JD.com shares jump on food delivery pivot

IIn today’s top stories, JD.com is eyeing an expansion into food delivery and easyJet is warning of rising operating costs. Meanwhile, metal prices could remain elevated amid a general reluctance in mining stocks to invest in new projects. Wells Fargo also names stocks to sell, while Morgan Stanley compiles a list of recession-proof stocks to watch.

JD’s food delivery movement

With consumers cutting back on discretionary spending, revenue growth slowed at JD.com [JD]. To diversify its revenue, the e-commerce giant has “considered and explored” following big Chinese tech rivals Alibaba [BABA] and Meituan [​​3690.HK] in food delivery game. When that might happen “will depend on our ability and when we can build a talent team,” said Xin Lijun, CEO of JD Retail. Bloomberg Television Friday.

EasyJet expects clipped wings

Pent-up demand for getting away from it all this summer is expected to boost travel bookings, even as global economies tighten. British low-cost airline easyJet [EZJ.L] saw demand in April and May increase sevenfold compared to the same period in 2021. Despite this tailwind, the company warned on Monday that operating costs would be higher in the second half due to increased costs of crew and airport charges. The airline industry expects a return to profitability next year.

Mining giants hold back investment

Mining giants like Rio Tinto [RIO.L] and BHP [BHP.L] are reluctant to invest in new projects, which could support metal prices due to a shortage of raw materials, the the wall street journal reported over the weekend. Bank of America data seen by the publication showed the top 10 mining companies are expected to spend around $40 billion this year and next, up from a peak of nearly $80 billion in 2012.

Wells Fargo’s Short Picks

With the outlook for companies set to change in the upcoming earnings season, Chris Harvey, senior strategist at Wells Fargo, has picked 52 stocks to avoid or sell. These are companies that he says will “underperform the market until we hear the Fed refer to a slowing economy” and then see “sharp reversals.” The list includes Disney [DIS]Etsy [ETSY]walmart [WMT]Modern [MRNA] and Avery Dennison [AVY].

Solid balance sheet stocks

For investors looking to weather a recession, Morgan Stanley looked to the Russell 1000 Index to identify stocks with strong balance sheets. A key part of his criteria was that a company must have cash flow representing more than 3% of the company’s value. United Therapeutics [UTHR] came out on top with 24.9%, followed by memory chip maker Micron [MU] with 12.2% and the shoe brand Skechers [SKX] with 8.5%.

London wants a list of weapons

The British government hopes to seduce Softbank [9984.T] to list Arm in London, while the Japanese conglomerate is on an IPO on the Nasdaq. Susannah Streeter of Hargreaves Lansdown said the government wants to make the capital a more attractive place for high-growth tech companies, but will have to “accelerate reform” if Softbank ends up avoiding it for New York.

Atlantic Lithium’s hot run

With strong demand for lithium, it’s no surprise that Atlantic Lithium [ALL.L] the stock price is up more than 30% year-to-date through June 17. But, as with any junior miner, investors should beware. The company is in the exploration and development stage, which means it is in pre-revenue. A partnership with the lithium hydroxide producer Piedmont Lithium [PLL.ASX] is expected to boost future production from the flagship Ewoyaa project in Ghana.

Disclaimer Past performance is not a reliable indicator of future results.

CMC Markets is an execution-only service provider. The material (whether or not expressing opinions) is provided for informational purposes only and does not take into account your personal circumstances or objectives. Nothing in this document is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically restricted from processing prior to providing such material, we do not seek to take advantage of the material prior to its dissemination.

CMC Markets does not endorse or offer an opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets will not be liable for any loss you may incur, directly or indirectly, as a result of any investment based on the information contained herein.

*Tax treatment depends on individual circumstances and may change or differ in a jurisdiction other than the UK.

Keep reading for FREE