, ended with a loss of 29.98 points or 0.21% at 14,193.32, about 40 points off the day's low of 14,153.97. VAT Group gained about 3.2%. ABB moved up 2.5% and Sika climbed 2.05%, while Partners Group ended up 1.88%. Lonza Group gained 1.15%. The contract development and manufacturing organization has announced plans to enhance its drug-linker center of excellence and expand payload-linker manufacturing capacity at its Visp site. Zurich Insurance, Julius Baer and Holcim gained 0.9%-1.15%. Sonova and Kuehne + Nagel also closed notably higher. Logitech International ended nearly 5% down. Roche, Richemont, Nestle and Swisscom lost 1.4%-1.8%. Lindt & Spruengli and Galderma Group finished lower by 1.21% and 1.02%, respectively. In economic news, a measure signaling future turning points in the Swiss economy improved to the strongest level in four months, results of a survey by the KOF Swiss Economic Institute showed. The economic barometer rose to 101.2 in June from a revised 98.6 in May. Moreover, it remained above the medium-term average of 100. The expected score was 98.2.

Europe
European stocks closed on a firm note on Tuesday, riding on encouraging regional economic data and hopes the European Central Bank will not hike interest rates anytime soon. Renewed optimism surrounding Artificial Intelligence helped keep the mood positive. Investors also focused on the developments on the geopolitical front and followed the speeches at the ECB Forum in Sintra. The pan European Stoxx 600 climbed 0.88%. The UK's FTSE 100 ended 0.12% up and France's CAC 40 gained 0.44%, while Germany's DAX jumped 1.5%. Switzerland's SMI drifted lower by 0.21%. Among other markets in Europe, Austria, Belgium, Denmark, Finland, Iceland, Netherlands, Poland, Spain and Sweden ended with sharp to moderate gains. Ireland and Norway edged up marginally. Czech Republic, Greece, Portugal, Russia and Türkiye closed weak. In the UK market, mining stocks were among the impressive gainers. Polar Capital Technology Trust gained about 4%. Babcock International and Scottish Mortgage moved up 3.4% and 3.3%, respectively. Melrose Industries, St. James's Place, Lloyds Banking Group, Rolls-Royce Holdings, BAE Systems, Lion Finance, Antofagasta, Anglo American Plc, Natwest Group, Halma, IMI and Croda International moved up 1.5%-3%. Entain ended lower by about 5.5%. Smith & Nephew shed 4.7% and Vodafone Group drifted down 3.7%. BT Group, Burberry Group, Persimmon, Diageo, Metlen Energy & Metals, Airtel Africa, Kingfisher, Centrica, Coca-Cola Europacific Partners, Fresnillo, AstraZeneca, BP and Unilever also ended notably lower. In the German market, Siemens Energy climbed more than 5.5% following the energy technology group's optimistic tone about orders during its third-quarter pre-closing conference call on Monday. Bayer gained about 5.2%. Siemens, Infineon and Daimler Truck Holding gained 4.5%, 4.4% and 3.9%, respectively.

United States
Following the rally seen over the course of Monday's session, stocks saw further upside during trading on Tuesday. The major averages all moved higher on the day, with the tech-heavy Nasdaq extending yesterday's surge. The Nasdaq shot up 393.58 points or 1.5 percent to 26,213.72, further offsetting the steep drop seen last week. The S&P 500 also advanced 58.93 points or 0.8 percent to 7,499.36 while the narrower Dow posted a more modest gain, rising 136.46 points or 0.3 percent to a new record closing high of 52,319.20. The strength on Wall Street came as technology stocks continued to regain ground following the sharp pullback seen during last week's trading. Semiconductor stocks helped to lead the way higher once again, with the Philadelphia Semiconductor Index spiking by 3.9 percent. Substantial strength was also visible among networking stocks, as reflected by the 2.4 percent spike by the NYSE Arca Networking Index. Outside of the tech sector, airline stocks moved sharply higher over the course of the session, driving the NYSE Arca Airline Index up by 3.2 percent to its best closing level in well over four months. The strength that emerged among airline stocks came amid a significant downturn by the price of crude oil, with U.S. crude oil futures slumping by 0.9 percent after jumping by as much as 1.2 percent. On the other hand, telecom stocks gave background after moving sharply higher over the two previous sessions, dragging the NYSE Arca North American Telecom Index down by 2.3 percent. Commercial real estate stocks have also come under pressure along with pharmaceutical, utilities and oil producer stocks.

Asia
Midweek, there is no clear trend on the stock markets in East Asia and Australia. In Tokyo, the Nikkei 225 index is up 0.7 per cent. Support is coming from the encouraging Tankan survey by the Bank of Japan. The sentiment index for major Japanese industrial firms has risen unexpectedly. Technology and electronics shares are in demand, following the upward trend set by their US counterparts the previous day. Tokyo Electron is up 2 per cent and SoftBank Group 0.7 per cent.

Bonds
In the U.S. bond market, treasuries came under pressure after ending the previous session roughly flat. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 4.4 basis points to 4.418 percent.

Analysis
JPMorgan raises ABB’s target price to CHF 80 (70) – Neutral
Citi lowers Kering’s target price to EUR 266 (268) – Neutral
Bank of America raises Ryanair’s target price to EUR 30 (26.50) – Buy

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