FTSE 100 Live 24 August: Blue-chips to build on yesterday’s gains, Hays update
Nvidia delivers ‘another stunning quarter’
Nvidia’s steerage for present quarter revenues of $16 billion (£12.6 billion) is considerably increased than Wall Street elevated expectations at nearer to $12.5 billion (£9.8 billion).
The newest improve comes three months after Nvidia delivered the semiconductor trade’s largest improve to steerage for a single quarter.
Deutsche Bank known as final evening’s update “another stunning quarter” as demand for AI stays as sturdy as ever, significantly from knowledge middle prospects.
The financial institution stated: “Importantly, Nvidia considerably dispelled investor considerations on provide bottlenecks, anticipating provide to develop every quarter by means of subsequent yr.
“Overall, there may be little or no to choose at after such a powerful report and information, and our 2025/26 earnings per share estimates rise by about 60% because of this.”
Nvidia shares topped $500 final evening following a 7% rise in after-hours buying and selling.
Deutsche Bank has raised its worth goal to $560 however maintains its “Hold” score, awaiting a extra beneficial entry level. It has additionally embedded a “degree of cyclical conservatism” into estimates as knowledge middle prospects will want to digest purchases in some unspecified time in the future.
PureGym ups its recreation as membership forward of expectations
PureGym at this time posted a bumper increase in gross sales because it cheered membership progress which got here in forward of expectations.
Revenue within the first six months of the yr grew by 17% to £272m pushed by progress in membership and elevated
common income per member, whereas the corporate stated membership progress in new UK gyms was of plan as customers flocked to low-cost gyms amid the cost-of-living disaster.
But the agency continued to make a lack of £25.5 million, which was down from the £45.4 million loss it made in the identical interval final yr.
CEO Humphrey Cobbold, stated: “Whilst we had hoped that working situations following the pandemic could be simpler, the fact is that the enterprise setting has remained very tough on a number of dimensions.
“[But] Demand for our low price, versatile health club memberships stays robust and I’m significantly happy with the be part of up charges at our new websites.”
Nvidia outcomes increase markets, FTSE 100 seen increased
Asia markets have rallied and Europe is ready for a optimistic session after semiconductor large Nvidia’s newest forecast-busting outcomes.
The California-based agency’s shares jumped 7% after Wall Street’s closing bell as quarterly revenues of $13.5 billion (£10.6 billion) got here in additional than doubled the earlier yr’s $6.7 billion.
It additionally upgraded its expectations for the present quarter to $16 billion (£12.6 billion) amid an enormous shift in spending in direction of synthetic intelligence. Second quarter internet earnings of $6.74 billion (£5.3 billion) was up from $1.28 billion a yr in the past.
Chief government Jensen Huang stated: “A brand new computing period has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI.”
The update greater than delivered on Wall Street’s lofty expectations after a 200%-plus soar for Nvidia shares to this week’s file excessive.
Nasdaq futures are 0.9% increased and the S&P 500 index up 0.5% as US markets look set to build on yesterday’s robust session.
CMC Markets expects the FTSE 100 index to open 24 factors increased at 7344, having improved 0.7% yesterday on the again of hopes that UK rates of interest are close to their peak.
The Hang Seng index can be in restoration mode after placing on greater than 2% in at this time’s session. Tokyo’s Nikkei 225 stands 0.8% increased.
Morning update
Good morning from the City desk of the Evening Standard. The FTSE 100 is anticipated to open round half a proportion level increased at this time after gaining yesterday as weak PMI knowledge steered a decrease peak to rates of interest.
Here are a few of yesterday’s prime tales:
