Stock Market Analysis & News: Oct 3rd, 2024
Macro Market View
Canadian Markets
Despite a 4% increase in oil prices, Canada’s TSX dropped as recent data revealed a significant decline in house prices, with Toronto reporting a drop of over 4% in September. Additionally, factory orders in Canada slipped in August, contributing to the bearish sentiment in the market.
American Markets
In the U.S., stocks traded in a mixed fashion, as investors remained cautious ahead of critical economic data releases. The anticipation surrounding U.S. weekly jobless claims and the ISM services PMI (Purchasing Managers’ Index) data heightened market uncertainty. Concerns about a widening conflict in the Middle East further weighed on investor sentiment, has created a risk off environment for traders.
European Markets
European shares also faced downward pressure, largely influenced by a significant drop in shares of German technology giant SAP. Investors were closely analyzing critical inflation data emerging from the eurozone and its major economies, leading to increased caution in the market. As inflation remains a pressing issue, the impact on consumer spending and economic growth is a primary concern for investors. UK markets dropped as the pound also weakened. Service Sector companies showed signs of growth slowing.
Japanese Markets
Japan’s Nikkei index closed higher, supported by a weaker yen. This movement followed dovish remarks from Prime Minister Shigeru Ishiba, which effectively reduced expectations of further monetary tightening by the Bank of Japan. The combination of a weaker currency and supportive fiscal commentary bolstered market confidence, reflecting a more optimistic outlook for Japanese stocks.
Corporate Stock News
Alphabet Inc: The Adani Group announced plans to supply clean energy for Google’s operations in India, with a solar-wind hybrid project set to commence in Q3 2025. Additionally, the Philippines will impose a 12% VAT on digital services from tech giants, promoting fair competition against domestic providers.
Amazon.com Inc: The company plans to hire 250,000 workers for transportation and warehousing this holiday season, maintaining last year’s hiring level, as e-commerce demand is expected to rise.
Bank of New York Mellon Corp, Citigroup Inc & JPMorgan Chase & Co: A Russian court has frozen approximately $372 million in funds belonging to these U.S. banks, following claims of expropriation related to Ukrainian regulators.
Eli Lilly and Co: The FDA has removed Eli Lilly’s diabetes and weight-loss drugs from its shortage list, intensifying competition with cheaper alternatives.
Eni SPA: Ithaca Energy has completed a $993 million acquisition of Eni’s UK oil and gas assets, part of Eni’s strategy to streamline operations.
France, Greece, Italy, and Poland: These nations are set to vote on imposing tariffs of up to 45% on Chinese-made electric vehicles, which may trigger retaliation from Beijing.
Levi Strauss & Co: The company is considering selling its Dockers brand amid disappointing performance and will focus more on its Levi’s and Beyond Yoga brands.
Southwest Airlines Co: Director Rakesh Gangwal purchased over $100 million in stock and indicated that further top-level changes would be counterproductive amid activist investor pressures.
Stellantis NV: The automaker faces production cuts in Italy due to soft demand for electric vehicles, with output expected to drop below 500,000 this year.
Tesla Inc: Tesla is recalling over 27,000 Cybertrucks in the U.S. due to rear-view camera issues, while its most affordable Model 3 has been removed from orders.
Union Pacific Corp: The company reported that the Mexican railroad Ferromex has resumed permits for grain shuttle trains at the U.S.-Mexico border.
United Airlines Holdings Inc: The FAA concluded its safety review of United Airlines, finding no significant issues, thus lifting enhanced oversight measures.
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