Market News & Analysis: Oct 25th, 2024

Global Markets

Canadian Markets

Canada’s dropped on Friday, driven largely by the complex interplay of rising crude oil prices and losses in the metals sector. While higher crude prices typically support energy stocks, the gains were not enough to offset declines in materials and other sectors. In economic news, retail sales for August showed a modest increase of 0.4%, primarily propelled by the automotive sector. However, this uptick was overshadowed by broad declines across most sectors, indicating a cautious sentiment among investors.

U.S. Stock Markets

U.S. stock indexes were mixed. Declines in Treasury yields offered a brief respite to equities. Lower yields can enhance the appeal of stocks, but market participants remained cautious, weighing various economic indicators and corporate earnings as the US election nears. Investors are closely monitoring Federal Reserve signals regarding future interest rate cuts, which may impact market direction in the coming months.

European Markets

In Europe, the main indexes finished mixed, as they oscillated between gains and losses, reflecting investor uncertainty. The market was poised for a weekly decline, exacerbated by a spate of disappointing corporate earnings that have dampened investor confidence. This lack of positive earnings surprises has created a challenging environment for European stocks, contributing to the overall volatility.

Chinese Markets

Chinese stocks posted gains for the second consecutive week, buoyed by government stimulus measures aimed at stabilizing the economy.

Japanese Markets

Japanese markets, recorded its second week of declines. Investor sentiment in Japan is being closely influenced by the results of upcoming elections and the anticipated policy decision from the Bank of Japan on Wednesday. Additionally, the yen weakened, reflecting broader market anxieties and speculation around future monetary policy.

Corporate Stock News

• Alphabet Inc: Missouri’s Attorney General launched an investigation into Google for alleged censorship of conservative speech, which Google denied.
• Apple Inc: iPhone sales in China fell 0.3%, while Huawei’s sales surged 42%. Apple’s market share in China decreased to 15.6%.
• Barrick Gold Corp: Mali accused the company of not fulfilling commitments in a recent agreement, which Barrick denied.
• Barclays PLC: The company won a court ruling that reduced a shareholders’ lawsuit regarding its “dark pool” trading platforms, improving settlement prospects.
• Capri Holdings Ltd & Tapestry Inc: Capri’s shares fell after a U.S. judge blocked its $8.5 billion merger with Tapestry, which plans to appeal.
• Centene Corp: Exceeded Wall Street profit estimates due to its commercial insurance business and maintained its annual profit forecast.
• Cincinnati Financial Corp: Reported a 14% profit decline in Q3 due to increased catastrophe losses, despite higher earned premiums.
• Capital One Financial Corp: Achieved a 1.6% increase in Q3 profit, driven by elevated interest rates and higher net interest income.
• Converge Technology Solutions Corp: Canaccord Genuity cut target price to C$6 from C$6.25, reflecting a reduced outlook for the upcoming quarter.
• Coursera Inc: RBC cut target price to $10 from $18 after the company lowered its near-term outlook in its third-quarter results report.
• Deckers Outdoor Corp: Beat estimates and raised its annual sales forecast due to strong demand for UGG and Hoka brands; Barclays raised target price to $190 from $180 after positive Q2 earnings.
• Digital Realty Trust Inc: Reported growth in funds from operations (FFO) and tightened its annual revenue forecast.
• Dentsply Sirona Inc: Voluntarily suspended sales of Byte teeth aligners while reviewing regulatory requirements and provided preliminary Q3 results.
• Dexcom Inc: Beat revenue and profit estimates but shares fell after reiterating a disappointing full-year sales forecast.
• Edwards Lifesciences Corp: Forecasted Q4 sales below expectations due to competition and softer demand, despite beating profit estimates.
• Hartford Financial Services Group Inc: Posted an 18% rise in Q3 profit, driven by strong underwriting gains and increased investment income.
• Healthpeak Properties Inc: Raised its annual FFO forecast and reported adjusted FFO in line with expectations.
• Honeywell International Inc: JPMorgan cut target price to $233 from $235 after the firm reported weaker-than-expected Q3 results.
• L3Harris Technologies Inc: Increased its annual profit and revenue forecasts amid strong defense spending.
• Las Vegas Sands Corp: Announced an $8 billion investment in Singapore’s Marina Bay Sands while missing quarterly profit expectations.
• Mohawk Industries Inc: Reported lower revenue due to weak demand for flooring products but slightly exceeded adjusted profit expectations.
• Microsoft Corp: CEO Satya Nadella’s compensation rose 63% to $79.1 million, aided by stock awards.
• NatWest Group PLC: Reported a 26% rise in profit and raised its 2024 income forecast due to increased lending and deposits.
• New York Community Bancorp Inc: Reported a net loss for Q3 as it increased reserves for potential loan losses.
• Principal Financial Group Inc: Reported a rise in adjusted profit driven by strong investment returns and higher premiums.
• ResMed Inc: Beat profit estimates, driven by strong demand for sleep apnea devices.
• Sanofi SA: Posted stronger-than-expected earnings growth, boosted by early vaccination sales.
• Strathcona Resources Ltd: Announced CEO Rob Morgan’s retirement and restructuring into four focused business units.
• Universal Health Services Inc: Reported Q3 profit in line with estimates, but increased expenses impacted overall performance.
• VeriSign Inc: Reported a 3.8% rise in revenue, driven by demand for domain name registrations.
• Western Digital Corp: Topped profit estimates on strong demand from cloud service providers, though quarterly revenue slightly missed expectations.
• Weyerhaeuser Co: Reported an 88% drop in Q3 profit due to low demand amid a weak housing market.
• WeRide Inc: Achieved a $4.21 billion valuation in its IPO, raising $120 million.
• Teck Resources Ltd: Canaccord Genuity cut target price to C$78 from C$80 after the miner downgraded its copper production forecasts.
• United Parcel Service Inc: Daiwa Capital Markets raised target price to $140 from $129 after solid Q3 earnings.