Equity markets are muted this morning, following a quiet session in Asia. The Bank of Japan meeting overnight was a non-event, as the central bank reaffirmed its commitment to keeping monetary policy loose, despite speculation it could move towards a tighter monetary policy.
Just Eat (LON:JE) shares are in the red after the company raised its revenue forecast, but kept its profit prediction unchanged. The group now expects revenue to be between £740 million and £770 million, while the previous guidance was between £660 million and £700 million. The capital expenditure projection was also upped to between £55 million and £60 million, compared with the previous guidance of £50 million. Tough competition from Deliveroo and UberEats has prompted Just Eat to ramp up capital expenditure. Revenue for the first six-months jumped by 45.3%, so it is clear the expansion plans are paying off. The stock has been moving higher since April, and if the broadly positive run continues, it could target 900p.
BP (LON:BP) shares are in demand on the back of solid figures. Third-quarter underlying replacement cost profit jumped to $2.8 billion, topping analysts’ forecasts of $2.7 billion. The firm also raised its dividend by 2.5% – its first hike in four years. The oil giant will also be boosting shareholder returns via a $6 billion share buyback. Its net debt position dropped marginally too, and this will also be welcomed by shareholders.
Dixons Carphone (LON:DC) confirmed that as many as 10 million customer records were hacked. While the security breach happened in 2017, it is worth noting that the company also had a security breach last month. The group reiterated that the records did not contain any bank account or payment card details. The CEO, Alex Baldock, apologised again to customers, but the company might struggle to regain some customers’ trust.
EUR/USD edged up after the German unemployment rate remained at 5.2%, meeting consensus expectations.
AK Steel (NYSE:AKS) shares will be in focus today after the company released second-quarter earnings that failed to meet analysts’ estimates yesterday. Earnings per share came in at 18 cents, while the consensus estimate was 20 cents.
We are expecting the Dow Jones to open up 9 points at 25,315 and we are calling the S&P 500 up 4 points at 2,806.
DISCLAIMER: CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed.
No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. "