The Week Ahead: Ocado, easyJet, Royal Mail

TL;DR

The US stock market had a positive week due to improved sentiment and cooler than expected inflation readings, with a soft landing predicted. Three stocks to watch next week are Ocado, Royal Mail, and EasyJet.

Transcript

foreign ER head of markets and Welcome to our look ahead for the week commencing the 17th of July it's been a fairly positive week for U.S stocks in particular there have been a couple of cooler than expected inflation readings which is basically now getting us to a situation where a soft Landing is being priced in there's still resilience across t... Read More

Key Insights

• 😎 Cooler than expected inflation readings and resilience in the labor market have contributed to the positive sentiment in the US stock market.
• 👨‍💼 Ocado's growth plans, particularly its solutions business, are causing concerns among investors.
• 💌 Royal Mail has performed relatively well despite strike actions and negotiations with unions, but the decline of the letters market is worth monitoring.
• 🙈 EasyJet's stock has seen significant gains due to the easing of travel restrictions and increased holiday bookings.

Questions & Answers

Q: What factors contributed to the positive sentiment in the US stock market?

The US stock market saw positivity due to cooler than expected inflation readings, resilience in the labor market, and no signs of overextension in the economy despite interest rate rises.

Q: Why are there concerns about Ocado's growth plans?

While its joint venture with Marks and Spencer is not a concern, there are worries about the growth plans of Ocado's solutions business, including the use of robotics and the recent slowdown in international deals.

Q: What should investors look out for in Royal Mail's first-quarter update?

Investors should pay attention to the performance of the parcels market, the impact of strike actions and ongoing union negotiations, and the growth of the international parcel business (GLS).

Q: What are some key factors contributing to EasyJet's positive performance?

EasyJet's positive performance is attributed to the easing of travel restrictions, increased holiday bookings, and the overall recovery of the airline industry.

Summary & Key Takeaways

• US stocks had a positive week due to cooler than expected inflation readings and resilience in the labor market.

• Ocado's half-year numbers will be released, and concerns surround the growth potential of its solutions business.

• Royal Mail will provide a first-quarter update, with attention on the performance of its parcels market and international business.

• EasyJet's quarter three numbers are anticipated, following the easing of travel restrictions and increased holiday bookings.