Market Insights & Analysis: November 1st, 2024

Global Markets

Canadian Markets:

Canada’s TSX  rose, driven by increases in oil and gold prices, reflecting a broader trend in commodities that has bolstered stocks.  The TSX also received a positive push from Air Canada’s stock, as it rose 10 percent on the announcement of a share buyback program.

American Markets:

American stocks rose sharply, largely fueled by optimistic earnings reports from Amazon. This development helped to offset a prior tech-led selloff that had dampened market sentiment. However, a recently released jobs report revealed a slowdown in hiring, with employers adding only 12,000 jobs in October, significantly lower than the anticipated 112,000. This disparity raised concerns about economic momentum and could influence future Federal Reserve decisions on interest rates.

European Markets:

European shares climbed, propelled by a rally in energy stocks. Despite this increase, the market was on track for its worst weekly performance in nearly two months, indicating underlying volatility and investor caution regarding the broader economic outlook.

Asian Markets

Japan’s Nikkei index closed more than 2% lower, mirroring Wall Street’s weak performance from the previous night. Similarly, stocks in mainland China ended in the red after two weeks of consecutive gains, highlighting a retreat in investor confidence in the region.

Corporate Stock News

• Abbott Laboratories & Reckitt Benckiser Group Plc: A jury found Abbott and Reckitt’s Mead Johnson not responsible for a young boy’s intestinal disease linked to their formulas.
• AES Corp: Reported third-quarter profit exceeding estimates, driven by renewables and utilities, reaffirming adjusted profit forecast of $1.87 to $1.97 per share.
• Air Canada: Raised annual core profit forecast due to strong demand for international travel and lower jet fuel prices; plans to repurchase up to 35.78 million shares.
• Alliant Energy Corp: Beat profit estimates but lowered the top end of its full-year earnings forecast to $3.06 per share.
• Amazon.com Inc: Exceeded third-quarter profit and sales expectations, forecasting a strong holiday season with a 7% increase in retail sales to $61.41 billion.
• Apple Inc: Reported strong iPhone sales but raised concerns with a modest revenue forecast for the holiday season; overall sales reached $94.93 billion.
• Atlassian Corp: Raised its revenue growth forecast after a 21% increase in quarterly revenue to $1.19 billion, driven by cloud software demand.
• Camden Property Trust: Missed FFO estimates due to easing rental growth in key markets, reporting core adjusted FFO of $1.48 per share.
• Chevron Corp: Beat profit estimates, reporting $4.53 billion for the third quarter, despite a year-over-year decline.
• Comcast Corp: JP Morgan raised the target price to $46 following solid third-quarter results supported by Olympics-related marketing.
• Coterra Energy Inc: Missed profit estimates due to lower commodity prices, with a 22% drop in net income.
• Eastman Chemical Co: Beat profit estimates amid rising revenues but cautioned about seasonal declines affecting fourth-quarter earnings.
• Estée Lauder Co Inc: Target price cut to $75 after weak second-quarter estimates and retracted 2025 guidance.
• Exxon Mobil Corp: Beat profit estimates driven by strong oil output but experienced a year-over-year profit decline.
• Intel Corp: Cut target price to $25, reported a significant net loss due to restructuring charges but expressed optimism for future revenue growth.
• Juniper Networks Inc: Beat revenue and profit expectations, reporting $1.33 billion in revenue aided by demand for networking equipment.
• Lexicon Pharmaceuticals Inc: FDA advisers voted against recommending its diabetes treatment, marking a setback for the company.
• Magna International Inc: Cut annual sales and profit forecasts amid weak auto demand, reporting third-quarter earnings below expectations.
• News Corp: ISS urged investors to support a plan to end the company’s dual-class voting structure.
• Starbucks Corp: A U.S. appeals court showed division over claims regarding NLRB’s authority on worker reimbursement for illegal firings.