Foot Locker stock surged due to tariff deal, but historical trends suggest possible pullback

From Yahoo Finance: 2025-05-13 11:50:00

Retail stock Foot Locker Inc (NYSE:FL) surged 10.6% on Monday due to a surprise deal between the U.S. and China to slash tariffs. FL is up 0.8% today, with an 8.7% increase in May. However, the stock still faces a 41.3% year-over-year deficit and a 38.7% year-to-date decrease, suggesting a possible pullback.

Foot Locker stock is approaching a historically bearish trendline, the 50-day moving average. Past data shows that in similar situations, the stock was lower one month later, averaging a 6.5% drop. If FL follows this trend, the shares could drop below $12.50, near their April 16 low of $11.

A shift in sentiment in the options market could further pressure Foot Locker stock. The 10-day put/call volume ratio of 14.77 is in the 96th percentile, indicating short-term options traders are unusually bullish. This optimism could create headwinds in case of a pullback.

Read more: Foot Locker Stock Rally Might Not Last