Sonova down 15%
The Swiss company Sonova fell to the bottom of the Stoxx 600 in mid-afternoon, losing 15%, after the publication of its financial results on Tuesday. The hearing aid maker revised its outlook for the coming year due to sluggish market conditions and higher-than-expected component and freight costs.
Hearing-health company Demant also fell more than 10% after reporting its half-year results on Tuesday.
The Dow rises, the S&P 500 and the Nasdaq slip
The Dow Jones rose 34 points on Tuesday, or 0.1%, led by gains at Walmart and Home Depot, which jumped more than 1% and 5%, respectively. The S&P 500 slipped 0.14%, while the Nasdaq Composite edged down 0.44%.
— Samantha Subin
Delivery Hero up 6% on optimistic Q3 outlook
Delivery Hero shares rose more than 6% in mid-afternoon in Europe, after the German online takeaway company offered an upbeat outlook for the third quarter, while confirming its preliminary figures for the second trimester.
The company forecasts gross merchandise value (GMV) growth of 7% quarter over quarter to 10.6 billion euros ($10.75 billion).
UK real wages fall at record pace as inflation soars
Real wages in the UK, which reflect the strength of employee compensation after accounting for inflation, fell 3% a year in the last quarter, according to data released Tuesday by the Office of National Statistics.
While the average wage – excluding bonuses – rose by 4.7% between April and June, according to the ONS, the cost of living is rising at an even faster rate and outpacing wage growth.
Darren Morgan, director of economic statistics at the ONS, said this affected the scale of wages in the daily lives of workers.
Sonova stock drops 14% after lower forecast
Shares of Sonova Holding plunged more than 14% in early trade after the world’s largest hearing aid maker slashed its forecast for the full year 2022/23, citing a lackluster market environment and continued pressures on input costs.
The Swiss company now expects consolidated sales growth of between 15% and 19%, compared to a previous target of 17% to 21%. Growth in adjusted EBITA over the full year is now expected in the range of 6% to 10%, compared to 12% to 18% previously.
BHP posts highest profit in 11 years; stocks go up
BHP Group reported a 26% rise in annual profits that was bigger than expected due to soaring prices for coal and other raw materials.
The world’s biggest miner reported profit of $21.3 billion for the year ended June 30, its highest level since 2011, and announced a record dividend worth $16.3 billion .
The company also declined to rule out a second bid for copper and nickel miner OZ Minerals, after seeing a $5.8 billion bid rejected earlier this month.
BHP shares rose 3.9% in early trades in London.
CNBC Pro: Tesla’s Valuation Only Makes Sense When It Hits This Level, Fund Manager Says
Tesla may be one of the best-known electric vehicle makers, but fund manager and tech investor Paul Meeks thinks the stock is still too expensive.
Meeks revealed to CNBC Pro Talks the valuation at which he will find Tesla “more attractive.”
Pro subscribers can read the story here.
— Zavier Ong
British-Australian miner BHP soars after making its second-biggest profit in history
Shares in British-Australian miner BHP soared 3.80% after posting its second-biggest profit in history and a record $16.3 billion dividend.
Its annual results ended June 30 exceeded expectations.
BHP Chief Executive Mike Henry said BHP enters FY2023 “strategically, operationally and financially in great shape”.
He also expects China “to emerge as a source of stability for commodity demand over the coming year, with political support gradually taking hold.”
“At the same time, we expect a slowdown in advanced economies as monetary policy tightens, as well as geopolitical uncertainty and persistent inflationary pressures,” he said in a press release. .
“The direct and indirect impacts of the energy crisis in Europe are of particular concern. Tight labor markets will continue to challenge global and local supply chains.”
The situation is reversed for peers Rio Tinto and Fortescue Metals which posted declines.
-Su Lin Tan
CNBC Pro: Strategist names global stocks to buy despite slowing growth
There are pockets of “compelling value” in three sectors, even in an economic downturn, said Patrick Armstrong, chief investment officer at Plurimi Group.
These sectors are “unbelievably cheap,” he told CNBC’s “Squawk Box Europe,” naming his favorite stocks and explaining why he likes them.
Pro subscribers can read the story here.