Quarterly Outlook
Q3 Investor Outlook: Beyond American shores – why diversification is your strongest ally
Jacob Falkencrone
Global Head of Investment Strategy
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London Quick Take – 22 July - S&P 500 Closes Above 6,300 as Earnings Season Gets Going
Neil Wilson
Investor Content Strategist
Note: This is marketing material. This article is not investment advice, capital is at risk.
Figma released an updated prospectus ahead of its planned IPO touting shares in the company at a range of $25 to $28 each, implying a valuation in excess of $16bn.
Alphabet and Tesla report after the close tomorrow – these will be important for sustaining the AI underpinning for the broader market. Ahead of them we have Coca-Cola, GE Aerospace, General Motors and Philip Morris. You can read our Alphabet earnings preview and our Tesla earnings preview.
London Quick Take – 22 July – S&P 500 Closes Above 6,300 as Earnings Season Gets Going
Key Points
- S&P 500 and Nasdaq close at record highs
- US Treasury Secretary Bessent takes fresh aim at Federal Reserve
- Compass Group, Greencore shares rise as both lift guidance
- Tesla and Alphabet to report tomorrow
Shares in London seem to be drifting sideways as the FTSE 100 bobbled around the 9,000 level, while gilt yields rose after government borrowing jumped last month, raising fresh concerns about the UK’s fiscal and economic outlook. Compass Group led the gainers after raising its guidance. European stock markets opened down on Tuesday with the DAX and CAC both declining around half a percent in the first part of the session.
US stocks made fresh record highs - markets seem to be shrugging off all uncertainty, whether it’s the fate of the Federal Reserve or 1 August tariffs. The S&P 500 closed above 6,300 for the first time. Treasury yields and the dollar were lower yesterday to help tech out along with gold, which jumped to its best in a month before running into resistance at $3,400 and pulling back this morning.
US Treasury Secretary Scott Bessent called for an inquiry into “the entire Federal Reserve institution”, amid wrangling over the cost of a renovation of its headquarters and persistent attacks on chairman Jay Powell by Donald Trump. It sounds as though the administration is poking around and the renovation seems like a useful angle to pile the pressure on.
US Treasury Secretary Scott Bessent called for an inquiry into “the entire Federal Reserve institution”, amid wrangling over the cost of a renovation of its headquarters and persistent attacks on chairman Jay Powell by Donald Trump. It sounds as though the administration is poking around and the renovation seems like a useful angle to pile the pressure on.
The British government’s borrowing rose more than expected in June – second-highest since records began in 1993 for the month...tax hikes are coming. Gilt yields rose with the 30yr jumping after sliding on Monday – we're not yet back to yesterday’s highs so nothing to get jumpy about. But I do worry that we could see bond vigilantes hit gilts this autumn.
Companies
Companies
Trump gets his way: AstraZeneca said it will invest $50bn in the US for medicines manufacturing and R&D. Shares were flat on the news...be hopeful that this is the kind of thing the president appreciates, and that he will find carve-outs and exemptions for anyone who puts their money where his mouth is.
Contract food service business Compass Group raised its full-year profit guidance on good organic growth and better-than-expected performance from acquisitions. Management said it now expects full-year underlying operating profit growth of 11%, following an 8.6% rise in organic revenues in the first nine months of the year. Compass also announced the acquisition of Vermaat Groep, the market leader in the Netherlands, for €1.5bn. North America organic growth strong + further strengthening of European footprint with another acquisition = solid footing for Compass to be on. Shares leapt over 8% at one stage.
Fellow food company Greencore rallied 10% after it too raised its outlook. Management at the food-to-go company lifted full-year 2025 operating profit guidance to between £118mn-121mn million, up from the previous range of £114mn-117mn, after Q3 revenue growth accelerated to 9.9% from 6.6% in the first half of the year.
One more to note is Kier Group, which is a beneficiary of increased infrastructure investment. Shares were down 5% though - FY results were in line but CEO is retiring. Management note that the order book is underpinned by the government’s renewed investment commitments to improving UK infrastructure and regulated UK assets. On that note, today also saw the government gave the green light to build the Sizewell C nuclear plant after securing private investment. Shares of Centrica – which has a 15% stake in the new facility – rallied sharply.
Contract food service business Compass Group raised its full-year profit guidance on good organic growth and better-than-expected performance from acquisitions. Management said it now expects full-year underlying operating profit growth of 11%, following an 8.6% rise in organic revenues in the first nine months of the year. Compass also announced the acquisition of Vermaat Groep, the market leader in the Netherlands, for €1.5bn. North America organic growth strong + further strengthening of European footprint with another acquisition = solid footing for Compass to be on. Shares leapt over 8% at one stage.
Fellow food company Greencore rallied 10% after it too raised its outlook. Management at the food-to-go company lifted full-year 2025 operating profit guidance to between £118mn-121mn million, up from the previous range of £114mn-117mn, after Q3 revenue growth accelerated to 9.9% from 6.6% in the first half of the year.
One more to note is Kier Group, which is a beneficiary of increased infrastructure investment. Shares were down 5% though - FY results were in line but CEO is retiring. Management note that the order book is underpinned by the government’s renewed investment commitments to improving UK infrastructure and regulated UK assets. On that note, today also saw the government gave the green light to build the Sizewell C nuclear plant after securing private investment. Shares of Centrica – which has a 15% stake in the new facility – rallied sharply.
Figma released an updated prospectus ahead of its planned IPO touting shares in the company at a range of $25 to $28 each, implying a valuation in excess of $16bn.
Alphabet and Tesla report after the close tomorrow – these will be important for sustaining the AI underpinning for the broader market. Ahead of them we have Coca-Cola, GE Aerospace, General Motors and Philip Morris. You can read our Alphabet earnings preview and our Tesla earnings preview.
And finally, Trump Media and Technology Group said it has built a $2bn hoard of bitcoin and other crypto assets – shares of DJT jumped as much as 9% and finished up 3% on the session.
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