Stock Market Update & Analysis: July 18th

Global Markets

• Canada’s Main Stock Index: The Canadian stock market declined, as gold prices fell, even though Oil moved higher. Investors were also taking profits after a strong move in the markets.
• American Markets: U.S. markets saw a decline despite positive news from Taiwan Semiconductor Manufacturing Co. (TSMC), which reported an upbeat forecast and strong results. Market jitters came from economic policy concerns, and fear the Federal Reserve was too late to reduce interest rates, as unemployment data rose.
• European Shares: European markets saw mixed gains, driven by a rise in energy sector stocks. This increase in energy stocks overshadowed declines in technology stocks, which faced some selling pressure. Investors were also focused on the European Central Bank (ECB) which kept the interest rate steady.
• Japan’s Nikkei: The Nikkei index in Japan fell more than 2%, largely influenced by a sell-off in chip stocks. This decline was exacerbated by a stronger yen, which negatively impacts export-oriented companies in Japan.
• U.S. Dollar: The U.S. dollar showed slight strength against its major currency peers. This movement in the currency market can impact various sectors and international trade, influencing market dynamics further.

Corporate Stock News

• Alaska Air Group: Forecasted lower-than-expected third-quarter profit due to new flight attendant contract impact.
• Alphabet Inc: Italian antitrust investigation into Google’s data practices; partnership with CMA CGM for AI deployment; lawsuits over privacy violations.
• Ardent Health: Priced IPO below range, raising $192 million; valuation around $2.3 billion.
• Apax Partners, Bain Capital, CVC: Exploring bids for SoftwareOne following board ouster; potential acquisition discussions ongoing.
• Chuy’s Holdings Inc & Darden Restaurants Inc: Darden to acquire Chuy’s Holdings for $605 million, expanding restaurant portfolio.
• Crown Castle Inc: Beat second-quarter site rental revenue estimates, initiated restructuring plan for cost savings.
• Discover Financial Services Inc: Reported 70% rise in second-quarter profit driven by high-rate environment.
• Domino’s Pizza Inc: Missed quarterly same-store sales estimates due to inflation concerns impacting consumer spending.
• D.R. Horton Inc: Beat profit estimates on strong new home sales amid low housing supply; approved $4 billion share buyback.
• Equifax Inc: Forecasted third-quarter revenue below estimates due to prolonged high interest rates affecting mortgage markets.
• EssilorLuxottica: Acquired streetwear brand Supreme from VF Corporation for $1.5 billion, marking its first apparel company acquisition.
• Infosys Ltd: Beat quarterly revenue estimates, raised FY25 revenue growth forecast on recovery in financial services and manufacturing sectors.
• Kinder Morgan Inc: Missed second-quarter profit and revenue estimates, highlighted data center-driven electricity demand for natural gas.
• Nokia Oyj: Reported decline in second-quarter operating profit due to weak demand for 5G telecom equipment.
• Novartis AG: Raised 2024 earnings guidance driven by increased prescriptions for key drugs.
• Standard Chartered: Increased hiring in private banking teams across Singapore, Hong Kong, and UAE to expand affluent business.
• Steel Dynamics Inc: Reported a drop in second-quarter profit amid declining domestic steel prices and customer order inconsistency.
• Taiwan Semiconductor Mfg. Co. Ltd.: Raised full-year revenue forecast due to strong demand for AI chips; rejected U.S. joint venture proposal.
• United Airlines Holding Inc: Forecasted lower-than-expected current-quarter profit, plans to cut capacity to boost pricing power.