As was expected, the FTSE 100 was on the rise in the morning, tacking on 10 points (0.15 percent) to reach 6,028.
Sainsbury (LON:SBRY) was broadly flat after announced positive results for the 2010/11 financial year, which saw growth in revenues and profits. However, the outlook for the current year was mixed with Sainsbury expecting an uncertain economic environment in 2011. Other major retailers were headed in different directions with Morrison Supermarkets (LON:MRW) dropped 2 percent to 301.5 pence and Marks & Spencer (LON:MKS) rallying 3.3 percent to 409 pence to take the lead in the blue chips index. Kingfisher (LON:KGF) advanced 1.8 percent to 283 pence.
Marks & Spencer was boosted by a major upgrade from JP Morgan Cazenove, which upped its recommendation for the stock from “underweight” to “overweight”, while also significantly upping its price target from 310 pence to 460 pence.
ITV (LON:ITV) was the heaviest faller among the blue chips, falling 3.3 percent on an interim management statement, in which it said that while advertising revenues growth was ahead of the market average, the market has been weak in Q2. ITV still expects to post higher ad revenues in the first half.
“While we expect to outperform the market across the whole of the year, we remain cautious about the economic outlook,” said chairman Adam Crozier.
Other notable fallers included HSBC (LON:HSBA), which today launched a cost cutting programme with a target of US$2.5-3.5 billion in savings, which it said was not about shrinking the business and was aimed at giving it room to invest in growth markets.
Financial bookmakers are currently expecting a higher open on Wall Street today. Futures for the Dow Jones Industrial Average (DJIA) rose 32 points (0.25 percent) this morning. The S&P 500 index climbed 4 points (0.3 percent) and the technology heavy NASDAQ composite was up 4.25 points (0.2 percent).
Shared in Johnson & Johnson (NYSE:JNJ) climbed 1.2 percent in pre-market. Netapp (NYSE:NTAP) and Emerson Electric (NYSE:EMR) advanced 1 percent.
Boston Scientific (NYSE:BSX) declined 1.6 percent.
Today’s US data will include balance of trade, mortgage applications and the Treasury’s budget statement.