By Patrick Munnelly, Market Analyst, Tickmill
The FTSE 100 was flatlining today as investors waited on the interest rate decision in the US from the Federal Reserve. At the close, the index was up 15 points at 7788.37.
FTSE-100 biggest movers
The UK index opened the day on a mildly positive note reversing some of the losses from Tuesday. However, early gains were reversed as risk sentiment soured. Haleon Plc [LON:HEL] led the slide as the world’s largest consumer health business reported less than stellar first quarter earnings, which came in below analyst expectation leading to investors shunning the stock as the shares slid -3.43%.
On the positive side of the ledger Coca-Cola HBC AG LON:CCH advanced by 2% on the session as investors rewarded the company for maintaining full year forecasted profits which are expected to come in at the top end of the guided range driven by strong demand for soft drinks and the business’s ability to pass on production price increases to consumers.
In a reversal of fortunes, Pearson Plc LON:PSON sits at the top of the table today after leading the index to the downside yesterday. Solid Q1 results led to the reversal, coupled by clarification from the company regarding its AI adoption strategy. Yesterday, investors dumped the stock on concerns related to US educational provider Chegg who expressed concerns around AI’s impact of future revenue growth. However, Pearson’s business has a material difference in focus. Chegg and ChatGPT are focused on answers to educational content questions wheras Pearson’s focus is on developing the question content. This runs alongside incorporating AI courses developed to educate customers on the use of chatbots.
As investors digested earnings and reports from JPMorgan and Deutsche Bank analysts that confirmed the differences between Pearson and Chegg, the shares were bid up, hitting 10%+ at the close.
