Proactive Investors -
- FTSE 100 113 points higher at 8,327
- BP (LON:BP) profits fall short
- Construction industry growing fast
Wall Street opens a tick higher
US stocks opened slightly higher on Tuesday as a number of company earnings and reports helped move some stocks in early trading.
The Dow Jones was up 32 points at 38,884, while the S&P 500 jumped 7 points to 5,188.
Meanwhile, the Nasdaq lifted 8 points to 16,357.
Disney shares slipped over 7.5% after it reported stronger-than-expected earnings as it continues its transformation plan.
Revenues for the second quarter of the House of Mouse's fiscal year increased to $22.08 billion from $21.8 billion a year earlier, roughly in line with analyst expectations.
Pre-tax income tumbled 69% to $657 million due to goodwill impairments of $2,052 million to its Star India and entertainment networks.
Shares in exercise bike maker Peloton (NASDAQ:PTON) shot up by more than 16% after reports revealed a number of private equity firms were circling the business.
Peloton was recently forced to undergo a restructuring plan to cut annual run-rate expenses by US$200 million by the end of next year, with its current CEO deciding to step down.
Households spend on TV subscriptions over eating out
Households are opting for subscriptions to Netflix (NASDAQ:NFLX) and other digital services over eating out, as new hit TV shows continue to drum up consumer interest.
Retail and fast food spending remained the same or fell backwards year-on-year in April, Barclays (LON:BARC) revealed after analysing user spending.
Meanwhile, digital content and subscription services experienced a 10.6% increase compared to 2023, with the success of newly released Netflix mini-series Baby Reindeer and Ripley being a key driver.
Restaurant spending fell by 13%, indicating consumers are still wary of overspending, with the potential for interest rates remaining higher for longer still a possibility.
Around half of Britain is believed to be concerned about how much they spend on food and drink, Barclays added.
Some 73% said they actively look out for ways to save cash when doing the weekly shop.
Bitcoin rises after string of volatile sessions
Bitcoin (BTC) lifted around 1% higher on Tuesday to US$63,742, but shifting rate expectations have played havoc on the world's largest cryptocurrency in recent trading sessions.
After plummeting to two-month lows at the tail end of last week, the world’s largest cryptocurrency flew no less than 6.4% higher on Friday, setting the stage for a strong weekend session.
The BTC/USD pair proceeded to fall 1.3% on Monday before a bullish engulfing candlestick pattern erased these losses this morning.
Investors appear encouraged by data released on Friday showing job growth that found the right balance of being strong enough to indicate a healthy economy, but not too strong to spark fears of further interest rate pains.
Wall Street to open flat
US stocks are set to open flat on Tuesday, with investors hoping it can find some more of the momentum which has pushed the indexes higher over the last four sessions.
Both the Dow Jones and S&P 500 are looking likely to edge marginally higher at 39,016 and 5,208 points respectively.
Meanwhile, the Nasdaq is positioned to open 20 points lower at 18,171.
David Morrison at Trade Nation said: "US stock index futures were a tad firmer in early trade on Tuesday, building on gains from the latter half of last week.
"Investors were relieved to wave goodbye to April which proved to be an unsettling one in terms of increased volatility.
"Sentiment soured significantly last month, following an uninterrupted rally since the end of October. But US stock indices have had a strong start to May and last week saw a couple of positive factors which contributed to the turnaround.
"The probability of the first interest rate cut has shifted back to September from November. On top of this, the possibility of two 25 basis point cuts this year has also risen."
UK in strong position ahead of GDP figures
Economists believe strong momentum from the UK's construction industry will add to the growing feeling the economy is recovering, placing it in a healthy position ahead of GDP figures on Friday.
EY UK chief economist Peter Arnold said: "Evidence of stronger activity in the construction sector comes on the back of similarly upbeat reports elsewhere in the economy, particularly from last week’s S&P Global services survey.
"After two years of stagnation, the economic recovery is becoming more established and is broadening.
"On Friday, the EY ITEM Club expects the Office for National Statistics (ONS) to report that GDP grew by 0.4% quarter-on-quarter in Q1. And though it’s still very early days, another solid increase in GDP in Q2 seems a feasible prospect."
GDP growth rates will be released at 7.00am on Friday.
Sales of Chinese-made Teslas tumble
Chinese-made Tesla sales slipped in April as the competition from domestic rivals continues to weigh heavily on demand for the group's EVs.
Some 62,167 of Tesla's China-made EVs were sold in April, slipping by 18% year-on-year and by 30.2% when compared with March.
Tesla models made in China are also shipped to markets in Europe, but a breakdown of the exports was not revealed.
It comes as Tesla continues to face intense pressure from Chinese rivals, who have been sucking up market share by selling EV models at cheaper price points.
New energy vehicle sales in China are expected to have hit 800,000 in April, rising by 33% compared to twelve months prior.
BYD, Tesla's largest rival, sold 312,048 passenger vehicles during the period, marking a 49% rise compared to 2023.
Oil prices slip on Isreal and Hamas peace talks
Oil prices fell on Tuesday as hopes for a ceasefire in the Gaza Strip grew ahead of a peace talk in Egypt later today.
Brent crude oil initially rose to US$84 a barrel after Israel turned down a ceasefire and sent tanks to Rafah, building on a 0.5% on Monday.
However, as reports revealed both Eygpt and Qatar were helping with talks for peace in the conflicting regions, oil prices slipped around 0.2% to US$83 a barrel.
West Texas Intermediate, the US-produced oil, also slipped 0.2% to US$78 a barrel.
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