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Love Island lifts ITV, Traders await Trump-Juncker meeting

Stocks are largely lower today as profit-taking has set in following yesterday’s positive move. 

President Trump is set to meet Jean Claude Juncker, the European commission president, in Washington DC today. Traders will be keeping an eye on the meeting as trade negotiations will be prominent on the agenda.

World Cup fever and the nation’s infatuation with Love Island helped ITV total revenue increase by 8% to £1.59 billion, which was slightly ahead of the £1.5 billion that equity analysts were expecting. Total advertising revenue jumped by 2%, and there was a 48% rise in online revenue growth, and this highlights the change in the advertising world. ITV confirmed that it anticipates third-quarter revenue to be broadly flat due to economic uncertainty. The company is planning to cut costs by between £35 million and £40 million, while paying a full-year dividend of at least 8p. The stock has been largely range-bound since October, but while it holds above 162p – the 200-day moving average – its outlook looks likely to remain positive.

Deutsche Bank shares are in the red after the bank revealed a 14% drop in second-quarter net profit. Revenue from fixed income, currencies and commodities trading fell by 17%, and that was a larger drop than analysts were expecting. Revenue from equity trading and sales fell by 6%. The bank has cut 2,100 jobs since the start of the year, and it is halfway to achieving its target of trimming its headcount by 4.7% in 2018. The aggressive restructuring is a good start, but investors will want to see a turnaround in the core business too. The stock is off the lows of the year, but if it can hold above the €10 mark it could push higher.

EUR/USD is still slightly higher on the day even though the German IFO business survey slipped to 101.7 in July, from 101.8 in June. Economists were expecting a slightly weaker reading of 101.5. 

AT&T shares will be in focus today after the company released mixed results last night. The firm posted second-quarter earnings per share of 91 cents, while analysts were expecting 85 cents. Revenue for the period was $38.99 billion, while the consensus estimate was $39.39 billion.

At 3pm (UK time) the latest US new home sales report is released, and the consensus estimate is for a figure of 670,000, compared with 689,000 in May.

We are expecting the Dow Jones to open down 11 points at 25,230 and we are calling the S&P 500 down 2 points at 2,818. 

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