API BP (LSE: BP.)BT Group, GSK, Next and Rolls-Royce, and many more, mean it’s another busy week for investors in London’s blue chip stocks.
Elsewhere, rate hikes are expected from the US Federal Reserve on Wednesday and the bank of england Thursday, with many questions about the duration of these policy measures and their effects on economies and stock markets.
Among the US earnings reports during the week are Airbnb (NASDAQ:ABNB)AMD, Coinbase, Illumina, Moderna, Pfizer, PayPal, Robinhood, Starbucks, Uber and Virgin Galactic.
MONDAY OCTOBER 31
Important Announcements Monday
Finals: Lok’n Store PLC
AGM: Aberforth Split Level Income Trust PLC, Brown Advisory US Smaller Companies, City of London Investment Group (AIM: CLIG) automaton, GSTechnologies Ltd (LSE: GST), Springfield Properties PLC (AIM: SPR), API Superdry (LSE: SDRY), Tavistock Investments PLC (AIM: TAVI), Time Finance plc (AIM:TIME)
Economic announcements: Consumer Credit (UK), M4 Money Supply (UK), Mortgage Approvals (UK), Chicago PMI (USA)
US results Monday: Arista Networks
TUESDAY 1 NOVEMBER
BP PLC will release its third-quarter results on Tuesday a week after rival Shell reported weaker but still massive earnings and shareholder returns.
BP’s half-year results in August were exceptional, but investors and analysts are expecting a drop after oil prices have fallen by around a quarter since June – although broad shareholder returns are still expected (as detailed in the full BP overview).
Elsewhere, there will be an update from Rentokil Initial PLC following its half year which saw organic revenue growth excluding disinfection of 7.3. with Pest Control +5.6%, Hygiene & Well-Being +10.0%, France Workwear +16.0%) and completely offset the inflation of inputs with prices.
For the 3rd quarter, the broker Peel Hunt forecasts solid and continued organic growth in revenues excluding disinfection; continued success in managing cost inflation through pricing to protect margin, while continuing to drive improvements through increased scale and density; and an increase in the PBT currency tailwind from £10m to £20m, as around 90% of revenue comes from the UK).
On the other side of the pond, Pfizer Inc (NYSE: PFE) will be part of earnings reports in the United States, with annual revenue expected to reach a record US$102 billion for the drug colossus this fiscal year, following rising prices, the Covid vaccine and his new Covid pill.
Since its second-quarter numbers in July, Pfizer shares have fallen back to a one-year low last month on fears we may see a drop in demand for its Covid products and a lack of new excitement in its pipeline.
Important announcements this Tuesday
Business Updates: API IWG (LSE:IWG)Rentokil Initial, TP ICAP Group PLC
Interims: BP PLC, NCC Group PLC (LSE: NCC)
AGM: JPMorgan Mid Cap Investment Trust PLC, Murray Income Trust plc (LSE: MUT), OPG Power Ventures PLC (AIM:OPG)Vietnam Holding Ltd
Economic announcements: Manufacturing PMI (UK), Manufacturing PMI (US), Construction spending (US), ISM manufacturing (US), ISM Prices paid (US)
US results Tuesday: Eli Lilly and Co (NYSE:LLY)Newmont Corp, Pfizer, Advanced Micro Devices, Airbnb, Mondelez (NASDAQ:MDLZ)UberTechnologies
WEDNESDAY NOVEMBER 2
Whether GSK PLC (LSE: GSK, NYSE: GSK) hoped that the split of its domestic consumer arm Haleon in July would lead to an instant revaluation to a supercharged US pharmaceutical level, it must be deeply disappointed so far.
The shares have barely moved one way or the other since the split, but next week’s results should give a clearer picture of the new GSK’s place in the pharmaceutical industry rankings (as explored in more detail in the GSK overview).
Next API (LSE:NXT) will also update the market with a third-quarter trading statement on Wednesday, and investors will hope there are no more high street royalty profit warnings.
In its interim results released at the end of September, the FTSE 100 retailer reversed its full-year pre-tax profit forecast, slashing it by £20m to £840m (as features in the following full preview).
Stock market sentiment for the day will be defined by some caution ahead of the US Federal Reserve’s decision later.
Important Announcements Wednesday
Business Updates: Gem Diamonds Ltd, Hiscox PLC, Morgan Sindall Group PLC (LSE: MGNS)next automaton, initial Retonkil automaton, Smurfit Kappa Group plc (LSE: SKG), Weir Group PLC (LSE: WEIR)
Interims: Enjoy Group PLC (LSE:APP)GSK API, Novo Nodisk API, Wizz Air Holdings PLC (AIM: WIZZ)
AGM: Hansard Global (LSE:HSD) automaton, IDE Group (AIM:IDE) Holdings PLC, NCC Group PLC
Economic announcements: Federal Reserve Decision (USA), MBA Mortgage Applications (USA), Crude Oil Inventories (USA)
US results Wednesday: The companies Estée Lauder, Esty Inc, Liberty Global (NASDAQ:LBTYA) Class A, Qualcomm Inc, Robinhood Markets Inc. (NASDAQ: HOOD), Roku Inc. (NASDAQ: ROKU)
THURSDAY NOVEMBER 3
A quarterly update of Rolls-Royce Holdings PLC (LSE: RR.) is expected to reveal that the aero-engine maker has continued its gradual signs of recovery after its lull during the pandemic.
Underlying revenue improved throughout the year, particularly for the electrical systems and civil aerospace markets (see full Rolls preview).
BT Group PLC (LSE: BT.A) shares climbed higher ahead of this week’s half-year figures.
It seems that the presence of French billionaire Patrick Drahi in the shareholder register – and perhaps the split of BT Sport – is enough to offset the last few months alone which have seen a torrent of bad news apparently: tougher competition in the market British telecoms, concern over rising interest rates with BT’s huge debt load, an ongoing dispute over staff pay, scares for its pension fund and a fine for its accountant for audit failures (read the overview of BT interims here).
Earnings for the first half of J Sainsbury PLC (LSE: SBRY) On Thursday, they are expected to be at the bottom of the supermarket chain’s forecast range, between modest sales growth and tighter margins.
Recent evidence via ONS retail sales figures indicates shoppers are tightening their belts more than expected, which does not bode well for own brand homewares and Argos ranges, an analyst has said. (in the full SBRY preview).
The Bank of England will make its first policy decision since being forced to intervene in bond markets after the calamitous Liz Truss-Kwasi Kwarteng tax fiasco.
Unlike the Fed, there’s a big debate about how much the Bank’s Monetary Policy Committee will raise interest rates — one-half, three-quarters, or even a full percentage point — in the midst of inflation. still rampant and a tight labor market, but the chills are felt in the housing market and economy at large (see BoE and Fed overview here).
While reflecting on the Fed’s decision the day before, markets are also anticipating the following week’s US midterm elections, which will be held on November 8.
ING economists said with polls moving in the direction of a Republican-controlled Congress, this will severely limit what President Joe Biden can achieve in the second half of his presidential term.
“It means less government influence on the economy and will put more pressure on the Fed to cut rates in the second half of 2023 to support the economy, because nothing will come from the fiscal side.”
Important Announcements Thursday
Business Updates: Derwent London PLC (AIM: DLN), Hikma Pharmaceuticals PLC (LSE: HIK, OTC: HKMPF), Howden Joinery Group (LSE: HWDN) PLC, Lancashire Holdings PLC, Rolls-Royce Holdings PLC, Smith & Nephew PLC (LSE:SN), TI Fluid Systems PLC (LSE: TIFS)
Interims: Barrick Developments PLC, BT Group PLC, Helios Towers PLC (LSE: HTWS)Lancashire Holdings PLC, Nuformix PLC (LSE: NFX), RS Group PLC (LSE: RS1)J Sainsbury PLC, RS Group PLC,Trainline PLC (LSE:TRN)
Finals: Gattaca PLC (AIM: GATC), UP Global Sourcing Holdings PLC (LSE: UPGS)
Ex-dividends to reduce the FTSE 100 by: 6.18 points (Shell PLC, Whitbread)
Economic announcements: PMI Composite (UK), BoE Interest Rate Decision (UK), BoE Interest Rate Minutes (UK), Continuing Claims (US), Initial Jobless Claims (US), PMI Composite (US), PMI Services (US), Factory Orders (US), ISM Prices Paid (US), ISM Services (US)
US results Thursday: Ball Corp, Barrick Gold, Moderna, Amgen, Block Inc (NYSE:SQ)Coinbase Global, Illumina, PayPal Holdings, Starbucks Corp (NASDAQ: SBUX)Twilio, Galactic Virgo
FRIDAY NOVEMBER 4
There may be some “after the lord major’s show” sentiment for the normally very large US non-farm payrolls coming out on Friday, after the Fed meeting earlier in the week.
The US job market continued to hold up well despite concerns about slowing consumer spending and rising costs from some US businesses.
This is despite reports of job losses from some large companies, including in recent earnings reports.
Job vacancies remain high, with weekly jobless claims remaining at a low 230,000 per week.
The September NFP payroll count was a solid 263,000, while the unemployment rate fell to 3.5%, partly due to a decline in the participation rate, while wage growth fell at 5 %.
“It continues to be a headache given the continuing rise in the cost of living and the fact that it is 1% below pre-pandemic levels,” said Michael Hewson of CMC Markets, noting that wage growth was tearing down virtually no trees at its lowest level this year.
“Job growth is expected to slow further to 200,000, which would be the lowest number this year, as well as an unemployment rate rising to 3.6%.”
Important Announcements Friday
Business Updates: 4imprint Group Plc (AQSE: FOUR), Morgan Advanced Materials plc (LSE: MGAM), Bank to be confirmed (LSE: TBCG) Group automaton
Interims: Apax Global Alpha PLC
AGM: Celtic PLC, DFS Furniture PLC (LSE: DFS)
Economic announcements: Construction PMI (UK), Non-farm Payrolls (US), Unemployment rate (US)
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