Before the bell: Cristiano Ronaldo lifts US stock 18.3%

Investors in Hong Kong return after a three-day holiday. On Wall Street, a tractor stock steals the spotlight, while a company in which Buffett holds a stake tumbles.

Some profit-taking took place on Wall Street. Both the S&P 500 and the Nasdaq fell 0.3%. For Deere & Company (+11.6%), however, it was a day of celebration. Investors rewarded the agricultural machinery manufacturer after it published excellent quarterly results and raised its outlook for the current financial year. Since student Lars van Gompel presented this standout company to us in December 2024, the share price has already risen 49%. Herbalife also stood out. The nutrition supplement seller saw its stock jump 18.3% after announcing that professional footballer Cristiano Ronaldo had acquired a 10% stake in Pro2col, Herbalife’s digital wellness platform. European markets lost an average of 0.7%. As expected, Azelis (+5.6%) staged a solid recovery in Brussels. Ackermans & van Haaren (+4.1%) also had a strong session after an analyst raised the price target from 240 euro to 315 euro. Yesterday, shares of the holding company traded at 287.4 euro. Kinepolis slipped 2.2%. In Paris, Air France-KLM (+11.8%) was a top performer, while in Amsterdam ForFarmers (+10.6%) delivered a remarkable gain.

Hong Kong’s stock exchange reopened for the first time in four days but still fell 0.7% this morning. Japan is also seeing selling pressure, with the Topix index down 1.1%. At 10:00 a.m., European manufacturing PMI figures will be published. Anglo American, Danone and Kingspan are also reporting results today.

The ugly duckling slowly turns into a swan again

No, Umicore’s earlier decision to fully commit to battery production was not a good move. But perfection does not exist. Business always involves taking risks, and even the best managers cannot predict the future. Umicore continues to suffer from the malaise in the automotive industry. I fear the batteries division may never fully recover. I suspect the new CEO, Bart Sap, knows this as well. That is the key: recognizing when something no longer has a future and acting accordingly. Fortunately, the company still has its recycling division, which remains profitable. This morning, Umicore announced better-than-expected results. For the 2025 financial year, the company had guided for EBITDA between 790 and 840 million euro. It ultimately delivered 847 million euro. Impressive.

At the bottom of the pool

Nobody is perfect. Not even Warren Buffett always buys winners. Just look at Pool Corp. In recent years, Buffett gradually built up a position in the world’s largest supplier of swimming pool equipment. The story seemed convincing. Pool Corp is a market leader. There are more swimming pools, perhaps helped by global warming? What could go wrong? Yet yesterday the stock dropped another 14.5% after disappointing quarterly results and little hope for improvement. The chart does not look attractive at all. Bottom fishers are casting their lines at the bottom of the pool, but that bottom could prove false. Will Buffett’s successor now add to the 9.2% stake in Pool Corp? Or will he exit the position altogether? Perhaps he will do nothing, out of respect for his famous predecessor. And us? Do we want to buy shares in a company that itself does not expect growth? Better to wait. If or when things improve, there will still be plenty of time to act. You might even be able to buy cheaper than today.

Did you know…

that the oil price is currently at its highest level in six months? Since the mid-December low, prices have already risen 21%. The threat of a US invasion of Iran is supporting the oil market.

This article was translated from Dutch and was originally published on Spaarvarkens.be.