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European stocks head toward record high, led by Adidas and Siemens

By Barbara Kollmeyer

Pandora is among the most active stocks

European stocks were headed for a fresh close on Friday, as shares of Adidas and Siemens climbed on upbeat guidance, and investors shook off data showing U.S. jobs growth fell far short of hopes.

The Stoxx Europe 600 rose 0.7% to 444.12, which if it holds into the close would mark a record. The index has gained 1.7% this week so far. The German DAX climbed 1.2%, thanks to Adidas. The French CAC 40 was up 0.3% and the FTSE 100 index rose 0.7%. The euro and pound both rose against the dollar.

Investors shook off news of disappointing April nonfarm payrolls, which recorded a 266,000 gain instead of the one-million jobs gain expected. The Dow Jones Industrial Average , S&P 500 , and Nasdaq Composite were all climbing.

Global growth remains the theme for markets and interest in specific stocks, said Neil Wilson, chief market analyst for, in a note to clients.

"A monster commodity rally continues as the global economy heats up, and massive but messy rotation out of the tech/growth/momentum plays into more cyclical/value parts of the market," he said. Copper futures for July delivery climbed over 2%, in a week that has seen the commodity gain over 5%.

Data from China on Friday showed exports and imports grew faster than expected in April (link), as global demand remained buoyant and commodity prices remained high.

In Europe, German exports rose 1.2% in March (link), continuing a recovery despite lockdown restrictions aimed at containing the COVID-19 pandemic. Other data showed industrial production for Germany rose 2.5% in March, also beating expectations, but French industrial production rose less than expected.

Shares of Adidas soared nearly 9%, toward the top of the Stoxx 600 list of gainers, after the German sporting-goods company guided for higher full-sales (link) as profit climbed in the first quarter and improved across segments. Shares of rival Puma rose 2%.

"Adidas delivered a high quality Q1 beat, showing first signs of its new strategy, which should be taken well. Sales growth is trending ahead of expectations driven by DTC [direct-to-consumer] and all regions, despite the U.S. and Europe being impacted by bottlenecks," said a team of UBS analysts led by Zuzanna Pusz.

Siemens lifted its 2021 guidance, after reporting a sharp rise in fiscal second-quarter net profit (link), thanks to the performance of its industrial businesses and the sale of its mechanical-drives business Flender. Shares of the German engineering conglomerate rose 3%.

Pharmaceutical names were strong, with shares of Novo Nordisk (NOVO-B.KO) up over 2%, the day after reporting higher profit and boosted buybacks (link).

Danish jeweler Pandora reported a revenue gain. The company said around 25% of its physical stores remained temporarily closed due to COVID-19 in April, and 20% are closed currently. Shares rose nearly 3%.

Shares of BMW were slightly higher, after the German luxury car maker reported a jump in first-quarter profit (link), and said it plans to meet the higher end of its forecast for the auto-business margin this year.

Crédit Agricole posted a 64% forecast-beating jump in net profit for the first quarter, which was boosted by higher revenue and falling provisions for potential credit losses. Shares of the French bank slipped 1.3%.

-Barbara Kollmeyer; 415-439-6400;


(END) Dow Jones Newswires

05-07-21 1058ET

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