Market Analysis & News: October 17th, 2024

Global Markets

Canadian Markets

Canada’s TSX rose on higher crude and gold prices, reflecting increased investor confidence in commodity markets as global demand expectations improve.

American Markets

American stocks also moved higher, buoyed by an upbeat forecast from Taiwan Semiconductor Manufacturing Company (TSMC), which lifted semiconductor stocks. This optimism reignited interest in AI-related investments, suggesting a resurgence in tech stocks that had previously faced headwinds. TSMC’s positive outlook not only reflects strong demand for chips but also hints at broader economic resilience, which is critical for sectors reliant on semiconductor technology.

European Markets

European markets rose steadily across the board, as the euro drifted near a more than two-month low as investors anticipate a rate cut from the European Central Bank (ECB) in response to slowing economic growth.

Japanese Markets

Japanese stocks were down just under a percent as the yen remained flat, and the Bank of Japan signaled for ‘very moderate’ pace for rate hikes in the future.

Chinese Markets

Chinese and Hong Kong stocks closed lower, reflecting investor disappointment over a lack of fresh stimulus measures following a closely watched housing policy briefing. This disappointment signals ongoing concerns about China’s economic recovery, particularly in its real estate sector, which has been under pressure. The absence of decisive government intervention to boost confidence in housing markets left investors wary, leading to a pullback in stock prices.

Corporate Stock News

Alcoa Corp: Progressing towards a strategic cooperation with Spanish renewable energy firm Ignis, contributing €75 million to fund its aluminum plant in Spain.

Abbott Laboratories: Piper Sandler raises target price to $133 from $131 due to strong medical technology revenue in Q3.

Blackstone Inc: Beat earnings expectations with record AUM of $1.1 trillion; reported $41 billion in inflows and $1.3 billion in distributable earnings.

Crown Castle Inc: Lowered full-year 2024 net income forecast due to slower tower leasing; Q3 net income of $303 million beat estimates.

CSX Corp: Reported Q3 profit of 46 cents per share, below the expected 48 cents, with revenue of $3.62 billion.

Discover Financial Inc: Q3 profit rose 43% to $928 million; net interest income increased 10% to $3.66 billion.

Elevance Health Inc: Cut full-year profit forecast due to rising medical costs; Q3 adjusted profit of $8.37 missed expectations.

Equifax Inc: Expects full-year revenue below estimates due to stagnant mortgage market; Q3 revenue rose 9% to $1.44 billion.

First Horizon Corp: JPMorgan raises target price to $19.5 from $18 after increased 2024 revenue outlook.

General Motors Co: Plans to shift production to Mexico; exploring further production opportunities with other firms.

Kinder Morgan Inc: Missed Q3 profit estimates; adjusted profit of 25 cents per share fell short of the expected 27 cents.

Lucid Group Inc: Anticipates larger-than-expected Q3 loss; plans a public offering of over 262 million shares.

Lundin Gold Inc: Jefferies raises target price to C$37 from C$35 following strong Q3 production results.

Meta Platforms Inc: Laying off employees across various units; raised target price to $675 from $600, citing strong revenue growth.

M&T Bank Corp: Q3 profit rose to $674 million, helped by increased fees and lower provisions for credit losses.

Morgan Stanley: Barclays raises target price to $135 from $121 following strong Q3 earnings.

Nokia Oyj: Laid off about 2,000 employees in Greater China; plans to cut another 350 jobs in Europe.

Novartis: Lost a bid to block a generic version of its heart failure drug, facing other legal roadblocks.

Phillips 66: Will shut down a major Los Angeles-area refinery next year, impacting California’s fuel supply.

PPG Industries Inc: Missed Q3 profit estimates, with adjusted profit of $2.13 per share.

Robinhood Markets Inc: Launched a desktop platform and added futures trading features to its mobile app.

Ryanair: Expected to revise down passenger traffic estimates for next year due to aircraft delivery delays.

Steel Dynamics Inc: Beat profit estimates in Q3 with a profit of $2.05 per share despite a 5.3% drop in revenue.

Taiwan Semiconductor Manufacturing Company Ltd: Reported a 54% jump in quarterly profit, driven by demand for AI chips; raised revenue growth estimates for 2024.

Travelers Companies Inc: Nearly tripled Q3 profit to $1.22 billion; underwriting gains rose significantly.

US Bancorp: KBW raises target price to $51 from $49 following solid Q3 earnings driven by strong net interest income.