Market Analysis & Stock News: Sept 12th, 2024

Global Markets

Canada:

The TSX jumped 1 percent, driven largely by a steady rise in oil and gold prices. This move higher in commodity prices bolstered investor confidence and provided a lift to the Canadian stock market.

USA:

American markets also rose following the release of August’s Consumer Price Index (CPI) data, which largely met economist expectations. The CPI is a key indicator of inflation, and its alignment with forecasts helped stabilize market expectations. However, the Producer Price Index (PPI), which measures the average changes in prices received by domestic producers for their output, reported a slightly higher-than-expected increase of 0.2% month-over-month and 1.7% year-over-year. This modestly hotter reading suggests that inflation pressures might be more persistent than anticipated.

Initial jobless claims for the previous week came in higher than expected at 230,000 compared to the 227,000 forecasted. This increase in claims could hint at a potential softening in the labor market, though it remains to be seen if this is a temporary fluctuation or a sign of more significant labor market challenges.

Europe:

In Europe, shares climbed, with technology stocks leading the charge. This rise in European equities was driven by gains in the tech sector, which has been buoyant amidst ongoing technological advancements and strong corporate earnings.

Asia:

In Asia, Japan’s Nikkei index rebounded, ending a seven-day losing streak. The recovery was supported by a weaker yen, which benefits Japanese exporters by making their goods cheaper on the global market.

Chinese stocks fell to their lowest close in nearly six years. The decline was largely attributed to underperformance in consumer-related shares, reflecting concerns about domestic consumer spending and economic growth in China.

Corporate Stock News:

• 23andMe Holding Co: CEO Anne Wojcicki is open to third-party takeover offers. The company is exploring alternatives after a previous proposal was rejected.
• Alaska Air Group Inc: Raised its Q3 profit forecast due to strong summer travel and re-bookings from cancellations. Shares up in premarket trading.
• Amazon.com Inc: AWS plans to invest 10.1 billion reais in Brazil by 2034 to expand data center operations.
• Alimentation Couche-Tard Inc: Considering increasing its offer to acquire Japan’s Seven & i Holdings after a $38.5 billion bid was rejected.
• Boeing Co: West Coast factory workers will vote on a new contract and potential strike, adding pressure on new CEO Kelly Ortberg.
• Electronic Arts Inc & Roblox Corp: These companies, along with others, face an EU consumer complaint for misleading gamers into spending money.
• Eli Lilly and Co: Investing $1.8 billion in Ireland to boost production of obesity and Alzheimer’s drugs.
• General Mills Inc: In talks to sell its U.S. and Canadian yogurt operations, including Yoplait, to French dairy firms.
• General Motors Co: Exploring collaboration with Hyundai on vehicle development, supply chains, and clean-energy technologies.
• GSK plc: Positive mid-stage trial results for a new seasonal flu vaccine using mRNA technology, moving to late-stage development.
• International Business Machines Corp: Expects a $2.7 billion pre-tax charge related to pension plan obligations transfer to Prudential.
• Johnson & Johnson: FDA approved expanded use of Tremfya for treating chronic inflammatory bowel disease.
• Microsoft Corp: Cutting 650 jobs in its Xbox unit as part of cost-saving measures and integration of Activision Blizzard acquisition.
• Moderna Inc: Forecasts $2.5 billion to $3.5 billion in sales next year and predicts an annual growth rate of 25% from 2026 to 2028.
• PBF Energy Inc: Reported a mechanical issue and flaring event at its Torrance refinery, releasing sulfur dioxide into the atmosphere.
• Prudential Financial Inc: PGIM opened an office in Abu Dhabi to tap into a growing pool of wealthy clients.
• Ryanair Holdings PLC: Expects average fares to decrease by 5%-9% in the September quarter, with recent bookings strengthening.
• Stellantis: August sales up 21% from July, with reduced dealer inventory; criticized CEO Carlos Tavares over brand degradation.
• Vertical Aerospace Ltd: Completed the first phase of testing for its VX4 air taxi; risks running out of cash by March 2025 without additional funding.
• VinFast Auto Ltd: NHTSA opened a preliminary investigation into electric vehicles over issues with the Lane Keep Assist System.
• Viper Energy Inc: Acquiring subsidiaries from Tumbleweed Royalty IV for $461 million, with potential additional payments; launching an 8.5 million share offering to fund the deal.