MARKET REPORT: US gloom puts boot into JD Sports shares

Shares in JD Sports suffered a second session of heavy losses as jitters over the bleak performances of its American peers intensified.

The FTSE 100 firm sank 5.4pc, or 7.6p, to 133.15p following a near-7pc slide in the previous session – taking losses over two days to 12pc.

The latest slide came as Footlocker shares fell 30pc after the US trainer giant swung to a loss in the three months to July 29. 

It also slashed full-year profit forecasts and paused a quarterly dividend payment to focus on investing in other areas of the business.

JD Sports – the self-styled ‘King of Trainers’ – was already reeling from a gloomy update from America’s largest sporting goods retailer on Tuesday.

JD Sports – the self-styled ‘King of Trainers’ – was already reeling from a gloomy update from America’s largest sporting goods retailer on Tuesday

Dick’s Sporting Goods plunged by almost a quarter after it lowered its forecasts amid sluggish sales in its outdoor category.

Bank of America yesterday downgraded its rating to ‘neutral’ from ‘buy’. The broker cited concerns over ‘increased risks’ to sales and said shoppers were likely to prioritise spending extra cash on travel and entertainment rather than on sportswear.

JD has been expanding aggressively in the US, making it vulnerable to updates from rivals from across the Pond.

Back in the UK, property stocks rallied amid hopes interest rates may not rise as far as feared.

Shares in the warehouse developer Segro were up by 3pc, or 20.8p, to 726.2p while office and shopping centre owner Land Securities gained 2.6pc, or 15p, to 597p and student accommodation provider Unite rose 3.2pc, or 29p, to 937.5p.

There were also gains for Hammerson as the Birmingham Bullring owner rose 4.1pc, or 1p, to 25.32p, while Great Portland Estates, which owns offices and retail sites in the West End and City of London, added 5.5pc, or 21.4p, to 408.4p, estate agent Savills was up 4.4pc, or 37p, to 877p and housebuilder Taylor Wimpey climbed 1.9pc, or 2.05p, to 111.25p.

The rally came as figures showed private sector output shrinking in worst month for UK economy for more than two-and-a-half years.

Stock Watch: Jadestone Energy 

Jadestone Energy clawed back some losses after making progress in restarting production at an oilfield off Australia. Shares plunged by more than a third at the end of July after it suspended operations following a small defect between a water tank and an oil cargo tank.

Repairs have been done and production is unlikely to be halted for more than 60 days. It will provide a further update next week. Shares, which peaked at 109p in June 2022, rose 27.2pc, or 6p, to 28.1p.

That fuelled expectations that interest rate rises may not rise as far as feared – offering housebuilders and commercial property developers much needed respite.

After its recent losing streak, the London stock market clocked up a second day of gains yesterday as the FTSE 100 rose 0.7pc, or 49.77 points, to 7320.53 and the FTSE 250 was up 1.1pc, or 202.23 points, to 18,226.49.

Utility stocks led the way with Severn Trent up 2.1pc, or 49p, to 2348p while SSE added 1pc, or 16p, to 1592.5p, National Grid increased 2.2pc, or 20.6p, to 963.4p and United Utilities climbed 1.2pc, or 10.8p, to 915.2p.

There was good news for Cohort after one of its businesses, tech firm SEA, won a 32-month contract worth £17.5m with a UK customer to provide an external communications system for a defence programme. Shares surged 6.7pc, or 32.5p, to 516p.

The boss of Aviva bought more than £100,000 worth of shares in the insurer. Amanda Blanc snapped up 26,500 shares for 381p each as the stock added 1.2pc, or 4.5p, to 380.6p.

Building materials giant CRH received a vote of confidence ahead of its planned relisting in New York next month as Citigroup initiated its coverage with a ‘buy’ rating and target price of 5700p.

The broker said demand for its shares could increase as US investors look for bargain infrastructure stocks. CRH rose 0.7pc, or 29p, to 4515p.

This post first appeared on Dailymail.co.uk