The FTSE 100 again showed no signs of conviction to move in either direction on Thursday, with a mix of corporate earnings driving trade.
Nvidia was the big talking point on Thursday after the chip maker missed sales guidance expectations for Q4, despite smashing Q3 revenue and earnings estimates.
A 3% drop in the US premarket reflected mild disappointment with the numbers rather than out-and-out fear the AI trade is over. The trend higher for Nvidia earnings is intact, but the massive beats of earnings estimates now seem to be a thing of the past.
Demand for its chips is rising, and there are no signs of a material slowdown. That said, like all growth stories, there will ultimately be a point when growth rates ease back. It doesn’t mean Nvidia sales are going to splutter, although the meteoric rise may be slowing.
The fall in Nvidia shares dragged on US equity futures, lowering the tone and leaving FTSE 100 range on Thursday.
JD Sport was the biggest FTSE 100 detractor on Thursday. The sports fashion retailer sank 15% after announcing a tough trading period and a warning on profits.
“A cautious consumer and unusual weather seems to be a familiar story for many retailers at the moment and JD Sports is no exception,” said Adam Vettese, market analyst at investment platform eToro.
“Cost of living is hardly news anymore but some pre-election trepidation seems to have seen Americans waver on acquiring their latest sportswear purchases. This side of the pond, a mild October caused sales to slump and as such, the company has warned that profit will come in at the lower end of guidance.”
Halma was at the top of the FTSE 100 leaderboard after announcing record sales driven by its ‘Sustainable Growth Model’, which allows its portfolio companies to operate like entrepreneurial smaller companies and capture opportunities.
“Halma continues to shine, delivering record-breaking results as sales pass £1bn for the first time off the back of strong growth across its safety and environmental businesses, even as healthcare faces challenges,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.
“The company’s focus on sustainability and long-term trends like stricter safety rules and climate change solutions keeps it ahead of the curve. With a series of smart acquisitions boosting its portfolio, Halma’s steady strategy and innovative approach show it’s not just growing – it’s thriving. Looking ahead, Halma’s proven resilience and commitment to making the world safer and cleaner leave it well-positioned for future success.”