Today, it seems a degree of context is necessary. The market this morning is dominated by some eye-popping swings for stocks after Trump blinked first in his self-created tariff tsunami. The chaos saw US indices charge higher yesterday with the NASDAQ closing up 12% on the day, most of Asia followed suit overnight and Europe is racing out the blocks in early trade, too with the FTSE-100 up almost 500 points in the first few minutes.
Full year earnings from the supermarket giant were published this morning with the company noting adjusted operating profits up by more than 10% off a 3.5% uptick in sales. That will put management in the cross-haors when it comes to criticism over being fair to hard pressed consumers and the shift in sentiment is acknowledged here with the note conceding that profits for the current financial year won’t match up as competitors beat on value. So despite a £1.45bn share buy back and a 13% increase in the dividend, investors have been quick to sell down holdings. Amidst chaos globally, the domestic profile here had the potential to add stability but with this note calling the top of the cycle, the Tesco share price is down 4% in early trade.
International Consolidated Airlines
The owner of British Airways is back on the radar after its shares were showing gains of almost 30% just after the opening bell on Thursday. Trump’s tariffs had threatened a close on complete collapse in global trade and with the airline’s significant cargo operations to consider, the valuation was down almost a third since the early February highs. The order book still looks rater chaotic but at 8.30am the IAG share price is marked as 11% higher.
Some solid gains for the athleisure wear retailer this morning which is winning on several fronts. With a significant footprint of stores in the US, many selling footwear made in Asia, the suspension of most tariffs offers some respite. However, on top of this the company also announced a £100m share buy back as the stock trades at multi-year lows. This does need to balanced against the fact consumer uncertainty will still be running very high right now but investors are seeing the upside and the JD Sports share price was just over 10% up in early trade.
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