European markets open to close data, earnings and inflation news from the United States
Ocado shares fall after sell-off warning as cost of living pressures hit
Ocado delivery vans in London on January 21, 2022.
Mike Kemp | In pictures | Getty Images
British grocery delivery company Ocado led the first European stock losses after forecasting a slight decline in 2022 sales and ‘close to break-even’ profits.
The company slid 13.05% in the first hour of trading. He said customers were choosing cheaper products and reducing their shopping carts as the UK faced a steep rise in the cost of living and many workers returned to the office.
“As a result, the average basket value fell by 6% over the period to £116, with a larger decline later in the quarter during the peak summer holiday season,” the company said in a statement.
“Despite positive customer growth, the accelerating decline in sales and shrinking baskets, particularly in recent weeks, means that we now expect a slight decline in sales in FY22 and to an EBITDA close to break-even.”
UK unemployment hits lowest level in 48 years as real wages fall sharply
Unemployment in the UK fell to 3.6% in the three months to July, its lowest level since 1974.
The economic inactivity rate, meanwhile, rose 0.4 percentage points to a five-year high of 21.7%.
The Office for National Statistics attributed the change to an increase in long-term illness designations and students leaving the workforce. The growing tightness of the labor market could fuel further inflationary pressures and cause headaches for the Bank of England.
Annual real wage growth—adjusted for inflation—excluding bonuses fell 2.8% in the three months to end-July.
“People will naturally look to their employers for help during the cost of living crisis, while Andrew Bailey hopes companies don’t raise wages too quickly and make inflation worse “said Marcus Brookes, chief investment officer at Quilter Investors.
“However, the UK must prepare for public sector discontent with pay strikes continuing as budgets are stretched.”
UBS plans to increase its dividend; shares rise in pre-market
UBS Group plans to increase its dividend by 10% to $0.55 per share and expects its share buybacks in 2022 to exceed $5 billion, the Swiss bank announced on Tuesday.
UBS shares were listed up 1.2% in pre-market activity after what ZKB analyst Michael Klien called another surprise.
Learn more here.
Stocks in motion: Future up 5%, Ocado down 12%
Shares of Future Plc gained 5.5% in early trading to top the Stoxx 600 after the British media company forecast full-year adjusted operating profit to come in at the high end of expectations of the market.
At the bottom of Europe’s blue chip index, British grocery tech firm Ocado plunged more than 12% after warning of a full-year sales slump as consumers grapple with runaway inflation.
CNBC Pro: Forget oil — coal is hot right now. Here are 2 actions to play it, according to the pros
Coal mining in Wyoming.
Brian Brainerd | Denver Post | Getty Images
Coal prices are at record highs and market watchers see prices rising further as a global energy crisis looms.
“It’s almost like any or all companies are a buy,” analyst Peter O’Conner said of the booming coal sector, and revealed his favorite stock.
CNBC Pro subscribers can learn more here.
— Zavier Ong
Relief rally is likely a bear market bounce, says Wells Fargo
According to Wells Fargo, the recent relief rally in equities is likely another bear market bounce and investors should position themselves for more turmoil to come.
“Year-do-date, the outperformance of defensive, high-return, high-quality, low-valuation stocks reminds investors of the hallmark of a bear market,” wrote Chao Ma, global portfolio and investment strategist. , in a Monday note.
Such reversals occur in nearly every bear market and many are quickly reversed, leaving investors with regrets, they added.
“While it is difficult to predict the bottom of a bear market, in the past, market bottoms were generally preconditioned by overly pessimistic market sentiment and a sign of definite improvement in the economic or undervalued market problem. underlying,” Ma said. “We don’t think we’re there yet either way.”
In the meantime, Ma recommends investors look for defensive stocks with low volatility, high dividends and buyback yields. He also says that investors should go for high-quality names with leading profitability and market share and an affordable market price.
US stock futures rise ahead of Tuesday’s CPI report
U.S. stock futures were up Monday night as Wall Street eagerly awaits the August consumer price index report due out Tuesday morning. The report will give investors an update on the inflation situation in the United States and is one of the last data the Federal Reserve will see before its September meeting.
Dow Jones Industrial Average futures gained 55 points, or 0.17%. S&P 500 and Nasdaq 100 futures rose 0.18% and 0.21%, respectively.
CNBC Pro: Want to invest in real estate? These REITs are among analysts’ favorites
Real estate investment trusts – or REITs – are back in the spotlight after a volatile year for many asset classes.
Morgan Stanley and Citi analysts highlight REITs in two sectors they believe could outperform the broader market and remain resilient in a downturn.
CNBC Pro subscribers can learn more here.
European markets: here are the opening calls
According to IG data.
The data releases include preliminary eurozone unemployment data for the second quarter as well as gross domestic product for the second quarter. The latest UK inflation figures for July will be released along with the preliminary Dutch Q2 GDP.
Revenue comes from Uniper, Carlsberg, Persimmon, Balfour Beatty, BAT and National Grid.