Market Update & Analysis for October 16th, 2024
Global Markets
Canadian Markets
Canada’s TSX rose half a percent bolstered by a increase in gold, as investors reacted to a mix of domestic economic indicators. Manufacturing sales in Canada declined by 1.3% in August compared to July, reaching their lowest level since January 2022.
American Markets
In the U.S., stocks rebounded from earlier losses, driven by a resurgence in consumer staples and gold-related stocks. Nvidia rebounded from heavy losses in the previous session, putting some positive strength back into the Nasdaq.
European Markets
In Europe, the sentiment was less optimistic, particularly in the technology and luxury sectors, which saw declines following disappointing earnings reports from major players like ASML and LVMH. These results raised concerns about broader market trends in these high-profile industries. Moreover, caution looms ahead of the European Central Bank’s upcoming policy decision, with investors eager to gauge potential shifts in monetary policy that could impact economic growth.
Japanese Markets
Japan’s Nikkei index broke a four-day winning streak, ending lower as investors reassessed market conditions, while the yen remained flat.
Chinese Markets
Chinese equities were volatile, reflecting uncertainty amid ongoing economic challenges.
Corporate Stock News
Alimentation Couche-Tard Inc: Artisan Partners, a U.S. fund, urged Seven & i Holdings to allow Alimentation Couche-Tard to negotiate a $47 billion takeover. Artisan criticized a recent restructuring plan by Seven & i as insufficient.
ASML Holding NV: ASML forecasted lower-than-expected sales for 2025 due to sustained weakness in the semiconductor market, leading to a significant drop in its shares.
Barrick Gold Corp: Barrick reported third-quarter gold production of 943,000 ounces, below the expected 975,000 ounces, primarily due to lower output at its Nevada mines. An expansion at its Carlin mine is anticipated to boost future production.
Boeing Co: A federal judge ordered Boeing and the U.S. Justice Department to clarify the impact of diversity policies on the selection of an independent monitor before approving a plea deal related to regulatory fraud.
Delta Air Lines Inc: Delta announced a pause on flights between JFK and Tel Aviv through March due to safety concerns amid escalating conflict in Israel.
Empire Oil Ltd: The extension application for its Norman Wells facility has been paused pending an environmental assessment report from the Canada Energy Regulator.
J.B. Hunt Transport Services Inc: The trucking firm reported third-quarter profits exceeding estimates, driven by a 5% increase in intermodal volumes, resulting in a revenue of $3.07 billion.
JPMorgan Chase & Co: CEO Jamie Dimon announced plans to expand into Kenya and Ivory Coast as part of the bank’s growth strategy in Africa.
KKR & Co Inc: KKR is preparing to sell Singapore-based Goodpack, which could be valued at around $1.8 billion, with a formal sale process expected soon.
LVMH: The luxury giant reported a 3% decline in third-quarter sales, marking its first quarterly drop since the pandemic, attributed to weakened demand in China and Japan.
Meta Platforms Inc: A federal judge ruled that Meta must face lawsuits from U.S. states over claims that its platforms are addictive and contribute to mental health issues among teens.
New York Community Bancorp Inc: The regional lender announced it will rebrand as Flagstar Financial, effective October 25, alongside a change of its stock symbol to “FLG.”
Omnicom Group Inc: Omnicom exceeded Wall Street estimates for third-quarter profit and revenue, bolstered by increased advertising spending, reporting revenue of $3.88 billion.
Paramount Global: The board approved bonus payments for its three co-CEOs even if they leave the company, providing additional compensation alongside restricted shares.
Rio Tinto: The company reported higher iron ore shipments in the third quarter and is on track for first production from its Simandou project in Guinea next year.
Ryanair Holdings Plc: The airline expects to revise its passenger traffic estimates downward due to anticipated aircraft delivery delays from Boeing.
Stellantis NV: Stellantis is recalling over 20,000 hybrid SUVs in the U.S. due to a brake pedal issue that could lead to unintended disengagement.
United Airlines Inc: The airline forecasted stronger-than-expected profits for the upcoming quarter, reporting adjusted earnings of $3.33 per share for the third quarter.
