European markets open their doors to close inflation data, earnings and US news

Ocado shares drop after sales warning as cost of living pressures intensify

Ocado delivery trucks in London on January 21, 2022.

Mike Kemp | Pictures | Getty Images

British grocery delivery company okado He led early European stock losses after forecasting a slight dip in sales for 2022 and “close to break” earnings.

The company fell 13.05% in the first hour of trading. She said customers were choosing cheaper products and reducing the size of their baskets as the UK faced a problem Sharp rise in cost of living Many workers return to the office.

“As a result, the value of the average basket has fallen by 6% in the period, to £116, with a larger decline occurring later in the quarter during the peak summer holiday season,” the company said in a statement.

“Despite positive customer growth, accelerated trading of down and smaller baskets, especially over the past few weeks, means that we now expect to see slightly lower sales in FY22 and close to breakeven in EBITDA.”

– Jenny Reed

Unemployment in the UK has reached a 48-year low while real wages have fallen sharply

The UK unemployment rate fell to 3.6% in the three months to July, its lowest level since 1974.

Meanwhile, the economic inactivity rate 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 sickness appointments and students leaving the job market. The increasing tightening of the labor market may increase inflationary pressure and cause headaches for Bank of England.

Annual growth in real wages – factoring in inflation – excluding bonuses fell 2.8% in the three months to the end of July.

“It is understood that people will look to their employers for help during the cost-of-living crisis, while Andrew Bailey is hopeful that companies will not raise their salaries too quickly and compound inflation,” said Marcus Brooks, chief investment officer at Quilter Investors.

“However, the UK must brace for discontent among the public sector as payroll strikes continue as budgets are drained.”

– Elliot Smith

UBS plans to increase dividends; Stocks up in pre-market

UBS The Swiss bank said Tuesday that the group intends to increase its dividend by 10% to $0.55 per share, and expects its stake buybacks in 2022 to exceed $5 billion.

UBS shares were signaled to rise 1.2% in pre-market activity after what ZKB analyst Michael Klein called the surprising news.

Read more here.

– Reuters

Stocks on the go: Future up 5%, Ocado price down 12%

shares Future plc A 5.5% gain in early trading leads the Stoxx 600 Index after the British media company predicted that its full-year adjusted operating profit would come at the top of market expectations.

At the bottom of the European premier index, the British grocery technology company okado It fell more than 12% after warning of lower full-year sales as consumer inflation worsened.

CNBC Pro: Forget the oil – coal is hot right now. Here are 2 stocks to play with, according to the pro

Coal mining in Wyoming.

Brian Brainerd | Denver Post | Getty Images

Coal prices are at record levels, and market watchers see prices rising even more as a global energy crisis approaches.

“It’s almost like any company or all companies are buying,” analyst Peter O’Conner said of the booming coal sector, revealing his favorite stocks.

CNBC Pro subscribers can read more here.

– Xavier Ong

Wells Fargo says relief recovery likely to rebound bear market

The recent rally in stocks is likely to be another bear market bounce and investors should prepare for more volatility ahead, according to Wells Fargo.

“The year of execution, defensive outperformance, high shareholder payouts, and high-quality, low-value stocks remind investors of the hallmark of a bear market,” Zhao Ma, a global portfolio and investment strategist, wrote in a note Monday.

They added that such recoveries occur in almost every bear market and many of them reverse quickly, leaving investors with regret.

“Although a bear market bottom is difficult to anticipate, in the past, market bottoms were usually preconditioned by excessively pessimistic market sentiment and a sign of eventual improvement in the underlying economic or market issue,” Ma said. “We think we’re not there yet in either respect.”

In the meantime, Ma recommends investors look for defensive stocks with low volatility, high earnings and share repurchase returns. He also says that investors should look for high-quality names with profitability, leading market share, and reasonable market prices.

– Carmen Renick

US stock futures rose ahead of Tuesday’s CPI report

US stock futures rose on Monday night as Wall Street looked ahead to the August CPI report due to be released on Tuesday morning. The report will give investors an update on the state of inflation in the US and is one of the last data the Federal Reserve will see before its September meeting.

Dow Jones Industrial Average futures rose 55 points, or 0.17%. S&P 500 and Nasdaq 100 futures rose 0.18% and 0.21%, respectively.

– Carmen Renick

CNBC Pro: Do ​​you want to invest in real estate? These ETFs are among analyst favorites

Real estate investment trusts – or REITs – are back in the spotlight after a volatile year for many asset classes.

Analysts from Morgan Stanley and Citi are highlighting REITs from two sectors that they say can outperform the broader market, and remain resilient in a recession.

CNBC Pro subscribers can read more here.

– Weezin Tan

European markets: here are the opening calls

European shares are expected to open cautiously higher on Wednesday, along with British stocks FTSE The index saw 18 points higher at 7,560, Germany Dax 33 points higher at 13944, France CAC 40 It rose 18 points to 6616 and Italy FTSE MIB It rose 42 points at 23,029, according to data from IG.

Data releases include Eurozone preliminary unemployment data for the second quarter as well as the GDP for the second quarter. The latest UK inflation figures for July will be released as well as preliminary Dutch GDP for the second quarter.

Earnings come from Uniper, Carlsberg, Persimmon, Balfour Beatty, BAT and National Grid.

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