Market Beats | Dicks Sporting Goods to Acquire Foot Locker for $2.4 Billion; US Retail Sales Growth Slows Sharply in April; NJ Transit Strike Looms, Threatening Widespread Disruption for Commuters; Trump Pressures Apple to Halt iPhone Production in India; UnitedHealth Plunges Amid Report of DOJ Criminal Medicare Fraud Probe; Canadian Home Prices See Sharpest Drop in Over a Year

—— Dick’s Sporting Goods to Acquire Foot Locker for $2.4 Billion; US Retail Sales Growth Slows Sharply in April; NJ Transit Strike Looms, Threatening Widespread Disruption for Commuters; Trump Pressures Apple to Halt iPhone Production in India; UnitedHealth Plunges Amid Report of DOJ Criminal Medicare Fraud Probe; Canadian Home Prices See Sharpest Drop in Over a Year

1. Dick’s Sporting Goods to Acquire Foot Locker for $2.4 Billion

Dick’s Sporting Goods Inc. has agreed to acquire Foot Locker Inc. in a $2.4 billion deal, uniting two athletic retail chains that have both been affected by President Donald Trump’s sweeping trade tariffs.

Under the terms of the agreement, Dick’s will pay $24 per share in cash for Foot Locker, representing an 86.5% premium over Foot Locker’s Wednesday closing price. Foot Locker shareholders may also opt to receive Dick’s stock instead of cash.

The transaction values Foot Locker’s equity at $2.4 billion and places its enterprise value at $2.5 billion, the companies said in a joint statement.

Foot Locker shares surged as much as 83% in premarket trading on Thursday following the announcement. Meanwhile, shares of Dick’s Sporting Goods fell by up to 13%, reflecting investor concern over the company’s largest acquisition to date.

Though both retailers are heavily reliant on sneaker sales, they operate with distinct formats: Foot Locker runs around 2,400 mostly mall-based stores across 20 countries, while Dick’s operates approximately 800 large-format suburban stores across the US.

The merger seeks to consolidate retail footprints and optimize operations amid ongoing supply chain disruptions and cost inflation tied to Trump’s tariff policies.

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2. US Retail Sales Growth Slows Sharply in April

US retail sales slowed sharply in April, signaling that consumers curtailed spending on cars, sporting goods, and other largely imported items amid growing concern over price hikes fueled by tariffs.

Retail sales, unadjusted for inflation, rose just 0.1% last month following a revised 1.7% gain in March, according to Commerce Department data released Thursday. Excluding autos, sales saw only a slight uptick.

Out of the 13 major retail categories, seven posted declines, including apparel — heavily dependent on imports — and gasoline. Auto sales dipped after a buying surge in March, while restaurant and bar spending, the report’s only service category, rose strongly for the second consecutive month.

The data suggest that after a wave of front-loading purchases to avoid President Donald Trump’s new tariffs, consumers are now tightening spending — a shift that could stoke concerns about slower economic growth. Businesses, economists, and investors remain cautious as consumer sentiment deteriorates.

Control group sales — a key metric used to calculate goods spending in GDP — declined 0.2% in April, signaling a weak start to the second quarter. This measure excludes food services, auto dealers, building materials, and gas stations.

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3. NJ Transit Strike Looms, Threatening Widespread Disruption for Commuters

New Jersey Transit is facing a potential shutdown as train engineers prepare to strike as early as Friday, marking what could be the state’s first rail strike in more than four decades. The dispute centers on stalled wage negotiations between the agency and the Brotherhood of Locomotive Engineers and Trainmen.

NJ Transit, which supports over 925,000 weekday trips, has issued a warning for riders to prepare for major service interruptions and advised commuters to work from home if possible. However, that advice directly contradicts strict return-to-office mandates enforced by major employers across New York City, including JPMorgan Chase, Citigroup, Amazon, Goldman Sachs, and BlackRock.

The impact would be particularly severe for workers who must be physically present, such as teachers and healthcare staff. Memorial Sloan Kettering Cancer Center has already alerted patients to potential delays, advising them to check alternative travel options or reschedule non-urgent appointments.

The strike could also affect thousands attending events like concerts, including a scheduled Shakira performance.

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4. Trump Pressures Apple to Halt iPhone Production in India

President Donald Trump said he urged Apple CEO Tim Cook to stop building manufacturing plants in India for devices sold in the U.S., pressuring the tech giant to boost domestic production instead. The comments were made during Trump’s state visit to Qatar, where he revealed a direct conversation with Cook.

“I had a little problem with Tim Cook yesterday,” Trump said. “He is building all over India. I don’t want you building in India.” Trump added that Apple would be “upping their production in the United States” as a result of their discussion.

This public intervention poses a significant challenge to Apple’s ongoing strategy of diversifying its manufacturing base away from China. Apple had planned to import most U.S.-sold iPhones from India by late next year, a move driven by both tariff risks and geopolitical uncertainty.

Currently, Apple assembles the bulk of its iPhones in China and has no smartphone production in the U.S., although it has pledged $500 billion in domestic investment over the next four years.

Analysts say producing iPhones entirely in the U.S. would be extremely costly and logistically complex due to the lack of a local supply chain and high labor costs. In contrast, India offers both state subsidies and a rapidly growing market, making it a vital hub for Apple’s global ambitions.

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5. UnitedHealth Plunges Amid Report of DOJ Criminal Medicare Fraud Probe

UnitedHealth Group Inc. shares plummeted as much as 18% Thursday following a report that the U.S. Department of Justice is conducting a criminal investigation into the insurer’s Medicare Advantage operations. According to the Wall Street Journal, the DOJ has been examining the case since at least last summer, citing unnamed sources.

UnitedHealth responded late Wednesday, stating it had not been informed of any such investigation by the DOJ. “We stand by the integrity of our Medicare Advantage program,” the company said in a statement.

This development caps a disastrous week for UnitedHealth, which had already seen shares fall more than 17% on Tuesday after the abrupt resignation of CEO Andrew Witty and the suspension of 2025 earnings guidance. Over the past eight trading days, UnitedHealth stock has fallen daily, wiping out more than $110 billion in market value.

The report did not specify the exact nature of the criminal allegations. Shares of other major health insurers also declined: Elevance Health fell as much as 4.5%, CVS Health dropped 2.6%, and Humana sank 5.8%.

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6. Thoma Bravo Exits Nasdaq Stake With $3.4 Billion Block Trades

Private equity firm Thoma Bravo has fully exited its investment in Nasdaq Inc., selling its remaining 7.4% stake in two unregistered block trades that generated approximately $3.4 billion, according to people familiar with the matter.

The firm offloaded about 43 million shares in total: 17.3 million shares at $77.90 per share on May 7, as per a U.S. SEC filing, and the remaining 25.5 million shares on May 13, sold to JPMorgan Chase & Co. at $80.68 per share. JPMorgan then re-offered the blocks to investors at slightly higher prices — around $78.20–$78.57 for the first and $81 for the second.

This marks the end of Thoma Bravo’s involvement in Nasdaq, capping off a multi-year investment period during which the private equity firm helped the company drive acquisitions and expand into new tech-focused market segments.

Nasdaq shares edged up 0.1% to $81 on Wednesday, giving the exchange operator a $46.6 billion market valuation.

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7. Canadian Home Prices See Sharpest Drop in Over a Year

Canadian home prices posted their biggest decline since November 2023, as rising economic uncertainty tied to President Donald Trump’s escalating trade war with global partners kept potential buyers on the sidelines.

The national benchmark home price fell 1.2% in April from the previous month to C$689,200 (US$492,850), according to data released Thursday by the Canadian Real Estate Association (CREA).

The downturn came just as Canada’s housing market typically enters its peak spring selling season. But this year, Trump’s aggressive tariff moves rattled consumer confidence, prompting a market slowdown and pushing up inventory.

“The risk going forward will be if an average number of people trying to sell their homes turns into a large number of people who have to sell their homes,” said Shaun Cathcart, CREA’s senior economist. “That’s something we have not seen in decades.”

Home sales dipped just 0.1% in April from the prior month, while new listings declined by 1%. However, supply continues to rise, with total homes for sale up 14.3% year over year, tilting market conditions further in favor of buyers.

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