FTSE 100 shares had some enjoyable final week as traders reconsidered the seemingly impression of Donald Trump’s commerce tariffs. Two particularly led the cost.

The Howden Joinery Group (LSE: HWDN) share price jumped a powerful 9.77%. Nonetheless, it’s nonetheless down virtually 8% over 12 months, after a tricky 2024.

Howden sells kitchens, joinery and {hardware} to tradesmen, so it’s been hit by the slowdown within the UK economic system and housing market.

How has it achieved it?

Final week’s rally was fuelled by a optimistic replace on 29 April. Trading was in keeping with expectations, with UK income up 2.6%. Markets have been impressed by its enlargement plans, because the board goals to open 20 to 25 new depots this 12 months and refurbish 60 extra. 

It additionally highlighted robust buyer take-up of its click-and-collect service and reaffirmed its give attention to supporting self-employed builders. A £100m share buyback is underneath means.

This marks an enchancment on February’s full-year outcomes, which confirmed revenue flat at £328m and income up simply 0.5% to £2.3bn. The board hit investor sentiment by warning of additional contraction within the UK kitchenS market in 2025.

The outlook appears brighter at this time, regardless of Trump. The place the Howden share price goes subsequent hinges on the broader UK economic system. 

It wants a UK rebound

If the Financial institution of England cuts rates of interest sharply to assist progress, that would spur housing exercise and kitchen refits. Labour’s promised constructing growth may assist, although I’m not satisfied its targets are reasonable.

One danger is that if Howden’s funding in depot enlargement and digital infrastructure fails to translate into stronger gross sales or margins, profitability may come underneath stress.

I’m all the time conscious of revenue takers after a nicely acquired set of outcomes. The trailing dividend yield is a modest 2.06%. Its price-to-earnings ratio of 17.7 is above the FTSE 100 common. Given at this time’s uncertainty, I’d have appreciated a less expensive entry level.

Shares in medical equipment maker Smith & Nephew (LSE: SN) have additionally had a powerful week, climbing 8.99%.

They’re up 9% over 12 months however this follows a protracted and dismal spell within the doldrums. The Smith & Nephew share price is down 28% throughout 5 years and nonetheless trades at a 10-year low.

I briefly held the inventory what looks like a trillion years in the past, and having learn that, I’m glad I offered once I did.

It isn’t low-cost both

Final week’s bounce was additionally triggered by a better-than-expected Q1 replace. Gross sales rose 1.6% to $1.41bn, or 3.1% stripping out foreign money strikes. 

US demand for hip and knee replacements led the way in which, serving to offset continued weak point in China. The corporate reaffirmed its full-year forecast of round 5% income progress and a margin push in the direction of 20%. Dealer Saxo reckons it’s comparatively proof against tariffs. We’ll see.

Smith & Nephew isn’t a ‘bargain’, with a price-to-earnings ratio slightly below 17. The two.63% yield is affordable, however nothing to write down house about. The enterprise is mid-way via a posh operational overhaul, and if financial savings or gross sales don’t materialise quick sufficient, investor endurance may put on skinny.

Administration has promised 2025 will mark the beginning of a extra significant turnaround. I’m not anticipating fireworks, however there’s an opportunity it may begin to reward shareholders once more.

A restoration? It’s doable. Simply possibly not stellar. I proceed to observe from the sidelines for now.