DKS Gains 2.17% on $250M Volume Spike to 461st Rank Amid Antitrust Scrutiny of $2.4B Foot Locker Takeover

On August 6, 2025, Dick's Sporting Goods (DKS) closed with a 2.17% gain, driven by a 48.28% surge in trading volume to $0.25 billion, ranking it 461st in market activity. The stock's performance coincided with renewed scrutiny over its $2.4 billion proposed acquisition of Foot Locker. U.S. Senator Elizabeth Warren (D-Mass.) urged the Federal Trade Commission and Department of Justice to block the merger, citing antitrust risks. She warned the deal could reduce competition in the athletic footwear sector, elevate prices for consumers, and undermine smaller retailers. The transaction faces regulatory uncertainty amid shifting enforcement priorities under the Trump administration, which has already approved previously blocked deals like Nippon Steel’s acquisition of U.S. Steel.

Warren’s letter highlighted concerns that the combined entity and JD Sports, a UK-based rival, could dominate 5,000 U.S. athletic shoe stores, squeezing independent retailers. She emphasized the economic strain on families already grappling with rising back-to-school costs, noting that higher footwear prices could exacerbate financial hardship. Antitrust experts like former FTC merger reviewer Amanda Lewis remain cautiously optimistic, suggesting the deal is unlikely to trigger major regulatory hurdles given the combined market share of around 15%. However, potential divestitures of stores to preserve local competition remain a possibility under either administration.

The strategy of purchasing the top 500 stocks by daily trading volume and holding for one day delivered a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. This underscores the role of liquidity concentration in short-term stock performance, particularly in volatile markets. High-volume stocks benefit from greater trading activity, enabling investors to capitalize on fleeting price movements. While the approach highlights liquidity-driven market dynamics, it also underscores the inherent risks of short-term trading, including exposure to abrupt sentiment shifts and market volatility.