Market Update & Analysis for June 27th

Global Markets

June 27th, 2024

Canadian Markets: The index saw slight gains, supported by higher crude oil prices. However, investor caution persisted ahead of key U.S. inflation data expected later in the week.

American Markets: After an initial weakness, U.S. markets turned positive across the board. This shift was likely influenced by changing sentiment and technical based moves.

European Markets: Market activity in Europe was subdued as investors refrained from making major investments ahead of the upcoming first round of French elections.

Japanese Markets: Japanese markets fell as the yen weakened beyond 160 per U.S. dollar, prompting concerns about potential currency intervention.

Chinese Markets: Stock markets closed lower despite an increase in industrial profits, which grew at a slower rate in May compared to previous periods.

Currency Markets: The U.S. dollar depreciated, leading to an increase in gold prices. This movement typically reflects investors’ concerns or uncertainties in the financial markets.

Market Analysis: Global markets are seeing slightly renewed strength driven by continued expectations of future interest rate cuts. However, investors are simultaneously contending with concerns over broader economic conditions, including potential slowdowns in global growth and inflationary pressures. Geopolitical tensions and their potential ramifications continue to contribute to a murky market outlook, as investors brace for direction going into the quiet trading summer session.

Corporate Stock News

Altria Group Inc (MO): Submitted PMTAs for oral nicotine pouch products to FDA.

BlackBerry (BB:CA): Beat revenue estimates for Q1 due to strong demand for cybersecurity services.

Boeing Co (BA): Sanctioned by NTSB for disclosing non-public details of 737 MAX investigation.

Campari Investigation (DVDCF): Milan prosecutors are investigating the holding company controlling Campari due to undisclosed reasons.

Carlyle Group (CG) & KKR & Co (KKR): Won auction for Discover Financial’s (DFS) $10 billion student loan book.

Citigroup Inc (C): Head of risk data and analytics left amid ongoing reorganization.

Fairfax India Holdings (FIH-U:CA): Sold stake in CSB Bank to comply with regulations.

GSK Plc (GSK): Shares fell after CDC narrowed usage recommendation for RSV vaccines.

Infosys Ltd (INFY): CEO settled charges related to insider trading prevention lapses.

Jefferies Financial Group (JEF): Beat Q2 profit estimates due to higher fees from advising and underwriting.

Legal & General (LGEN:LSE): Selling stake in Glencore due to concerns over its thermal coal production.

Levi Strauss & Co (LEVI): Missed Q2 revenue expectations but maintained annual profit forecast.

Manulife Financial (MFC:CA): STA Research downgraded the stock to “Underperform” with a target price of $29, up from $25 on high valuation.

McCormick & Company Inc (MKC): Named new CFO effective December 1.

Merck & Co Inc (MRK): FDA declined approval for lung cancer treatment.

Micron Technology Inc (MU): Beat Q3 revenue estimates driven by strong memory chip demand, but Q4 forecast disappointed.

Nvidia (NVDA): Truist Financial has reiterated its “Buy” rating for Nvidia and raised the target from $128.8 to $140.

Rivian Automotive Inc (RIVN) (VWAGY): Announced it will use the $5 billion investment from Volkswagen for upcoming model development.

Tesla (TSLA): Robert W. Baird & Co. maintained a “Buy” rating on Tesla with a target of $280.

Toyota Motor Corp (TM): Global production fell in May for fourth straight month, particularly in China.

Uber Technologies Inc (UBER): Offering credits to commuters who switch to public transport for five weeks.

UBS (UBS) and Credit Suisse: UBS is seeking clarity from the Swiss government regarding additional capital requirements post its acquisition of Credit Suisse.

Vanda Pharmaceuticals Inc (VNDA): Future Pak withdrew offer to acquire Vanda due to lack of engagement.

Verona Pharma Plc (VRNA): FDA granted approval for its chronic lung disease treatment.

WestJet Airlines (ONEX:CA): Cancelling flights again after union rejection of pay offer and second strike notice.