Retailers continue to update their holiday performance in the coming weeks, as well as many Wall Street banks, housebuilders, and recruiters. They include Marks & Spencer and Tesco.
The US earnings season begins Friday, with JP Morgan, Citigroup, Bank of New York, Wells Fargo and the investment giant BlackRock.
The major news for macroeconomics lovers will be the US inflation numbers on Thursday. For the UK, it will be a GDP update Friday with details on industrial and service sectors as well as trade data.
MONDAY 9 JANUARY
The City diary is quiet Monday, but the first housebuilder sets up a foundation for the next days.
The wider sector has been affected by concerns about mortgage rates, consumer budgets, and other issues, but Cairn Homes plc (LSE: CRN), based in Ireland has performed somewhat differently in terms of share prices, with a decline of 17% over one year, less than half of its UK counterparts.
It pledged “significant shareholder returns” for the next year in September after claiming first-half profits that more than tripled following its highest-ever sales performance.
The mid-cap housebuilder anticipates that demand for its new homes will remain strong into 2023. It reported a current closed sales pipeline of more than EUR760mln.
Important announcements Monday
Trading updates: Cairn Homes plc, Intermediate Capital Group.
AGMs Premier African Minerals Limited
Economic announcements Consumer Credit (US).
TUESDAY, 10 JANUARY
After the news from Next and B&M over the past week, Tuesday will see the retail sector newsflow begin to drip out again.
Neben Shoe Zone PLC (AIM: SHOE), there will be a tabletop gaming chain Games Workshop PLC. This is more of a leisure than a retailer.
GAW shares rose 25% in the month following the signing of a major Warhammer rights agreement with Amazon. However, profits are expected to be flat for half the year despite higher revenues.
Important announcements on Tuesday
Finals Shoezone PLC
Interims: Games Workshop Group PLC
Trading updates: RS Group PLC, Robert Walters
AGMs: Wishbone Gold PLC
Economic announcements – BRC Retail Sales (UK).
WEDNESDAY, 11 JANUARY
Sainsbury PLC will report on Wednesday a third-quarter update. This follows what appears to have been a solid Christmas according to industry data. Margins will dominate this week’s update by the grocer.
JD Sports Fashion is another retailer that will be in focus. Investors are anticipating positive news with shares up 14% over the week.
Peel Hunt analysts predicted that the trends of the first half would “probably broadly continue” in the second. While is expected to be “at minimum solid” in January, shares have been discounting negative news.
Barratt Developments PLC (LSE: BDEV) will report from the other blue-chip builders. This is a change of pace that has been quite melancholy since October’s last update, which indicated a significant drop in housing reservations.
Investors and analysts will be looking to see completed sales figures, comments on house prices and cladding remediation cost estimates, and information about the troubled Croydon Cityscape.
Important announcements on Wednesday
Trading updates: Barratt Developments PLC, Grafton Group PLC, JD Sports Fashion PLC, PageGroup PLC, Sainsbury PLC; Ten Entertainment Group PLC, Topps Tiles PLC, Vistry Group PLC.
AGMs AB Dynamics PLC, ASOS PLC, Induction Health Group PLC.
Economic announcements – MBA Mortgage Applications (US), Crude Oil Inventories(US)
THURSDAY, 12 JANUARY
On Thursday, several retailers will update the market, including Marks and Spencer Group PLC, DFS, Halfords and Tesco.
M&S’ shares plunged back to their lowest levels last year, but it was still on the rise since autumn. One analyst suggested “a lot” of the recent pessimism.
Tesco PLC, (LSE: TSCO) has, however, not experienced as much pain as its upmarket counterpart.
Goldman Sachs forecasted that the shares of the number-one supermarket chain could see a boost in the new year, based on recent positive data from the UK sector.
Tesco has “more upside” potential, with its current valuation “compelling”, even though other analysts were less bullish.
ASOS PCL (LSE: ASC) will include a trading statement for four months ending 31 December. This completes a year in which shares fell over 70%.
Investors will no doubt be interested in the performance of the online clothing retailer during the festive season and whether it was capable of providing some relief. Analysts have different levels of scepticism.
Important announcements on Thursday
Trading updates: ASOS PLC, Dechra Pharmaceuticals PLC, DFS Furniture PLC, Gym Group PLC, Halfords PLC, Marks & Spencer Group PLC, Persimmon PLC, Tesco PLC, Whitbread PLC, Wood Group PLC
AGMs JPMorgan Japanese Investment Trust PLC and Northern Venture Trust PLC
Economic announcements: Continuing Claims (US), Consumer Price Index (US), Initial Jobless Claims(US)
FRIDAY 13 JANUARY
Friday will be the start of the US earnings season with reports from Wall Street giants JPMorgan Chase and Citigroup.
Analysts predict that the US banks will experience another quarter of negative earnings growth, before returning to earnings growth during the current quarter.
Important announcements Friday
Interims: MJ Gleeson (LSE: GLE)
Trading updates: Taylor Wimpey PLC (LSE: TW)
Economic announcements: Import and export price Indices (US), U. of Michigan Confidence (US), Balance of Trade, UK), Gross Domestic Product(UK), Index of Services/UK), Industrial Production (UK), Manufacturing Productions (UK)
US earnings JP Morgan Chase. Wells Fargo. Citigroup. Bank of New York Mellon. Delta Air Lines. (NYSE: DAL).
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