This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Dixons Carphone (full-year earnings 28 June)
The recent slowdown in consumer spending, highlighted by DFS, may have hit Dixons Carphone as well, given the big ticket nature of the products sold by the group. It will be hoped by many that Dixons remains immune, but with inflation on the up and wages failing to grow, the outlook does not look particularly rosy. Online rivals, Amazon chief among them, also make life difficult, but the firm is still expected to see an 8% increase in earnings, to over £500 million.
The shares have steadily declined since the beginning of 2016, with each rally being smaller. However, 294p continues to hold as support, so another bounce from here would challenge the declining trendline at 330p. A further rally would target 372p and then 391p.