Market Analysis & News: Oct 11th, 2024

Global Markets

Canadian Markets

Canada’s main stock index trended higher with the release of the crucial domestic employment data. The latest figures revealed a decline in the unemployment rate to 6.5 percent, accompanied by the creation of 47,000 jobs in September—significantly surpassing the anticipated 27,000 jobs. This positive employment news contributed to investor optimism and buoyed market sentiment.

American Markets

Wall Street started the day on a weaker note but quickly regained momentum, bolstered by strong earnings results from JPMorgan Chase as the third-quarter earnings season officially commenced. This shift in sentiment followed the release of hotter-than-expected inflation data for September, which has heightened expectations for a potential 25-basis-point interest rate cut by the Federal Reserve in November, instead of a deeper cut.

Chinese Markets

Chinese shares declined as investors adopted a more cautious stance, awaiting further updates regarding the country’s stimulus plans. The uncertainty surrounding government measures to support the economy has left many investors on edge, leading to a pullback in Chinese equities.

Japanese Markets

Japan’s main index, the Nikkei rose over half a percent of Friday as the yen fell. The new Prime Minister says Japan is aiming for a growth-oriented economy, and is looking to attract digital nomads.

European Markets

European shares were in the green, pushed higher by positive corporate earnings and positive sentiment on the upcoming  interest rate decision by the European Central Bank.  Energy stocks led the EU zone higher.

UK stocks also rose, as traders look to positive bank earnings.  Data showed the UK economy grew by 0.2% in August, rebounding after two months of stagnant growth. This expansion was fueled by increases in the services, manufacturing, and construction sectors, aligning with analyst expectations. The data was reported by the Office for National Statistics (ONS).

Corporate Stock News

AutoNation Inc: Closed 38 sites in Florida due to damage from Hurricane Milton, assessing repairs.

Bank of America Corp & Berkshire Hathaway Inc: Berkshire Hathaway sold 9.5 million shares of Bank of America, reducing its stake below 10%.

Bank of New York Mellon Corp: Profit rose 16% in Q3, benefiting from higher investment services fees and strong market performance. Net interest income increased by 3%.

BlackRock Inc: Assets under management reached a record high of $11.48 trillion, supported by strong inflows and market performance. Net income rose to $1.63 billion.

BP Plc: The company expects a hit of up to $600 million to its Q3 profit due to weak refining margins and lower oil trading results.

Boeing Co: Filed an unfair labor practice charge amid a strike by 33,000 workers, accusing union leaders of bad faith bargaining.

CAMP4 Therapeutics Corp: Raised $75 million in its U.S. IPO, pricing shares at $11, with plans to develop its product candidates.

CeriBell Inc: Upsized its IPO to raise $180 million, pricing shares at $17 each for an AI-powered brain monitoring system.

Chipotle Mexican Grill Inc: Target price raised to $59 from $56 ahead of Q3 results, reflecting investor confidence in management.

Denali Therapeutics Inc: Partner Sanofi discontinued a mid-stage study of a drug for multiple sclerosis due to unmet study goals.

Diamondback Energy Inc: Signaled lower Q3 oil and gas prices, reporting realized prices of $72.32 per barrel for oil.

Domino’s Pizza Inc: Target price cut to $422 from $429 amid macroeconomic challenges.

JPMorgan Chase & Co: Q3 profit dropped as provisions for loan defaults increased, despite growth in net interest income and investment banking revenue.

Johnson & Johnson: A bankruptcy court allows the company to pursue a new attempt to resolve talc product lawsuits.

Northvolt: Seeking to sell battery-making materials to strengthen finances amid reduced ambitions.

Novo Nordisk A/S: Expanding operations in India, increasing leadership roles, and partnering with local AI start-ups.

Nurix Therapeutics Inc: Jefferies initiated coverage with a buy rating and target price of $41 based on promising early-stage data.

Sanofi: Nearing a deal to sell its consumer health unit for around 15 billion euros to a U.S. private equity firm.

Stellantis NV: Shares declined as CEO Carlos Tavares confirmed retirement plans for 2026 amid management changes.

TD Bank: Plans a significant restructuring following a $3 billion U.S. penalty for money laundering violations.

Tesla Inc: CEO Elon Musk unveiled a robotaxi and a robovan, signaling a shift towards autonomous vehicle production.

Toronto-Dominion Bank: Plans to restructure after pleading guilty to money laundering violations and agreeing to pay $3 billion in penalties.

Upstream Bio Inc: Raised $255 million in its IPO, pricing shares at $17 each for developing treatments for respiratory disorders.

Wells Fargo & Co: Q3 profit fell due to subdued loan demand and increased deposit payments.

Zoetis Inc: JPMorgan raised the target price to $230 from $225, citing sustained growth potential.