Market Analysis & Top Stock News: Aug 29th, 2024

Global Market Analysis

Canada

Canadian markets jumped, driven by a significant rises in oil and gold prices.  CIBC boosts banking sector for a second day on its earning’s beat. Canadian economists expect the Bank of  Canada to cut interests faster and deeper in order to offset current economic woes.

U.S.A

American  indices showed strong gains after poor overnight futures readings. The Nasdaq, S&P 500, and Dow Jones Industrial Average swung  higher as investors processed Nvidia’s latest quarterly results. Nvidia reported strong demand for its AI chips, which suggests robust growth prospects for the tech sector. However, despite the positive outlook for AI, Nvidia’s stock turned red.

Europe

European shares climbed, approaching record highs last seen in mid-June. The rise was led by strong performances in the technology sector, which buoyed the broader market. European investors were encouraged by the resilience of tech stocks amidst broader economic uncertainties.

Japan

In Japan, the Nikkei index closed flat, and reflects a cautious sentiment among investors over the yen and its current impact and direction on financial markets.

China

Chinese stocks dropped half a percent, primarily due to disappointing earnings reports from the financial sector. Weak results in this key industry raised concerns about the overall health of the Chinese economy.

Currency and Commodities:

The euro depreciated against the U.S. dollar following German inflation data, which led to increased expectations for the European Central Bank (ECB) to ease interest rates. This shift in expectations weakened the euro as investors anticipated lower rates would affect the currency’s value.

Oil prices inched up, driven by persistent supply concerns related to Libya. Ongoing instability in the region has raised worries about potential disruptions in oil supply, contributing to higher oil prices.

Corporate Stock News

Abu Dhabi National Oil Company (ADNOC): ADNOC is completing due diligence for a potential acquisition of Covestro, with the deal valued around €11.7 billion.

Alphabet Inc: Google is considering a major data center investment in Vietnam, potentially becoming the first major U.S. tech firm to do so in the Southeast Asian nation. The data center could be operational by 2027.

Applied Digital Corp: The data center operator reported a larger-than-expected fourth-quarter loss due to high expenses related to its facilities and equipment. The company posted a revenue of $43.7 million, surpassing estimates but reported a net loss that widened significantly.

Best Buy Co Inc: The electronics retailer raised its annual profit forecast, driven by improved cost control measures, despite the impact of discounts and promotions. Shares rose in premarket trading.

Birkenstock Holding Plc: The German sandal maker missed third-quarter profit expectations due to high expansion costs. Gross profit margin fell, and shares were down in premarket trading.

BioMarin Pharmaceutical Inc: The biotech firm plans to cut around 225 jobs as part of a strategy update, with estimated one-time costs of $30-35 million. The reductions are linked to changes in its hemophilia gene therapy strategy.

Campbell Soup Co: The company forecasted annual sales growth above Wall Street expectations, expecting a rise of 9-11% for fiscal 2025 due to previous price hikes and steady demand.

Canadian Imperial Bank of Commerce (CIBC): CIBC reported a rise in third-quarter profit due to reduced loan loss provisions. The bank set aside lower provisions in commercial banking and saw a significant increase in net income.

Chipotle Mexican Grill Inc: Chipotle appointed Adam Rymer as CFO and announced that Jack Hartung will serve as president and chief strategy officer starting October.

Cooper Companies Inc: The medical device maker surpassed revenue expectations for the third quarter and raised its annual profit forecast, driven by strong demand for its contact lenses.

CrowdStrike Holdings Inc: The cybersecurity firm lowered its revenue and profit forecasts following a global outage from a faulty software update, though second-quarter revenue exceeded estimates.

Dollar General Corp: The discount retailer cut its forecast for same-store sales and profit due to decreased spending on higher-margin items, leading to a drop in shares.

Diehl Aviation: The German aircraft parts supplier has started constructing a $46 million plant in Queretaro, Mexico.

Goldman Sachs Group Inc: The Federal Reserve adjusted Goldman Sachs’ capital buffer requirement downward to 6.2% from 6.4%, effective October 1.

HP Inc: HP lowered its fourth-quarter profit forecast due to fluctuating demand and competitive pricing in the PC market, despite a revenue increase.

Intel Corp: Senator Rick Scott questioned Intel’s plans to cut over 15,000 jobs despite receiving substantial U.S. grants for chip production, seeking details on the impact on manufacturing investments.

Merck & Co Inc: Merck discontinued two late-stage trials for its Keytruda drug after it failed to meet key goals in treating certain cancers.

NetApp Inc: NetApp raised its annual revenue and profit forecasts, driven by strong demand for its cloud services. The company also announced CFO Mike Berry’s upcoming retirement.

NVIDIA Corp: NVIDIA’s forecast did not meet high investor expectations despite strong second-quarter revenue and a substantial share buyback. Demand for its AI chips continues to be robust.

ONEOK Inc: ONEOK announced two major deals totaling $5.9 billion to expand its presence in key U.S. regions, which are expected to immediately boost earnings and free cash flow.

Polestar Automotive Holding Uk Plc: The electric vehicle maker reported a narrower operating loss for the second quarter but faced challenges with funding and sales.

Salesforce Inc: Salesforce beat second-quarter revenue and profit expectations, benefiting from increased enterprise cloud spending. The company also announced the departure of its CFO, Amy Weaver.

Tesla Inc: Tesla sought a lower tariff from Canada before the country imposed a 100% duty on Chinese-made electric vehicles.

Toyota Motor Corp: Toyota reported a sixth consecutive month of global production declines, though the drop was less severe compared to the previous month. Sales also fell slightly, particularly in China and the U.S.

UBS Group AG: UBS appointed Janice Hu as head of its China business, replacing Eugene Qian, who is stepping down for personal reasons.

United States Steel Corp: Nippon Steel plans an additional $1.3 billion investment in U.S. Steel’s mills as part of its acquisition proposal, aiming to increase capacity and extend production life.