Yahoo Finance Trending tickers: Ocado | Novartis | Rio Tinto | Morgan Stanley
A look at the top stocks making headlines on Tuesday
Ocado (OCDO.L)
Tech and grocery group Ocado stock jumped more than 15% in early trade in London on Tuesday as its earnings report revealed a return to underlying profit for the first half of the year. This was supported by demand for its retail services and robotics.
Its tech, which has created new ways to guide robots in warehouses, has helped it score new international clients such as Kroger (KR) in the US and Aeon (8267.T) in Japan.
The group added that there was no change to financial guidance given when it announced full-year results in February.
Read more: FTSE 100 and European stocks tread water ahead of slew of corporate earnings
Core earnings (EBITDA) hit £16.6m ($21.72m), ahead of a consensus forecast for a loss of £16m, and reversing a loss of £13.6m in the year-earlier period.
"I just don’t get why the stock moves so much on the retail side of the business when virtually all its enterprise value lies in the tech bit of the business. EBITDA of £16.6m does not make £5bn company," said Finalto and Markets.com chief market analyst Neil Wilson.
Novartis (NVS)
Novartis' latest results saw it launch a $15bn share buyback programme, as it raised its outlook for the year on strong sales.
Revenues for the US-listed pharma firm are now expected to grow in the high-end of the single digits for 2023, as opposed to the mid-end. Core operating income is set to grow in low double digits up from a previous forecast of high single digits. Q2 sales grew 7% to $13.7bn.
It is now targeting early-September for the spinout of its generics division Sandoz.
Stock was up from $98.94 to around $102.00 in pre-market trading.
Rio Tinto (RIO.L)
Shares in miner Rio Tinto were up 0.4% on Tuesday morning in London as investors await its earnings report.
Jakob Stausholm, the company's CEO, told the FT earlier on Tuesday that developed countries are searching for ways to replicate Chinese resource supply chains for minerals, with a more positive attitude towards mining on the horizon from the west. There have been talks on how to accelerate mine development, he added.
Read more: Stocks that are trending today
The comments come less than six months after Rio Tinto halved its dividend in reflection of lower commodity prices. At the time it said it was "quietly confident" about the outlook following relaxed COVID restrictions in China. Rio Tinto relies on China for iron ore exports.
Morgan Stanley (MS)
Morgan Stanley is among other big US banks reporting earnings on Tuesday. Stock was up more than 1% in premarket trading following a month of ups and downs.
The expectation on Wall Street is that a slowdown ind dealmaking will have weighed on banks' top lines.
Factset forecasts have predicted profit falling 20% to $2bn, meaning earnings of $1.20 per share. Revenue is set to decline with this to $13bn from $13.1bn in the same quarter last year.
The dealmaking rout also hit Citigroup (C) and JPMorgan (JPM), which reported results on Friday.
Watch: Novartis ‘focusing on high-end, innovative medicines,’ CEO says
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