TOP STORIES

AB Foods Poised to Flag Post-Lockdown Primark Boost -- Market Talk

1534 GMT - Associated British Foods looks set to report a postpandemic upturn for discount clothing retailer Primark in a 3Q update Thursday, according to Hargreaves Lansdown. While Primark has taken a hit from lockdown closures, particularly given its relative lack of an online business, the upcoming quarterly results should show the start of a recovery, the brokerage says. "Demand was strong initially as its stores reopened and we'll be looking for evidence that the group has been able to offload last year's spring and summer lines as shoppers return," HL analyst Laura Hoy says. "If pent-up demand was as strong as management was expecting, we should see strong margins." (philip.waller@wsj.com)

Danone 1H Margin Has Support But Cost Inflation Will Hit 2H -- Market Talk

1000 GMT - Danone's first-half margin looks slightly less at risk than anticipated, supported by hedging and pre-emptive measures, says Citi. The French food company should be able to contain earnings downgrade risks until it updates its strategy, as it also enjoys a small margin recovery in the waters business and resilience in essential dairy and plant-based products, according to the bank. The second half of the year instead looks more complex, with cost inflation starting to weigh and pricing failing to fully absorb the hit, Citi says. (giulia.petroni@wsj.com)

STORIES OF INTEREST

Sodexo's 2H Guidance Looks Conservative, Stifel Says -- Market Talk

1513 GMT - Sodexo's targets for the second half are conservative relative to its peers, and the gradually improving volume momentum and ramping up of a cost saving plan could bring upside pressure on margins, says Stifel. The French food-services and facilities company's guidance for organic growth in the 10% to 15% range in the second half has room for improvement amid momentum driven by reopening in the U.S. and to a lesser extent Europe, Stifel analysts say. The focus should be on a potential guidance update as the company is set to release sales figures on July 1, says Stifel. (cecilia.butini@wsj.com)

Missfresh Prices IPO of 21 Million ADSs at $13/ADS

Missfresh Limited said it has priced its initial public offering of 21 million American depositary shares at $13 per ADS for a total offering size of $273 million.

Each ADS represents three Class B ordinary shares of the company.

The ADSs are expected to begin trading on the Nasdaq Global Select Market on Friday under the ticker symbol "MF."

FUTURES MARKETS

U.S. Cattle on Feed Rise

Heads of cattle on feed for the slaughter market are up 5% versus this time last year, the USDA said Friday.

In its monthly Cattle on Feed report, the USDA said that cattle-on-feed inventory through June 1 totaled 11.7 million head, 105% of where it was last year. It's the second-highest June inventories have been since the USDA began keeping records in 1996.

Feedlot placements totaled 1.91 million head, down 7% from June 1 of last year. This is a larger decrease than forecast by analysts surveyed by The Wall Street Journal this week, who had expected a 5% dip.

(END) Dow Jones Newswires

06-25-21 1736ET