EUROPE MARKETS: Earnings Help Europe Stocks Rebound, With Vodafone And Vivendi Rallying
July 26 2019 - 5:55AM
Dow Jones News
By Steve Goldstein, MarketWatch
Well-received earnings on both sides of the Atlantic drove a
gain in European stocks on Friday, helping to rebound from a rough
session.
After ending Thursday with its biggest percentage decline in
about three weeks, the Stoxx Europe 600 rose 0.2% to 390.11.
The U.K. FTSE 100 added 0.2% to 7,506.63, the French CAC 40 rose
0.2% to 5,591.43, and the German DAX rose 0.2% to 12,384.01.
What's moving markets
Earnings beats for Google owner Alphabet and Intel helped lift
U.S. stock futures on Friday, with second-quarter GDP data on
tap.
The cloud over the lack of consensus at the European Central
Bank lingered over markets, though most expect Mario Draghi to push
through interest-rate cuts before he hands the baton to Christine
Lagarde who takes over as president of the ECB. "We think Draghi
will use his last two press conferences ... to push through some
easing and pave the way for Christine Lagarde toward a potential
sovereign QE program, if it becomes necessary," said Ricardo
Garcia, chief economist for the eurozone for the UBS Chief
Investment Office.
After Thursday's wild ride, the euro traded at $1.1140, vs.
$1.1149.
Focus stocks
Vodafone Group (VOD.LN) (VOD.LN) shares jumped nearly 8% as the
mobile phone giant set out plans to separate its European tower
infrastructure business
(http://www.marketwatch.com/story/vodafone-to-split-off-europe-tower-unit-2019-07-26),
possibly by an initial public offering. It also reported a slight
decline in fiscal first-quarter revenue and confirmed its earnings
guidance.
Vivendi (VIV.FR) shares gained 5% as the French media
conglomerate reported an operating profit rise of 28% on a 7% gain
in comparable revenue in the first half. Universal Music Group
drove Vivendi's profitability, on new releases from Ariana Grande,
Billie Eilish and the Japanese band King & Prince, as well as
continued sales of the soundtrack from A Star is Born and albums
from Queen.
Pearson (PSON.LN) shares rose over 6%, as the educational
publisher lifted its adjusted earnings per share guidance for the
year
(http://www.marketwatch.com/story/pearson-lifts-guidance-for-the-year-2019-07-26),
helped by lower finance charges and taxes than anticipated and
sales growth at its online degree program unit.
Nestle shares (NESN.EB) rose 2% as pet-care sales and the launch
of Starbucks products in 14 markets helped drive what it calls
underlying EPS by 15% in the first half and comparable sales by
3.6%
(http://www.marketwatch.com/story/nestle-backs-2019-view-helped-by-starbucks-deal-2019-07-26).
(END) Dow Jones Newswires
July 26, 2019 05:40 ET (09:40 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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