Stock Market Analysis & Top Stock News: Sept 20th, 2024

Global Markets

Canadian Markets

Canada’s TSX declined after yesterday’s fed induced rally, even though  oil and gold prices rose. Investors and traders are closely monitoring upcoming remarks from Bank of Canada Governor, Tiff Macklem on Sept 24th. His speech is highly anticipated for insights into the central bank’s monetary policy direction, especially as inflationary pressures remain a concern.

European Markets

European stock markets took a risk off response, and dropped deep into te red on Friday.  The decline was led by shares of major automakers after Mercedes announced a cut to its profit outlook, signaling potential challenges ahead for the industry. This news weighed heavily on investor sentiment, contributing to a broader market slump. UK markets also dropped as pound sterling strengthened against the euro, bolstered by better-than-expected retail sales data from the UK.

Japanese Markets

Japanese markets jumped on Friday, achieving its best weekly performance since mid-August. This gain was largely influenced by a weaker yen, which prompted investors to embrace equities as the Bank of Japan maintained its current interest rates and indicated a careful approach to future policy tightening. The central bank’s stance suggests a commitment to supporting economic growth while monitoring inflation trends.

Chinese Markets

Chinese stocks registered their first weekly gain in a month, buoyed by expectations of forthcoming economic stimulus measures. This optimism comes despite the People’s Bank of China (PBOC) deciding to keep its benchmark rates unchanged, highlighting a cautious yet proactive approach to stabilizing the economy.

Corporate Stock News

Chevron Corp: The company stated it will not invest in U.S. LNG plant construction, considering it an inefficient use of capital, as it can sell U.S. gas directly.

FedEx Corp: The parcel service reported a significant quarterly profit drop and lowered its revenue forecast for fiscal 2025. Shares fell 13% in premarket trading due to weak demand for priority services.

General Motors Co: GM is recalling 449,671 vehicles in the U.S. due to a malfunctioning low brake fluid warning in several models.

GE Vernova Inc: The company plans to reduce its offshore wind business, potentially cutting 900 jobs globally, in response to industry challenges.

Hershey Co: The chocolate maker laid off a small number of employees as part of ongoing organizational changes prompted by high cocoa prices.

JPMorgan Chase & Co: The bank announced leadership changes to enhance its healthcare and technology investment banking sectors.

Lennar Corp: The homebuilder reported third-quarter profits that exceeded expectations due to strong demand amid a low housing supply and declining mortgage rates.

Masimo Corp: Shareholders elected two candidates proposed by activist investor Quentin Koffey, resulting in the ousting of CEO Joe Kiani from the board.

Mercedes-Benz: The company cut its full-year profit margin forecast for the second time in two months due to declining sales in China.

Macy Inc: The department store plans to hire over 31,500 seasonal employees, a decrease from previous years.

Nike Inc: Former executive Elliott Hill will return to lead the company as president and CEO, focusing on improving retailer relations.

Novo Nordisk A/S: The European Medicines Agency has endorsed the use of Wegovy for treating heart failure in obese patients.

Nvidia Corp: UAE-based G42 is collaborating with Nvidia on climate technology as the UAE invests heavily in AI.

United States Steel Corp: Nippon Steel plans to sell at least $211 million in assets while awaiting approval for its $14.9 billion bid for U.S. Steel.

Viavi Solutions Inc: The company is considering another bid for Spirent Communications if a rival takeover fails, pending regulatory approval.

Walt Disney Co: The FCC chair rejected Donald Trump’s call to revoke ABC’s licenses over debate coverage issues. Disney also appointed Jared Bush as the new chief creative officer for its animation studio.

Warner Music Group Corp: The company announced layoffs affecting about 150 employees, part of a restructuring plan aimed at saving $260 million.

West Fraser Timber Co Ltd: The forestry producer will indefinitely curtail its Lake Butler, Florida, sawmill, impacting nearly 130 employees due to high fiber costs and a soft lumber market.