Stock Market Update & Analysis: July 29th, 2024

Global Markets

Canada

The Toronto Stock Exchange (TSX) experienced a decline, caused by the almost 2 percent drop in oil price,  and the loss of earlier gains in gold.

USA

U.S. stock indexes initially opened higher but fell after a shift investor sentiment, that was likely influenced by ongoing uncertainties related to the Federal Reserve’s policy decisions and key labor data expected this week.

Europe

European shares started the week on a positive note but lost their gains as positive sentiment around earnings evaporated.

Japan

Japan’s Nikkei index rebounded from previous losses, influenced by Wall Street’s positive closing on Friday, while he Japanese Yen remained steady.

Currencies and Commodities 

• U.S. Dollar Index: The U.S. dollar index inched up against a basket of currencies, indicating a slight strengthening of the dollar.
• Oil Prices: Oil prices slipped after an earlier rise driven by fears of a widening conflict in the Middle East.

Corporate Stock News

• Abbott Laboratories: Shares fell premarket after a jury ordered the company to pay $495 million related to its formula for premature infants, which allegedly caused a serious bowel disease. Abbott plans to appeal the decision.
• Airline Group Lufthansa: Suspended flights to Beirut up to and including July 30 due to the current situation in the Middle East.
• Apple Inc: AI features are delayed and will miss the initial release of upcoming iPhone and iPad software updates. Apple plans to roll out these features by October.
• BHP Group Ltd: The union at BHP’s Escondida mine in Chile, the world’s largest copper mine, has urged members to reject a final contract offer, potentially leading to a strike.
• Boeing Co: Kelly Ortberg, former Rockwell Collins chief, is a serious candidate for Boeing’s next CEO, alongside other candidates including Spirit AeroSystems CEO Pat Shanahan and Boeing COO Stephanie Pope.
• ConocoPhillips: Forecasts Q2 earnings to be between $2.70 and $2.90 per share, exceeding analyst estimates.
• Disney Inc: Marvel’s “Deadpool & Wolverine” had a record domestic opening of $205 million, making it the highest-grossing R-rated film debut. The film also earned $233.3 million internationally.
• Docebo: Target price set to CAD 60 by Craig Hallum Capital Group with a Buy rating.
• Google: Target price set to $196 by Stifel Nicolaus with a Buy rating.
• GSK Plc: Settled a lawsuit confidentially over its discontinued heartburn drug Zantac, which was alleged to have caused cancer.
• Guardant Health Inc: The FDA approved the company’s blood test for detecting colorectal cancer, potentially becoming the first screening test eligible for Medicare coverage for adults 45 and older.
• Honda Motor Co Ltd: Shares in Mitsubishi Motors surged as media reported talks about joining Nissan’s and Honda’s strategic partnership, focusing on electric vehicle components and AI in automotive software.
• IBM: Target price set to $215 by Evercore ISI with a Buy rating.
• Koninklijke Philips NV: Reported stronger-than-expected Q2 results, with adjusted EBITA rising 9.3% to €495 million. The company benefited from cost savings and a significant insurance payout.
• McDonald’s Corp: Reported a surprise decline in global comparable sales, the first drop in 13 quarters, attributed to budget-conscious customers and weaker performance in key international markets.
• Microsoft Corp: Investors will be watching for updates on Azure’s growth and AI business contributions when the company reports earnings on Tuesday.
• MGM Resorts International: BetMGM expects to post similar losses in the second half of the year as the first half due to increased investment in marketing and customer experience.
• Nasdaq Inc: Announced that Thoma Bravo will sell 41.6 million shares through a secondary public offering, reducing its stake in Nasdaq from nearly 15% to 7.4%.
• Northern Oil and Gas Inc & Vital Energy Inc: Acquiring U.S. shale assets from Point Energy Partners for $1.1 billion. Vital will acquire an 80% stake, and Northern will buy the remaining 20%.
• Occidental Petroleum Corp & Permian Resources Corp: Occidental is selling Delaware Basin assets to Permian Resources for about $818 million as part of a plan to divest up to $6 billion in assets.
• Petroleo Brasileiro SA Petrobras: Made a non-binding offer to acquire a significant stake in Galp Energia’s offshore oil discovery in Namibia, potentially becoming the operator of the Mopane field.
• Swiss Pharmaceutical Company Roche: Plans to fast-track its anti-obesity drugs to compete with Eli Lilly and Novo Nordisk following promising data on a weight-loss pill.
• Union Pacific Corp: Interfered in a federal safety audit by coaching employees on responses, leading to the audit’s discontinuation. A Senate probe is underway.
• Walt Disney Inc: “Deadpool & Wolverine” achieved record box office results, leading the domestic market and performing strongly internationally. This marks a rebound for Disney following previous underperforming releases.