Stock Market Update & Analysis: Aug 8th

Global Markets

Canada

The Toronto Stock Exchange (TSX) rose on Thursday, buoyed by positive movements in several key areas, as gold and oil prices rose, a significant component of the Canadian market due to the country’s substantial mining and energy sector.

U.S.A

In the United States, major stock indices surged following the release of weekly jobless claims data. The data showed fewer new claims for unemployment benefits than anticipated, which alleviated concerns about a weakening labor market. This positive economic indicator helped drive investor confidence, leading to sharp increases in stock prices. The strong performance of U.S. stocks was likely bolstered by the belief that the economy remains resilient, supporting a positive market sentiment.

Europe

European markets,  were mostly down, primarily driven by declines in the technology sector. Tech stocks across Europe, much like their counterparts in the U.S., have been under pressure recently. Technology companies are a significant part of European indices, their poor performance dragged down broader market indexes in the region. In the UK, stocks also dropped as they were pressured under the ex-dividend trade.

Japan

In Japan, stock markets encountered renewed challenges. Domestic chip stocks, which are integral to Japan’s tech sector, mirrored Wall Street’s overnight losses. This synchronicity suggests global tech trends are influencing Japanese markets, reflecting investor concerns about the global tech sector’s health. Additionally, the minutes from the Bank of Japan’s recent meeting revealed a hawkish stance among its board members. A hawkish tone generally indicates a propensity towards tightening monetary policy or raising interest rates, which can negatively impact stock prices due to anticipated higher borrowing costs and potential slower economic growth.

Oil Prices

Oil prices held steady following two sessions of gains. This stability suggests that recent movements in oil prices might be stabilizing after a period of volatility.

Corporate Stock News

• Beyond Meat Inc: Beyond Meat beat revenue estimates for Q2 and raised its annual sales forecast despite declining volumes.
• Bumble Inc: Bumble cut its annual revenue growth forecast, causing a decline in its share price.
• CF Industries Holdings Inc: CF Industries exceeded Q2 profit expectations due to higher ammonia production and nitrogen prices.
• Cheniere Energy Inc: Cheniere’s Q2 profit fell 36% due to lower LNG prices and reduced volumes.
• Corpay Inc: Corpay forecast lower-than-expected Q3 profit as it struggles with slower recovery in its lodging business.
• CRH PLC: CRH raised its full-year guidance after reporting a 12% rise in Q2 core profit.
• Eli Lilly and Co: Eli Lilly raised its annual profit forecast, with Zepbound sales surpassing $1 billion for the first time in a quarter.
• Energy Transfer LP: Energy Transfer raised its full-year profit forecast following strong Q2 results and increased capital spending.
• EPAM Systems Inc: EPAM beat Q2 profit and revenue estimates, though it slightly reduced its full-year revenue outlook.
• Equinix Inc: Equinix raised its annual earnings forecast, driven by strong demand for data center services.
• Exscientia PLC & Recursion Pharmaceuticals Inc: Recursion Pharmaceuticals agreed to acquire Exscientia for $688 million in an all-stock deal to enhance AI-driven drug development.
• Manulife Financial Corp: Manulife’s quarterly profit exceeded expectations, driven by a 40% increase in earnings from its Asia operations.
• Marathon Oil Corp: Marathon Oil missed Q2 profit estimates due to lower natural gas prices and production declines.
• McKesson Corp: McKesson reported weaker-than-expected Q1 revenue but raised its full-year profit forecast.
• Monster Beverage Corp: Monster Beverage missed Q2 sales expectations as consumer spending on energy drinks declined.
• Nutrien Ltd: Nutrien beat Q2 profit estimates due to higher potash sales, but lowered its retail profit forecast due to Brazilian market weakness.
• Occidental Petroleum Corp: Occidental beat Q2 profit estimates and increased its capital spending guidance following a major acquisition.
• Restaurant Brands International Inc: Restaurant Brands exceeded revenue expectations for Q2, buoyed by strong performance at Tim Hortons and Burger King.
• Robinhood Markets Inc: Robinhood surpassed Q2 earnings expectations, driven by strong interest in meme stocks and cryptocurrencies.
• Siemens: Siemens’ supervisory board plans to expand its management board to accelerate its technology-focused transition.
• Viasat Inc: Viasat raised its fiscal year 2025 revenue forecast, reflecting strong demand in aviation and defense markets.
• Warner Bros Discovery Inc: Warner Bros Discovery wrote down TV assets, resulting in a larger-than-expected loss despite an increase in direct-to-consumer subscribers.