The Week Ahead: JD Sports, Whitbread, Barratt, Persimmon

TL;DR

Despite flat market performance, there are positive signs of recovery in global economies, but concerns remain about rising COVID-19 cases and upcoming corporate earnings reports.

Transcript

hello I'm Richard hunter head of markets and welcome to our look ahead for the week commencing the 6th of July it's been a fairly flat week for markets net net there's a number of push-pull factors to in play on the plus side of course we've got all the monetary and fiscal stimulus from central banks and governments around the world we've also had ... Read More

Key Insights

• 🤘 Global economies are showing signs of recovery, but challenges persist in certain sectors and geographies.
• 🫰 The performance of major indices varies, with the FTSE 100 lagging behind its counterparts.
• 😮 Rising COVID-19 cases in the U.S. are a cause for concern, potentially impacting market performance.
• ❓ Investors are cautious about upcoming corporate earnings reports and their potential impact on market sentiment.
• 😀 The UK economy faces multiple challenges, including GDP growth, the housing market, manufacturing, services sector performance, and the ongoing uncertainty around Brexit.
• 🤩 JD Sports, Whitbread, Barrett Developments, and Persimmon are key companies to watch for insights into their respective sectors.
• 🆘 Monetary and fiscal stimulus measures have helped support market performance and economic recovery.

Questions & Answers

Q: What factors have contributed to the flat market performance?

The market has been influenced by a combination of monetary and fiscal stimulus measures, signs of recovery in China's economy, retail sales remaining strong, and concerns about rising COVID-19 cases and upcoming corporate earnings reports.

Q: How have major indices performed this year?

The Dow Jones is down 9.5%, the S&P is down 3%, and the FTSE 100 is down 17% year-to-date. The Nasdaq, however, has experienced a 14% increase in value.

Q: Which companies' corporate numbers should investors look out for next week?

Investors should pay attention to the updates from JD Sports, Whitbread (now primarily Premier Inn), and house builders like Barrett Developments and Persimmon. These updates will provide insights into the performance of these companies, specifically in relation to store closures, hotel occupancy, and the housing sector.

Q: What challenges does the UK economy face?

The UK economy is grappling with issues related to GDP growth, housing market performance, manufacturing, the services sector, and the ongoing impact of Brexit. These factors contribute to the overall flat market performance seen recently.

Summary & Key Takeaways

• Global markets have remained relatively flat, with positive factors including monetary and fiscal stimulus, signs of economic recovery in China, and retail sales holding up well.

• Concerns include spikes in COVID-19 cases in the U.S., upcoming corporate earnings reports, and challenges in the UK economy, including GDP, housing, manufacturing, and Brexit.

• Major indices, such as the Dow Jones, S&P, and FTSE 100, have experienced varying levels of performance, with the FTSE 100 lagging behind.