Author: Fiona Craig

Management Share Award Supports Long-Term Alignment

EasyJet (LSE:EZJ) has awarded 27,071 restricted shares to PDMR Garry Wilson under its Restricted Share Plan. The award has been granted as a nil-cost option and is expected to vest in December 2028, subject to performance underpins being met. The grant reflects the airline’s ongoing commitment to using share-based remuneration to align senior executives with long-term shareholder value creation and business performance objectives.

Employee Share Scheme Expands Staff Participation

In a separate transaction, the trustee of EasyJet’s Share Incentive Plan acquired 31 partnership shares for each of the company’s PDMRs Robert Birge, Kenton Jarvis, David Morgan and Garry Wilson at a price of £4.79 per share. The purchases were financed through monthly salary deductions.

The HMRC-approved scheme enables employees to invest up to £150 per month in EasyJet shares, supporting the company’s objective of increasing employee ownership and strengthening the connection between staff rewards and the airline’s share price performance.

Outlook Remains Supported by Profitability and Balance Sheet Strength

EasyJet’s investment case continues to be underpinned by improving profitability and a robust balance sheet. The company also benefits from an attractive valuation, supported by a relatively low price-to-earnings ratio and dividend yield.

While technical indicators remain favourable, they suggest the shares may be approaching overbought territory. Recent management commentary has been constructive regarding liquidity and medium-term growth ambitions, although near-term pressures from operating costs and demand trends remain areas of focus.

More About EasyJet

EasyJet plc is a UK-based low-cost airline serving short-haul routes across Europe and selected international markets. The carrier targets both leisure and business travellers, competing within the budget airline sector through efficient fleet utilisation, ancillary revenue generation and a large-scale operating network across the European aviation market.

U.S. equity futures traded in positive territory on Thursday, indicating that stocks may attempt to recover after suffering steep losses in the previous session.

The rebound comes as investors look for buying opportunities following Wednesday’s sell-off, which pushed the Nasdaq and S&P 500 to their weakest closing levels in roughly a month.

Intel Upgrade Lifts Technology Sector

Semiconductor shares are expected to be among the market’s strongest performers at the open.

Intel (NASDAQ:INTC) climbed 4.6% in premarket trading after Bank of America upgraded the stock to Buy from Underperform, boosting confidence across the broader chip sector.

The move provided a welcome catalyst for technology stocks following the previous day’s widespread weakness.

Oil Rally Caps Early Gains

Even so, futures surrendered part of their advance after crude oil prices surged following fresh comments from President Donald Trump regarding Iran.

Posting on Truth Social, Trump said the United States would strike Iran “very hard tonight” and suggested Washington intends to gain control of the country’s oil and gas markets “at some point in the not too distant future.”

The comments reignited concerns about global energy supplies and added another layer of uncertainty to financial markets.

Inflation Worries Remain in Focus

Market sentiment was also affected by fresh inflation data.

The Labor Department reported that producer prices rose more strongly than expected in May, reinforcing concerns that inflation remains stubborn despite previous signs of moderation.

Persistent inflation could complicate the outlook for interest rates and limit the scope for a broader market recovery.

Wednesday’s Sell-Off Hits Major Indexes

Stocks spent much of Wednesday under pressure as geopolitical concerns and inflation fears combined to weigh on investor confidence.

By the closing bell, all three major indexes had suffered significant losses.

The Dow Jones Industrial Average fell 953.33 points, or 1.9%, to 49,918.78. The Nasdaq Composite dropped 509.32 points, or 2.0%, to 25,169.50, while the S&P 500 lost 119.66 points, or 1.6%, to end at 7,266.99.

Trump Intensifies Pressure on Iran

Investor anxiety increased after President Donald Trump escalated his rhetoric toward Iran following recent military confrontations.

“We hit them hard yesterday, and we’re going to hit them hard again today,” Trump told reporters at the White House. “We’re going to be attacking them and attacking them very hard.”

The remarks followed confirmation from U.S. Central Command that American forces had conducted “self-defense strikes” against Iranian targets after a U.S. military helicopter was shot down.

CENTCOM stated that precision strikes targeted Iranian air-defense systems, ground-control facilities and surveillance radar sites near the Strait of Hormuz.

Iran reportedly responded by targeting U.S. military installations in Kuwait, Bahrain and Jordan, while warning that it would answer any future threats or attacks.

Trump later wrote on Truth Social that Iran had “taken too long to negotiate a deal” and would now have to “pay the price!”

Energy Markets React to Escalating Conflict

The worsening conflict helped drive oil prices higher as traders assessed the risk of disruptions to Middle Eastern energy exports.

Market participants largely brushed aside Trump’s claims that the United States had quietly assisted in transporting more than 100 million barrels of oil through the Strait of Hormuz.

The resulting increase in crude prices added to inflation concerns already weighing on investor sentiment.

Consumer Inflation Meets Expectations

Separately, inflation data released by the Labor Department came in largely as expected.

Consumer prices increased 0.5% in May following a 0.6% rise in April, matching economists’ forecasts.

On an annual basis, inflation accelerated to 4.2% from 3.8%, also meeting expectations.

Core inflation, which excludes food and energy, rose 0.2% during the month, below forecasts of 0.3%.

The annual core inflation rate edged up to 2.9% from 2.8%, in line with market estimates.

Airlines and Gold Stocks Lead Market Declines

Airline stocks were among the hardest-hit sectors as higher oil prices raised concerns over fuel costs.

The NYSE Arca Airline Index plunged 5.4%, while gold-related shares also suffered, with the NYSE Arca Gold Bugs Index falling 5% as bullion prices weakened.

Technology hardware, semiconductor and housing stocks also posted notable losses.

Energy stocks stood out as one of the few areas of strength, benefiting from the sharp rise in crude oil prices.

Hooker Furnishings Corporation (NASDAQ:HOFT) reported fiscal first-quarter 2027 results on Thursday that came in ahead of analyst forecasts, with the home furnishings group returning to profitability despite ongoing challenges in the housing and consumer markets.

The company’s shares rose 1.54% in after-hours trading following the earnings release.

Earnings and Revenue Exceed Forecasts

Hooker Furnishings posted adjusted earnings of $0.10 per share for the quarter, outperforming analyst expectations of a loss of $0.04 per share by $0.14.

Revenue totaled $69.45 million, slightly above the consensus estimate of $68.84 million. However, sales were down 2.4% from $71.18 million recorded in the same period a year earlier.

Despite the modest revenue decline, improved profitability helped drive a stronger overall performance.

Company Returns to Net Profit

The company generated net income of $1.1 million during the quarter, representing a significant turnaround from the net loss of $3.1 million reported in the first quarter of fiscal 2026.

The improvement amounted to approximately $4.1 million year-on-year.

Operating income also strengthened, reaching $1.6 million compared with an operating loss of $498,000 in the prior-year quarter.

Margin Expansion Supports Results

Gross profit increased by $2.7 million, while gross margin improved by 440 basis points to 29.6%.

The gains were driven largely by the Hooker Branded segment, where gross margin expanded by 960 basis points despite a 4.8% decline in sales.

The improvement reflects ongoing efforts to enhance operational efficiency and product mix in a difficult market environment.

“We are encouraged to report $1.1 million in consolidated net income for the quarter, a $4.1 million improvement over the prior-year first quarter,” said Jeremy Hoff, Chief Executive Officer. “These improvements were achieved despite a challenging demand environment characterized by depressed housing activity and low consumer confidence.”

Margaritaville Programme Drives Backlog Growth

Hooker Furnishings reported a 14% year-on-year increase in its order backlog, supported by retailer commitments tied to its Margaritaville-branded products.

The company said it has secured commitments for 100 in-store galleries and 10 standalone retail locations.

Management expects meaningful product shipments related to these initiatives during the second half of fiscal 2027, providing additional support for future revenue growth.

Balance Sheet Strengthens

The company ended the quarter with cash and cash equivalents of $10.6 million, an increase of $9.5 million compared with the end of the previous fiscal year.

Hooker Furnishings also reported that it had no outstanding term loan balance, highlighting a strengthened financial position.

Share Repurchase Activity Continues

During the quarter, the company repurchased 7,615 shares under its existing $5 million share buyback programme.

The shares were acquired for approximately $96,000 at an average purchase price of $12.53 per share.

The buyback activity reflects management’s continued focus on capital allocation while maintaining financial flexibility amid uncertain market conditions.

Hooker Furnishings stock price

Gold prices posted modest gains on Thursday after softer oil prices helped calm concerns about a renewed inflation surge, while investors continued to monitor diplomatic developments between the United States and Iran and looked ahead to key central bank decisions.

At 05:29 ET (09:29 GMT), spot gold was trading 0.2% higher at $4,079.70 per ounce after touching its lowest level in more than six months earlier in the day. Gold futures slipped 0.8% to $4,100.65 per ounce.

Investor sentiment improved following reports that diplomatic channels between Washington and Tehran remained open despite ongoing military confrontations.

Diplomatic Efforts Persist Amid Ongoing Conflict

According to CNN, U.S. and Iranian officials continued discussions over a potential peace agreement overnight, even as both nations carried out fresh air strikes for a second consecutive day.

Separately, Reuters reported, citing Iranian sources, that negotiations remain active regarding a preliminary arrangement that could include the release of frozen Iranian assets. The report noted that efforts to reach an agreement have gathered momentum in recent days.

Despite these diplomatic initiatives, uncertainty continues to dominate the outlook. President Donald Trump warned that additional military measures could be taken if Iran failed to immediately accept a peace agreement.

Military activity intensified after U.S. forces launched attacks on multiple targets across Iran between late Wednesday and early Thursday. In a statement, U.S. Central Command described the operations as “self-defense” following the downing of an American helicopter near the Strait of Hormuz earlier this week.

Iran responded with strikes against several U.S. military facilities and allied positions throughout the Gulf region. Media reports suggested explosions were heard in Kuwait, Bahrain and Jordan, although independent confirmation has yet to emerge.

Tehran also claimed that all shipping traffic through the Strait of Hormuz had been halted, an assertion denied by CENTCOM. The latest confrontation follows a series of intermittent attacks exchanged by both countries over the past two weeks as regional tensions have escalated.

Iran has also continued to exchange fire with Israel amid Israeli operations targeting Hezbollah forces backed by Tehran in Lebanon.

Lower Oil Prices Reduce Pressure on Inflation Expectations

Brent crude, the international benchmark for oil, moved lower during Thursday’s trading session, giving back part of the gains recorded after the latest military escalation.

While crude prices remain considerably above levels seen before the conflict erupted, the recent decline has eased some concerns that energy costs could trigger another wave of inflation.

Higher fuel prices have become a key concern for investors, who worry that central banks such as the Federal Reserve and the European Central Bank may be forced to tighten monetary policy further. Rising interest rates typically weigh on gold because the precious metal does not provide a yield.

Inflation concerns were reinforced on Wednesday after data showed U.S. consumer prices increasing at the fastest pace in years, largely driven by rising gasoline costs. Investors are now awaiting U.S. producer price figures later on Thursday for further insight into inflationary trends.

Central Bank Outlook Remains Key Market Driver

According to CME’s FedWatch Tool, financial markets now expect the Federal Reserve to raise interest rates before the end of 2026.

Attention is also focused on the European Central Bank, which is widely expected to announce a rate increase following its two-day policy meeting. Policymakers are attempting to curb inflationary pressures across the eurozone, where price growth remains above desired levels.

Meanwhile, the U.S. dollar has strengthened since the conflict began in late February, creating an additional headwind for gold. A stronger dollar generally makes bullion more expensive for international buyers holding other currencies.

On Thursday, the U.S. Dollar Index was last up 0.1% at 100.09.

Oil prices traded higher on Thursday as investors reacted to a fresh escalation in military tensions between the United States and Iran, although gains moderated later in the session as markets waited for clearer evidence of disruptions to global crude supplies.

Iran announced that the Strait of Hormuz had been closed after additional U.S. strikes targeted Iranian facilities and President Donald Trump warned that further military action would follow if a peace agreement was not reached.

By 0702 GMT, Brent crude futures were up 8 cents, or 0.09%, at $93.18 per barrel, while U.S. West Texas Intermediate (WTI) crude futures gained 25 cents, or 0.28%, to $90.28 per barrel. Earlier in trading, both contracts had surged by more than $2.

Hormuz Closure Raises Fresh Supply Fears

Iran’s joint military command declared that oil tankers and commercial vessels would no longer be permitted to pass through the Strait of Hormuz, warning that any ship attempting to transit the waterway would come under attack.

“It once again suggests a deal is still some way off and that energy flows from the Persian Gulf will remain heavily constrained,” ING analysts said in a note to clients, highlighting that renewed hostilities had sparked a sharp rally in oil prices during early trading.

As one of the world’s most strategically important shipping routes for crude exports, any threat to traffic through the Strait of Hormuz is closely monitored by energy markets.

Market Remains Focused on Physical Flows

Despite the heightened geopolitical risks, traders have become more cautious as there has been no confirmed interruption to actual oil exports moving through the region.

“However, the rally was not fully sustained as the market has not yet seen an actual disruption in oil shipments through the area,” said Linh Tran, market analyst at XS.com.

The U.S. military stated on Wednesday via X that commercial vessels continued to travel through the Strait of Hormuz without interruption. It also rejected reports from Iranian state media claiming that U.S. naval vessels near the waterway had been targeted by missiles and drones.

Conflict Deepens Following New Military Action

According to U.S. officials, American forces launched additional strikes against multiple Iranian targets beginning at 5:15 p.m. EDT (2115 GMT) on Wednesday, extending a confrontation that threatens to unravel the fragile ceasefire established in early April.

During an interview with Fox News reporter Trey Yingst, President Donald Trump indicated that military operations would soon come to an end but warned that he would “bomb the shit out of them” if Iran’s leadership failed to immediately agree to a deal with Washington.

The latest exchange of attacks has intensified concerns that the conflict could spread further across the region, increasing risks to both energy infrastructure and global commodity markets.

Crude Supplies Continue to Reach Buyers

Although tensions remain elevated, oil buyers have continued to secure supplies and major producers have maintained export activity.

Indian refiners told Reuters on Thursday that they had already secured enough crude cargoes to satisfy demand through at least August.

At the same time, Abu Dhabi National Oil Co (ADNOC) and other producers continued to market and export crude cargoes to customers across Asia, helping to limit concerns about immediate shortages.

Inventory Draw Highlights Tightening Fundamentals

Data released by the U.S. Energy Information Administration (EIA) showed that crude inventories declined by 7.2 million barrels to 426.5 million barrels during the week ended June 5. Analysts surveyed by Reuters had expected a drawdown of around 4 million barrels.

Since the outbreak of the Iran conflict on February 28, total U.S. crude inventories, including strategic petroleum reserves, have fallen by approximately 79 million barrels as the United States sought to compensate for supply disruptions caused by the effective closure of the Strait of Hormuz.

Additional evidence of tightening market conditions emerged from OPEC production figures. A Reuters survey found that output from the producer group fell in May to its lowest level in more than 20 years, as a U.S. naval blockade restricted Iranian exports and Tehran’s effective closure of the critical shipping route reduced exports from other Gulf producers as well.