Over the week, earnings reports from the US include Airbnb, AMD and Coinbase, Illuminate, Moderna, Pfizer, Robinhood, Starbucks, Uber, and Virgin Galactic.
BP PLC (LSE: BP), BT Group, GSK Next, Rolls-Royce and many other blue-chip shares in London mean that investors are busy this week.
There are expected rate increases from the US Federal Reserve Wednesday and the Bank of England Thursday. This raises many questions about the impact of these policy moves on the stock markets and economies.
The US earnings reports for the week include Airbnb (NASDAQ: ABNB), AMD and Coinbase.
MONDAY, 31 OCTOBER
Important announcements Monday: Finals Lok’n Store PLC
AGMs: Aberforth Split Level Income Trust PLC, Brown Advisory, US Smaller Companies, City of London Investment Group PLC, GSTechnologies Ltd, Springfield Properties PLC, Superdry PLC, Tavistock Investments PLC, Time Finance plc
Economic announcements: Consumer Credit (UK), Mortgage Approvals(UK), Mortgage Money Supply (UK), Mortgage Approvals, Mortgage Approvals (UK), Chicago PMI (US)
US earnings Monday by Arista Networks
TUESDAY, 1 NOVEMBER
BP PLC will release third-quarter results Tuesday, a week after Shell revealed softer but still substantial profits and shareholder returns.
August’s half-year results for BP were a record set. Analysts and investors will expect a drop in earnings after oil prices dropped about a quarter since June. However, general shareholder returns can still be expected ( , as detailed in the full BP preview).
Rentokil Initial PLC will provide an update to follow up on half-year results that saw organic revenue grow ex-disinfection by 7.3. with Pest Control at +5.6%, Hygiene & Wellbeing at +10.0%, France Workwear at +16.0% and fully offset input inflation with pricing.
Peel Hunt, the broker, anticipates strong organic revenue growth ex–disinfection, ongoing success in pricing to protect margins, and continued improvements through increased scale, density, and a rise in the PBT currency tailwind, £10-20m, as approximately 90% of revenue is outside the UK.
Pfizer Inc (NYSE: PFE) will be one of the US earnings reports. Full-year revenues are expected to reach a record US$102bn this fiscal year due to price increases, the Covid vaccine, and the new Covid pill.
Pfizer shares fell to a one-year low in August after its July second-quarter numbers. This was due to concerns about lower demand for its Covid products as well as a lacklustre pipeline.
Important announcements on Tuesday
Trading updates: IWG PLC (LSE: IWG), Rentokil Initial, TP ICAP Group PLC
Interims: BP PLC, NCC Group PLC (LSE: NCC)
AGMs JPMorgan, Mid Cap Investment Trust PLC, Murray Income Trust plc, OPG Ventures PLC (AIM: OPG ), Vietnam Holding Ltd
Economic announcements PMI Manufacturing UK, PMI Manufacturing USA, Construction Spending USA), ISM Manufacturing USA, ISM Prices Paid US
US earnings Tuesday Eli Lilly and Co. (NYSE:LLY), Newmont Corp., Pfizer Advanced Micro Devices. Mondelez. (NASDAQ:MDLZ). Uber Technologies
WEDNESDAY 2 NOVEMBER
GSK PLC (LSE: GSK), had hoped that spinning off Haleon, its consumer household arm, would result in an immediate re-rating at a high-powered US pharma level. It has been sorely disappointing.
The shares have not moved much since the separation. However, next week’s results will give an even clearer picture of the new GSK’s position in the pharma league table
Next (LSE: NXT) will update the market on Wednesday with a third-quarter trading statement. Investors will hope for no further profit warnings from high-street royalty.
The FTSE 100 retailer retracted its guidance for a full-year profit before tax in its interim results, which were released at the end of September
Some caution will set the mood for stock markets today ahead of the US Federal Reserve decision later.
Important announcements on Wednesday
Trading updates: Gem Diamonds Ltd, Hiscox PLC, Morgan Sindall Group PLC, Next PLC, Rentokil Initial PLC, Smurfit Kappa Group plc, Weir Group PLC.
Interims: Appreciate Group, GSK PLC, Novo Nodisk PLC, Wizz Air Holdings PLC.
AGMs: Hansard Global (LSE: HSD) PLC, IDE Group (AIM: IDE) Holdings PLC, NCC Group PLC
Economic announcements Federal Reserve decision (US), MBA Mortgage Applications(US), Crude Oil Inventories(US)
US earnings Wednesday The Estee Lauder Companies Liberty Global (NASDAQ LBTYA)Class A, Qualcomm Inc, Robinhood Markets Inc, Roku Inc
The @federalreserve and @bankofengland will be in the investor spotlight this coming Wednesday 🇺🇸 interest rate by 75 basis points, and then again in December and Thursday 🇬🇧 #BoE markets forecast a 75bps rate hike and an eventual rate peak at 4.75%. https://t.co/ixLP431P5L https://t.co/ofxkRbr0i1 pic.twitter.com/uT2LKnvFxr
— Share_Talk ™ (@Share_Talk) October 29, 2022
THURSDAY, 3 NOVEMBER
Rolls-Royce Holdings PLC will provide a quarterly update (LSE: RR). The update will reveal that the manufacturer of airline engines has shown signs of recovery after the pandemic.
The year saw an improvement in the underlying revenue, especially for civil aerospace and power systems markets ( view the complete Rolls preview).
BT Group PLC (LSE: BT.) Shares are climbing ahead of this week’s half-year numbers.
It appears that Patrick Drahi, a French billionaire, is on the shareholder list – and possibly the spin-off of BT Sport – is enough to offset the recent torrent of seemingly bad news. There have been stiffening competition in the UK telecoms industry, concern about rising interest rates due to BT’s massive debt pile, ongoing staff pay dispute and alarms for its pension fund. A fine was also imposed on its accountant for failings in the audit
J Sainsbury PLC (LSE: SBRY), Thursday’s first-half profits are expected to be near the bottom of the guidance range for the supermarket chain, which includes modest sales growth and tighter margins.
According to ONS retail sales figures, recent evidence suggests that shoppers are spending more than expected. This is bad news for Argos and its own brand of homeware, according to one analyst
After the disastrous Liz TrussKwasi Kwarteng fiscal fiasco, the Bank of England will announce its first policy decision.
There is much debate about how much the Bank’s Monetary Policy Committee will raise interest rates. This happens despite still-rampant inflation, tight labour markets, and the shudders felt in the wider economy
While you are analyzing the US Fed decision markets the day before, be sure to look ahead at the US mid-term elections on the 8th of November.
Economists at ING said that with polls shifting in the direction of a Republican-controlled Congress, this will greatly limit what President Joe Biden can achieve in the second half of his presidential term.
This will reduce government influence on the economy. It will also put pressure on Fed to lower rates in the second quarter of 2023 to support it. Nothing will come from the fiscal end.
Important announcements on Thursday
Trading updates: Derwent London PLC, Hikma Pharmaceuticals PLC, Howden Joinery Group PLC, Lancashire Holdings PLC, Rolls-Royce Holdings PLC, Smith & Nephew PLC, TI Fluid Systems PLC.
Interims: Barrick Developments PLC, BT Group PLC, Helios Towers PLC, Lancashire Holdings PLC, Nuformix PLC, RS Group PLC, J Sainsbury PLC, RS Group PLC, Trainline PLC.
Finals: Gattaca PLC, UP Global Sourcing Holdings PLC.
AGMs: Darktrace PLC (LSE: DARK)
Ex-dividends for reducing FTSE 100 by: 6.18 points (Shell PLC Whitbread).
Economic announcements: PMI Composite, UK, BoE Interest Rate Decision (UK), BoE Intensity Rate Minutes (UK), Continuing Claims(US), Initial Jobless Claims(US), PMI Composite(US), PMI Services/US), Factory Orders/US), ISM Price Paid (US), ISM Services/US)
US earnings Thursday Ball Corp, Barrick Gold Moderna, Amgen Block Inc, Illumina, PayPal Holdings, Starbucks Corp,Twilio, Virgin Galactic
FRIDAY 4 NOVEMBER
It is possible that there may be a sense of ‘after-the-lord major’s-show’ for the US non-farm payrolls, which are normally very important and will be released on Friday after the Fed meeting earlier in the week.
Despite concerns about slowing consumer spending and higher costs for some US businesses, the US job market has held up well.
This is despite recent earnings reports indicating that large companies have reported job losses.
The number of job vacancies is high. Weekly jobless claims are still low at 230k per week.
September’s NFP payroll numbers were solid at 263,000. The unemployment rate dropped to 3.5% partly due to a decrease in participation, and wage growth fell to 5%.
Michael Hewson, CMC Markets, stated that “this continues to be a puzzle considering the continuing rising cost of living” and the fact that it is 1% lower than it was pre-pandemic. He also noted that wage growth was not ripping up any trees at this year’s lowest level.
“The expectation is for a slowdown in job growth to 200k, which would be the lowest this year. The unemployment rate will also tick back up to 3.6%.”
Important announcements Friday
Trading updates: 4imprint Group Plc, Morgan Advanced Materials plc, TBC Bank Group PLC
Interims: Apax Global Alpha PLC
AGMs: Celtic PLC, DFS Furniture PLC (LSE: DFS)
Economic announcements PMI Construction (UK), US Non-farm Payrolls, US Unemployment Rate (US).
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