Here’s why Barclays, Rolls-Royce, Next PLC, Shell shares popped

It was a sea of green in London as investors waited for the upcoming Bank of England (BoE) interest rate decision and the ongoing corporate earnings. The FTSE 100 index rose slightly as some of its biggest constituent companies jumped.

The biggest mover in the FTSE 100 index was Rolls-Royce, the biggest industrial company in the UK. Its stock rose to a record high of 490p, as I predicted on Wednesday in this pre-earnings preview.

The company published strong revenue and profit numbers and restarted its dividend as its cost disciplined continued.

Its underlying operating profit rose to £1.1 billion in the first half of the year while the underlying margin rose to 14%.

At the same time, the company made a free cash flow of £1.2 billion while its return on capital increased to 13.8%. Most importantly, Rolls-Royce boosted its forward guidance as it expects its operating profit will be between £2.1 billion and £2.3 billion.

These results were a bright spot in the aviation industry. On Tuesday, Airbus, the biggest aircraft manufacturer in the world, reported weak financial results as the supply chain issues continued.

And on Wednesday, Boeing, the troubled manufacturer, reported a $1.4 billion loss as its challenges continued. It then picked Kelly Ortberg as the next Chief Executive Officer. In a statement, Tufan Erginbilgic, Rolls-Royce’s CEO said:

Barclays (LON: BARC) share price is also firing on all cylinders. It jumped by more than 2% on Thursday, reaching a high of 240p, its highest point since August 2009. It has soared by more than 185% from its lowest point in 2020, making it one of the best-performing companies in the FTSE 100 index.

Barclays stock soared on Thursday after publishing encouraging financial results and boosting its shareholder returns. After spending £1 billion in share buybacks in the last financial year, the company announced a new £750 million one today.

At the same time, the company boosted its forward guidance for its Net Interest Income (NII) from £10.7 billion to £11 billion. Its income for the first half of the year was £13.3 billion while its profit before tax rose to £4.2 billion.

These numbers mean that Barclays has turned around the corner, helped by higher interest rates in the country. Indeed, its investment bank division returned to growth as income rose by 10% and global markets and equities rising by 5% and 24%, respectively. Its FICC division was the main laggard as its revenue fell by 3%.

Shell stock price rises

Meanwhile, the Shell stock price has done well this year, helped by the robust oil prices. This trend continued on Wednesday after the company published strong financial results and boosted its dividends.

Its adjusted earnings rose to $6.3 billion as the summer season led to more demand. More data showed that its integrated gas business had adjusted earnings of $2.6 billion while its upsteam, marketing, and chemicals made $2.3 billion, $1.08 billion, and $1.08 bilion, respectively.

The biggest catalyst for the Shell stock move was its share repurchases plan worth $3.5 billion. Like other European oil companies, Shell is working hard to bridge its valuation gap with its American peers like Chevron and ExxonMobil.

Next PLC stock gains momentum

Meanwhile, Next PLC share price continued soaring, reaching a record high of 9,850p on Thursday. It has risen by over 48% from its lowest point in 2023.

Next PLC has emerged as one of the best-performing UK retailers. In its trading statement, the company said that its total online sales rose by 8.1% in the second quarter and by 8.4% in the first half of the year.

The rebound in online sales was offset by a big dip in retail sales, which dropped by 4.7% during the quarter. It also maintained its forward guidance for the year. It expects that its full-year sales will be 3.4% to £4.9 billion while its total group sales will be £6.2 billion. Its profit before tax is expected to rise by 6.7%.

Not all FTSE 100 index companies published strong financial results. Schroders share price dropped by 6.62% after publishing weak results, as I had predicted. EasyJet stock tumbled by 3% after Wizz Air became the other airline to publish weak financial results. The other top laggards in the index were HSBC Holdings, Lloyds, Reckitt Benckiser, and Antofagasta. Looking ahead, the next key catalyst for the FTSE 100 index will be the Bank of England decision.