Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

All Eyes On Powell, Levi’s Fall Out Of Fashion

By CMC Markets (David Madden)Market OverviewJul 10, 2019 16:24
All Eyes On Powell, Levi’s Fall Out Of Fashion
By CMC Markets (David Madden)   |  Jul 10, 2019 16:24
Saved. See Saved Items.
This article has already been saved in your Saved Items


Stocks are mixed as Jerome Powell, the head of the Fed, testifies in Washington D.C. So far the central bankers hasn’t give much away in terms of clues as to possible changes to monetary policy, although earlier in the day, he warned that uncertainties have continued. Some dealers are sitting on their hands until they get a clear view from Mr Powell.

Superdry (LON:SDRY) continues to struggle as the group revealed a 56% drop in full-year profit before tax. The decline in profit wasn’t a shock seeing as the group issued a profit warning in May – it’s third in 12 months. Revenue was largely unchanged on the year, and the fashion house predicts that revenue will slip on the year. Superdry has undergone major management shakeup this year, but it is confident it is taking the right measures to return the company to high profitability. In the mean-time, the outlook remains weak, as the retail market remain ‘uncertain’ and the business issues won’t be ‘resolved overnight’.

JD Wetherspoon (LON:JDW) are performing well as the company revealed that like-for-like (LFL) sales for the 10 weeks until early July jumped by 6.9%. Since the start of the financial year, the firm closed more pubs that it opened, and that is why total sales only increased by 6.6%. The wider industry has been struggling as on account of higher operating costs, but JD Wetherspoon is ticking along nicely, and its policy of focusing on profitable pubs is paying off.

Dunelm Group (LON:DNLM) shares are a little in the red this afternoon despite the solid fourth-quarter figures. Total LFL sales jumped by 15.4%, and the online surged by 37%. It is encouraging to see that revenues are on the rise given that many retailers have complained about a fragile retail market. The impressive jump in online sales underlines the change in consumer trends. The outlook was optimistic too, as it predicts full-year profit to be at the top end of the guidance of between £124 million and £126 million. The stock has been driving higher since December, and if the bullish move continues it might target 1,000p.


Mr Powell comments ahead of the US open helped stocks get off to a solid start. The central banker said there was a case of somewhat easier monetary policy at the June meeting, and he cautioned that uncertainties have continued since the last Fed meeting. Traders viewed the comments as a sign the Fed is edging towards cutting interest rates, and that helped the S&P 500 hit 3,000.

Levi Strauss (NYSE:LEVI) shares are down after mixed Q2 figures. Earnings per shares came in at 7 cents, which undershot the 8 cents forecast. The fashion house foresees that full-year revenue will come in at top end of the ‘mid-single digit range’. Given the financial reporting of the company, it will narrowly miss-out on Black Friday – the busiest shopping day in the US, and that has led traders to believe that second-half sales figures will be softer than the first-half number.

Tesla (NASDAQ:TSLA) shares have traded higher this afternoon on a report the company will boost capacity at its factory in California.


The US dollar index sold-off on the back of the comments made by Mr Powell. GBP/USD has been lifted by the respectable growth figures from the UK. On year-on-year basis, in May, the UK economy grew by 1.5%, which exceeded the forecast of 1.3%. Adding to the positive news, the April reading was revised upward to 1.6% from 1.3%. EUR/USD has also been lifted by the softer US dollar. The European Commission kept the 2019 GDP forecast unchanged at 1.2%, while the CPI forecast was trimmed from 1.4% to 1.35.

USD/CAD is a little lower today after the Bank of Canada kept interest rates on hold at 1.75% - meeting forecasts. The Canadian central bank said the current rate remain appropriate.


Gold was given a boost by the softer US dollar and the metal has retaken the $1,400 mark. The strong inverse relationship between the commodity and the greenback continues. Gold has enjoyed a bullish run for a few months, and if the wider upward trend continues it might retest the $1,439 area.

WTI and Brent crude were jolted higher in the wake of the Energy Information Administration update, which showed a fall in oil and gasoline stockpiles. Oil inventories dropped by 9.49 million barrels, which dealers were only expecting a draw of 3.08 million barrels.

All Eyes On Powell, Levi’s Fall Out Of Fashion

Related Articles

Neil Wilson
Stocks On Sale, But For How Long? By Neil Wilson - Jan 25, 2022

We were looking for a level and maybe we got it; or maybe it’s a dead cat bounce. US stock markets staged one of the most remarkable turnarounds in living memory. The Nasdaq ended...

All Eyes On Powell, Levi’s Fall Out Of Fashion

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The inherent concept of such investments means that they are not suitable for the investor seeking income from such investments, and are only suitable for those who have the required experience and understand the market risks. You should carefully consider your investment objectives, level of experience, and seek advice from an independent financial advisor if you have any doubts.
Continue with Google
Sign up with Email