Market Analysis & Top Stock News: Sept 24th, 2024

Global Markets

Canadian Markets

Canada’s main stock index, the TSX, rose on Tuesday, buoyed by a lift in commodity prices linked to fresh monetary stimulus measures implemented in China. With oil and metals on the rise as a result, Canada’s energy and mining stocks were the catalyst for the move higher.

American Markets

In US markets, stocks rose moderately as investors embraced optimism surrounding the economy’s potential to achieve a “goldilocks” scenario—a state where growth remains stable without triggering excessive inflation or the need for aggressive interest rate hikes. This sentiment suggests a belief that the economy can sustain its growth trajectory while maintaining manageable inflation levels, a scenario that many investors view favorably.

Japanese Markets

Japanese stocks rose over half a percent, boosted by Insurance stocks, Textile stocks and Pulp stocks.

Chinese Markets

Chinese stocks rose over 4 percent as the People’s Bank of China signaled they are to lower borrowing costs and inject more liquidity into the weakened economy.

European Markets

European markets rose across the board. boosted by China’s stimulus measures, which saw a boost in mining and energy sectors, alongside luxury good stocks. UK data showed wages increased at the lowest pace since 2022.

Currencies

In the currency markets, the Chinese yuan reached a 16-month high against the U.S. dollar, signaling increased confidence in China’s economic recovery following the monetary stimulus. Meanwhile, the Australian dollar hit a peak for 2024, driven by the Reserve Bank of Australia’s commitment to addressing inflation. These movements in currency values highlight the interconnectedness of global markets and the influence of central bank policies on exchange rates. The U.S. dollar index showed signs of weakness, reflecting shifting investor sentiment and a potential recalibration of risk appetites among global investors.

Corporate Stock News

• Amneal Pharmaceuticals Inc: The company has filed a lawsuit against Colorado to block a state law requiring it to provide free generic EpiPens, claiming it violates the Fifth Amendment.
• Amazon.com Inc: Amazon and other firms are purchasing carbon offset credits valued at $180 million to support conservation efforts in the Brazilian Amazon, marking LEAF’s first deal in the region.
• Alphabet Inc: Google is developing an AI assistant for Volkswagen drivers, showcasing its ambition in enterprise AI applications, according to Google Cloud CEO Thomas Kurian.
• B. Riley Financial Inc: President Kenny Young resigned from his role and will serve as a consultant for one year following his departure.
• Baidu: HSBC Securities downgraded the stock from Buy to Hold, with a 12-month target price of $100.
• Biogen Inc: Biogen and UCB reported positive results for their experimental lupus treatment in a late-stage trial, marking a turnaround from earlier failures.
• Brookfield Asset Management Ltd: UAE’s Masdar has agreed to acquire green energy firm Saeta Yield from Brookfield for $1.4 billion. The deal includes 745 megawatts of mostly wind assets and 1.6 gigawatts of projects in development in Spain and Portugal, marking a significant transaction in the Iberian region.
• Canadian National Railway Co: Labor negotiations have begun with Unifor, representing over 3,600 workers, as their current agreement expires on December 31, 2024.
• Chevron Corp, Hess Corp & Exxon Mobil Corp: The U.S. FTC is expected to approve Chevron’s acquisition of Hess, with a final arbitration decision anticipated in May 2025.
• Cineplex Inc: The cinema chain must pay nearly $39 million after a tribunal found it engaged in deceptive marketing practices.
• Constellation Energy Corp & Microsoft Corp: Microsoft is expected to pay a premium to Constellation Energy as part of a long-term power purchase agreement related to the Three Mile Island plant.
• Deere & Co: Donald Trump threatened a 200% tariff on Deere’s imports if the company moves production to Mexico, impacting its share price.
• Eli Lilly and Co: Japan’s health ministry approved Eli Lilly’s Alzheimer’s drug, donanemab, adding to treatment options available to patients.
• Exxon Mobil Corp: California and environmental groups filed a lawsuit against Exxon, accusing it of contributing to global plastic pollution.
• Fox Corp & News Corp: A hearing concluded regarding the control of Rupert Murdoch’s media empire, with the outcome still uncertain.
• General Motors Co: GM’s China joint venture with SAIC announced discounts of up to 26% on the Buick Envision Plus crossover.
• Hawaiian Electric Industries Inc: The company plans to sell up to $500 million in common stock to fund its share of the Maui wildfire settlement.
• Johnson & Johnson: A subsidiary’s bankruptcy settlement attempt is facing legal challenges as lawsuits related to talc products continue.
• Levi Strauss & Co: Revenue goals may be delayed due to rising living costs affecting Western consumers, according to CEO Michelle Gass.
• Luminar Technologies Inc: The company has cut 30% of its workforce as part of a restructuring plan, leading to significant cash charges.
• Meta Platforms Inc: Meta plans to unveil celebrity voices for its AI chatbot and announce new augmented-reality devices this week.
• Novo Nordisk A/S: Senator Bernie Sanders will question Novo Nordisk’s CEO over the high costs of its diabetes and weight-loss medications.
• RH PLC: CRH CEO Albert Manifold will retire at year-end, with CFO Jim Mintern stepping into the role.
• Regeneron Pharmaceuticals Inc: Leerink downgraded the stock from Outperform to Market Perform.
• Salesforce: Piper Jaffray upgraded the stock from Equal Weight to Overweight.
• Spirit AeroSystems Holding Inc: The company is investigating record-keeping issues related to multiple plane programs but has not found safety concerns.
• Stellantis NV: The automaker is searching for a new CEO as it plans to strengthen its North American operations.
• Textron Inc: About 5,000 workers at Textron’s Wichita campus have gone on strike, affecting its service and manufacturing operations.
• UBS Group AG: CEO Sergio Ermotti reported that UBS is ahead of schedule in its cost-saving efforts following its integration of Credit Suisse.
• Unilever PLC: CEO Hein Schumacher advocates for a robust global plastics treaty to guide long-term investments in alternative packaging.
• Visa Inc: The U.S. DOJ is expected to file a lawsuit against Visa for allegedly monopolizing the debit card market.
• Zions Bancorporation NA: California Bank & Trust plans to acquire four FirstBank branches in a deal expanding its Coachella Valley presence.