Nike stopped shipping popular sneakers to Foot Locker last year because the retailer reduced orders for high-priced sneakers.
Foot Locker fell US$0.40 to US$13.10. Merrill analyst Virginia Genereux said fewer Nike orders means the retailer may not be receiving any products related to athletes including LeBron James, the top pick in the National Basketball Association's draft.
Genereux cut Nike and Foot Locker to "neutral" from "buy." Traders said corporate executives may be more optimistic about the economy's prospects because they are planning more acquisitions.
Circuit City Stores Inc recorded the biggest advance in the S&P 500 this week after Mexican billionaire Carlos Slim made a US$1.5 billion offer to buy the firm. Its shares jumped 18 percent for the week even as the company rejected the offer because it was too low.
New York Community Bancorp agreed to buy Roslyn Bancorp Inc for about US$1.58 billion in stock to form the third-largest New York savings and loan by assets.
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