Market Update & Analysis: October 15th, 2024

Global Markets

Canadian Markets

Canada’s TSX dropped on Tuesday,  on the back of a significant drop in crude oil prices, which fell nearly 5% and copper prices also dropped in response to disappointing economic data from China.

American Markets

In the U.S., stock indices also faced downward pressure. UnitedHealth Group dropped on a reduced forecast outlook. The tech-heavy Nasdaq was hit hard on the back of chip stocks, as AML fell 16% on a reduction to the company’s guidance.

European Markets

European markets dropped after earlier reaching a two-week high. The decline was driven by weakness in mining and energy sectors, reflecting the broader concerns about commodity prices and their impact on economic growth.

Chinese Markets

Chinese stocks faced downward pressure as investors remained on edge, waiting to see the scale and speed of government-led initiatives aimed at supporting the economy. Concerns over sluggish growth figures have kept market participants wary, stifling optimism and contributing to a bearish sentiment.

Japanese Markets

Japan’s Nikkei 225 managed to rise above the 40,000-point level, achieving a three-month high. The rally was largely attributed to a weaker yen, which enhanced the competitiveness of Japanese exports and buoyed investor sentiment, as a favorable currency exchange rate tends to benefit the country’s export-driven economy.

Corporate Stock News

Bank of America Corp: Reported a decline in Q3 profit due to reduced income from customer interest payments, with net interest income falling 3% to $14 billion. Net income dropped to $6.9 billion from $7.8 billion a year earlier.

Boeing Co: Filed a registration statement to raise up to $25 billion through debt securities and stock offerings. The company is also facing layoffs and financial challenges amid ongoing strikes and debt commitments.

Coty Inc: Estimated lower first-quarter sales growth, projecting 4-5% growth compared to a previous forecast of 6%. The cosmetics maker is ramping up cost-reduction efforts.

Crane NXT Co: Shares in De La Rue surged after announcing the sale of its authentication business for $391.3 million to Crane NXT, aimed at strengthening its finances.

Deutsche Bank AG: Shares fell following the sale of 16 million shares, impacting the bank’s standing in the DAX index after a significant gain earlier this year.

Ericsson: Reported Q3 core earnings and sales above expectations, with a notable recovery in North American demand for 5G equipment. Net sales were down 4% to 61.8 billion Swedish crowns.

Frontier Communications Parent Inc & Verizon Inc: Shareholder concerns emerged regarding Verizon’s $9.6 billion acquisition of Frontier, with major investors planning to vote against the deal due to perceived undervaluation.

HSBC Holdings: Reviewing expenses and operations at its China digital wealth unit, Pinnacle, which could lead to layoffs and a shift in strategy.

Intesa Sanpaolo: Under investigation in Italy for illegal data spying on customer accounts by a former employee.

Johnson & Johnson: Raised 2024 profit and sales forecasts after reporting strong oncology drug sales. Adjusted profit for Q3 was $2.42 per share, exceeding estimates.

Microsoft Corp: Announced that Sebastien Bubeck, VP of GenAI research, is leaving for OpenAI, with uncertainty regarding his new role.

Phillips 66: Will sell its 49% stake in Coop Mineraloel AG for $1.24 billion, marking progress in its divestiture goals.

TotalEnergies SE: Expects a sharp decline in Q3 downstream results due to a 65% drop in refining margins amid lower global oil prices.

UBS Group AG: Required to enhance emergency plans following its acquisition of Credit Suisse, according to Swiss regulator FINMA.

UnitedHealth Group Inc: Reported increased medical costs and a higher medical loss ratio. Adjusted profit of $7.15 per share beat estimates, with revenue reaching $100.8 billion.

Walgreens Boots Alliance Inc: Plans to close 1,200 stores over three years amid challenges in consumer spending. The company narrowly beat Q4 profit estimates.

Warner Bros Discovery Inc: Set to launch the Max streaming service across seven Asian markets on November 19, expanding its global reach.

Wolfspeed Inc: Secured $750 million in government grants for a new manufacturing facility in North Carolina, boosting investor confidence.