Daily market update: Palantir, HSBC, Metro Bank, AG Barr, Domino’s Pizza

The FTSE 100 got off to a solid start on Tuesday following gains in US and Asian markets.

Miners were higher in London, with performance also bolstered by some positively received corporate updates.

Smith & Nephew was a notable laggard. The company seems to be in a permanent state of turnaround in recent years and delivered yet another disappointment as it lowered full-year profit guidance on weaker demand for hip and knee replacements in the US.

Oil prices ticked higher as Iran denied suggestions from the US that talks between the two would resume. Though they remain some way below the highs seen last week amid hopes peace efforts can be revived.

US futures pointed to modest gains on Wall Street with the real action potentially waiting until after the market close when SpaceX posts its maiden earnings as a public company. The share price is badly in need of some rocket fuel having fallen below the IPO price to record lows.

Palantir 

Palantir has shot the lights out with its second-quarter earnings and prompted a surge in the shares in pre-market trading.

The sensitive nature of Palantir’s work for government and intelligence agencies often means there is some opacity in its financial results but the headline numbers spoke for themselves as both revenue and earnings were well ahead of forecasts.

This strong performance confounded fears that Palantir would be hit by slowing demand for AI-related software and, at a stroke, has repaired a significant proportion of the damage to the share price seen so far in 2026.

Perhaps even more significantly the software firm materially bolstered guidance for full-year revenue with investors lapping up comments from CEO Alexander Karp suggesting strong growth would continue for at least the next 18 months.

The strong expansion in non-governmental revenue may also provide some reassurance over concerns the business is not sufficiently diversified. 

HSBC

Buybacks are back on the menu at HSBC but rather than getting their knives and forks out ready to dine out on the shares, investors treated this offering with a shrug.

The muted share price reaction follows an extremely strong showing so far this year as HSBC benefits from growth in areas like wealth management and insurance and from persistently higher interest rates.

A blockbuster year-on-year jump in pre-tax profit largely reflects the impact 12 months ago of impairments linked to a Chinese lender and restructuring costs, but revenue was also materially higher and ahead of forecasts.

Confidence in the future is reflected in some modest upwards tweaks to medium-term guidance, enhanced cost savings targets and in CEO Georges Elhedery’s suggestion that having spent the first two years of his tenure building a stronger HSBC the next part is about putting those strengths to work.

The return for buybacks follows the pause imposed since the bank announced a deal last year to take Hang Seng Bank private, suggesting that having steered this supertanker of a business on to the course he wants, it is now full steam ahead with Elhedery at the helm.

BP

It has not been an easy start to life at BP for recently appointed CEO Meg O’Neill thanks to the acrimonious departure of chair Albert Manifold just weeks into her tenure. However, in just the second set of quarterly numbers under her leadership the company has posted its highest quarterly profit since 2022.

This strong showing is largely a reflection of the energy shock created by conflict in the Middle East but O’Neill is also wasting no time in putting her stamp on the business. The recent announcement of the sale of the company’s North Sea operations is followed up today by plans to sell its US biogas business Archaea.

The latter underscores the continuing pivot at BP away from green energy and back towards its historical focus on hydrocarbons.

BP’s North Sea exit is a blow for the domestic oil and gas sector and follows years of regular interventions in the fiscal terms on offer in the basin.

The ongoing programme of disposals is intended to help bolster BP’s financial strength and make the business more streamlined. O’Neill will be aware she cannot rely on oil and gas prices remaining this high indefinitely. She needs to make sure it can prosper even when the backdrop is less helpful.

Metro Bank

Metro Bank may have delivered a record level of profitability in the first half but investors were of a mind to book profits as they seized on a dip in customer deposits and modest declines in capital and liquidity ratios.

Under CEO Dan Frumkin the strategy has focused on bucking an industry trend for branch closures and shifting focus from low-margin consumer lending activities to specialist and commercial markets.

These initiatives do appear to be bearing some fruit but the reaction to today’s update is a reminder that the Metro Bank may well be kept on a short leash by the market thanks to its less than stellar long-term showing as a public company.

AG Barr

Rather than basking in the afterglow of Glasgow’s successful Commonwealth Games, AG Barr, the company behind Scotland’s favourite soft drink, saw its first-half update fall flat.

What makes it worse is the disappointing performance is entirely of the Barr’s own making, with supply chain issues leading to a £10 million revenue hit.

Investors will be hoping this is a one-off for a business which typically has a pretty strong operational track record and that an improved second-half can restore some fizz to the share price.

Domino’s Pizza

The new management team at Domino’s Pizza have delivered a strong set of results. CEO Nicola Frampton and chief financial officer Andrew Andrea have only been at the helm for a matter of months but already the focus on expanding the customer base, increasing the frequency of customers and running the business more efficiently appears to be paying off.

Expansion into chicken, an already competitive market, may have raised some eyebrows but the early signs are encouraging, while more broadly the company’s loyalty scheme is continuing to gain traction.

Frampton and Andrea will not be resting on their laurels, particularly with the market backdrop looking unhelpful. However, judged on the elements they can control, they are certainly off to a decent start.