Market Analysis & Stock News: Sept 11th, 2024

Global Markets

Canadian Markets: The TSX remained relatively flat today, showing little change. This stability came as oil prices experienced a slight rebound from losses incurred in previous sessions. The flat performance reflects a balance between varying sector performances and broader economic indicators.

U.S. Markets: U.S. stocks saw a decline as investors processed the latest Consumer Price Index (CPI) report. The CPI, a key measure of inflation, increased by 2.5% year-over-year. This uptick in inflation raised concerns among investors about the scale of potential future interest rate hikes by the Federal Reserve, contributing to the stock market’s downturn.

European Markets: European equities were mixed, as strong performances were seen in technology and material sectors. The positive momentum in these sectors helped offset broader economic uncertainties. UK Markets were in the red, as the pound rose against the US dollar.

Asian Markets:

• Japanese Markets: The Nikkei index fell for the seventh consecutive session, reflecting ongoing investor concerns and market volatility. This extended losing streak indicates persistent negative sentiment in the Japanese stock market.
• Chinese Markets: Chinese equities also dipped, primarily due to declines in energy shares. This sector-specific weakness contributed to broader losses across Chinese indices, reflecting ongoing challenges in the energy sector and its impact on the overall market.

Currency Movements:

• U.S. Dollar: The dollar fell to its lowest level against the Japanese yen this year. This decline follows a period of strength and is part of a broader trend of weakening currency as investors recalibrate their expectations based on recent economic data.
• Dollar Index: The dollar index, which measures the greenback against a basket of other major currencies, slipped after reaching a one-week high on Tuesday. This retreat indicates a shift in investor sentiment and adjustments following recent highs.

Commodities:

• Oil Prices: Oil prices climbed as a reduction in U.S. crude inventories helped counterbalance concerns about weak global demand. The inventory drawdown suggests tightening supply conditions, which has buoyed oil prices despite ongoing worries about the broader demand outlook.
• Gold Prices: Gold prices edged up, reflecting a safe-haven demand amid economic uncertainties and market volatility. The slight increase in gold prices aligns with its traditional role as a hedge against inflation and economic instability.

Corporate News

Amazon.com Inc: AWS plans to invest $10.45 billion in UK data centers over the next five years, aiming to boost the UK’s GDP by £14 billion and support 14,000 jobs.

Banco Santander SA: Sold 5.3 million shares of Santander Bank Polska for approximately 2.46 billion zlotys, reducing its stake to 62.2% while maintaining support for the bank’s strategy.

Bill.com Holdings Inc: Reported stronger-than-expected fiscal Q4 earnings, with revenue of $126.7 million and a net loss of $28.7 million, reflecting continued growth in its digital payment platform.

BridgeBio Pharma Inc: Halted development of its gene therapy BBP-631 for congenital adrenal hyperplasia due to underwhelming early-stage trial results, and will seek partnerships for future treatments.

Cemex SAD de CV: Sold its Guatemalan operations to Holcim Group for around $200 million, with plans to reinvest the proceeds in developed markets.

Canadian National Railway (CN) Co: Lowered its 2024 profit forecast due to labor stoppages and wildfires, now expecting low single-digit EPS growth and a reduced return on invested capital.

Capri Holdings Ltd & Tapestry Inc: Tapestry testified that a merger with Capri could allow price increases on Michael Kors products, but noted other factors in pricing decisions, as regulators scrutinize the $8.5 billion deal.

Citigroup Inc: Chief accounting officer Johnbull Okpara resigned; Robert Walsh will be interim chief accounting officer and Patrick Scally interim controller during the transition.

Dollarama Inc: Reported a rise in Q2 sales and gross margin as inflation-driven shoppers sought bargains, with net sales increasing by 7.4% to C$1.56 billion.

Ford Motor Co: In talks with Tamil Nadu, India, to explore vehicle production for export and potentially renew its three-decade partnership in the region.

GameStop Corp: Filed to offer up to 20 million shares, causing its stock to drop; reported Q2 revenue of $798.3 million, missing analyst expectations, but showed an improved net income.

Goldman Sachs Group Inc: Nearing a deal to transfer its GM credit card business to Barclays; also appointed new co-heads of M&A for Asia Pacific.

GSK plc: Experimental herpes vaccine failed to meet goals in mid-stage trials; will not advance to late-stage trials but will continue for safety monitoring.

HSBC Holdings PLC: Launched a strategic review of its Malta business, potentially leading to its sale, as the bank focuses on expanding in Asia.

Nikola Corp: Founder Trevor Milton ordered to pay $167.7 million for misleading statements; this includes covering Nikola’s fine from a SEC fraud case and legal fees.

Novo Nordisk A/S: Experimental weight-loss pill amycretin showed safety and tolerability in early-stage trials, with mild-to-moderate side effects and a 13.1% weight loss.

NXP Semiconductors NV: Announced plans to invest over $1 billion in India to double its R&D efforts and collaborate with local industries.

Rentokil Initial PLC: Warned of lower annual profit due to weaker sales in North America; expects a full-year adjusted pretax profit of about 700 million pounds.

United States Antimony Corp: Plans to increase its antimony supply to boost smelting capacity, working with 12 countries to address current supply shortages.

Visa Inc: Aims to increase digital payment acceptance in Pakistan tenfold over the next three years through a partnership with 1Link, enhancing digital transactions.

Walgreens Boots Alliance Inc: Settled opioid claims with Baltimore for approximately $80 million, part of a broader $402.5 million settlement with the city.