Market News & Analysis: November 4th, 2024

Global Markets

Canadian Markets

Canada’s main index dropped slightly, despite a a jump in oil prices. The drag on the index was largely attributed to a steep 10% drop in shares of BCE Inc., one of Canada’s major telecommunications companies, following the announcement of its acquisition of Ziply, a regional broadband and telecommunications provider. The significant dip in BCE shares reflects investor concerns over the acquisition, likely stemming from uncertainties around integration costs and potential impacts on BCE’s financial position.

American Markets

American stock markets were mixed as investors adopted a cautious approach, bracing for a pivotal week marked by the upcoming U.S. presidential election and an anticipated policy decision from the Federal Reserve. The election outcome could have far-reaching implications for economic policy and market sentiment, while the Fed’s announcement is expected to provide critical insights into the central bank’s future monetary stance amid economic uncertainty.

European Markets

Mainland European markets traded down. Technology stocks led the declines as investors remained concerned about high valuations and the sector’s sensitivity to current economic headwinds. However, resource-linked sectors such as mining and oil posted gains, buoyed by stronger commodity prices.   UK markets rose moderately on energy stocks, as sterling also rose.

Corporate Stock News

Alphabet Inc, Equinix Inc & Meta Platforms Inc: U.S. tech companies expressed concerns to Vietnam’s government that a proposed data protection law could stifle growth for social media and data centers. The law, proposed by the Ministry of Public Security, aims to increase government access to data.

Amazon.com Inc: U.S. energy regulators rejected an amended agreement for an Amazon data center linked to Talen Energy’s nuclear plant in Pennsylvania, citing concerns over electricity costs and grid reliability. FERC Commissioner Mark Christie highlighted the complexities of such arrangements, while FERC Chairman Willie Phillips advocated for global AI competition.

Apple Inc: The EU is assessing Apple’s iPad operating system’s compliance with tech regulations. Additionally, the National Labor Relations Board accused Apple of preventing employees from discussing pay equity and pressuring a wage survey organizer.

B. Riley Financial Inc: Shares dropped after disclosing additional impairments from investments in Franchise Group, which filed for Chapter 11 bankruptcy. Co-CEO Bryant Riley stated there would be no equity recovery for investors.

Berkshire Hathaway Inc: The company reduced its Apple holdings by 25%, with cash reserves reaching a record $325.2 billion. Berkshire reported a 6% decline in quarterly operating profit, and no stock buybacks were conducted.

Blackstone Inc: Blackstone aims to expand its private wealth business across Europe, targeting affluent clients with minimum investments of $10,000-$25,000. The firm, which has grown private wealth assets to $250 billion, also plans to acquire Retail Opportunity Investments Corp for $3.4 billion.

Boeing Co: Factory workers on the U.S. West Coast will vote on a revised contract offering a 38% wage increase over four years, following a seven-week strike.

Braskem SA: The company and 19 individuals were accused of environmental crimes, including pollution and using false reports related to salt mining in Maceio, Brazil. Police investigations implicate Braskem executives and contractors.

Catalent Inc & Novo Nordisk A/S: EU regulators are set to decide on Novo Holdings’ acquisition of Catalent by Dec. 6. The deal, focused on increasing obesity drug Wegovy production, is expected to close by year-end.

Charter Communications Inc: Bernstein raised the target price from $380 to $385 after the company reported fewer-than-expected broadband subscriber losses.

Chevron Corp: Raymond James raised the target price from $170 to $175 following strong third-quarter earnings.

Cogeco Inc: Canaccord Genuity raised the target price from C$65 to C$77, citing signs of financial stability.

eBay Inc: A Massachusetts couple subjected to harassment by eBay employees can pursue punitive damages. The harassment, triggered by a critical newsletter, resulted in a $3 million deferred prosecution agreement, but eBay still faces a civil lawsuit.

Eni SpA: Eni finalized a $1 billion sale of offshore assets in Alaska to Hilcorp, aiding the company’s plan to raise €8 billion by 2027 through asset sales, despite OPEC+ market volatility.

Fairfax Financial Holdings Ltd: Scotiabank raised the target price from C$2,100 to C$2,200, reflecting strong third-quarter results.

Hecla Mining Co: Appointed Rob Krcmarov as CEO effective Nov. 7, replacing interim CEO Catherine Boggs. Hecla operates silver mines in Alaska, Idaho, and Canada.

Icf International Inc: Canaccord Genuity raised the target price from $187 to $223, following an improved 2024 outlook.

Intra-Cellular Therapies Inc: JP Morgan raised the target price from $81 to $89 after sales of Caplyta increased.

Intel Corp, Nvidia Corp & Sherwin-Williams Co: Intel will exit the Dow Jones Industrial Average, replaced by Nvidia and Sherwin-Williams. Intel’s struggles have led to a 54% drop in share price this year.

Lockheed Martin Corp: Australia canceled a Lockheed Martin military satellite project, choosing a multi-orbit satellite system instead, with a defense budget remaining at A$9-12 billion.

LyondellBasell Industries NV: The company announced it will close its Houston refinery by early 2025, citing declining crude supplies and evolving energy markets. The closure was delayed from 2023 due to strong fuel margins.

Meta Platforms Inc & Nvidia Corp: The U.S. Supreme Court will review appeals from Meta and Nvidia to block securities fraud lawsuits, which follow rulings that weakened SEC regulatory power.

Nio Inc: Approved to build a third factory in China, increasing production capacity to 1 million vehicles annually. Construction has started, but mass production timing is unclear.

Nvidia Corp: CEO Jensen Huang urged SK Hynix to speed up HBM4 chip supply by six months to meet AI technology demand. SK Hynix has committed to an accelerated delivery timeline.

Ryanair Holdings Plc: Lowered its 2026 passenger target from 215 million to 210 million due to Boeing delivery delays. Despite an 18% profit drop, CEO Michael O’Leary expressed optimism for Q3, anticipating moderating fare declines.

Tesla Inc: Reported a 5.3% year-over-year decline in China-made EV sales for October, while rival BYD saw strong growth. Despite promotions, Tesla’s revenue lagged behind BYD in the last quarter.