Market Analysis & Top Stock News: Aug 28, 2024

Global Market Analysis

Canada

• Toronto Stock Exchange (TSX): The TSX dropped as investors were cautious on upcoming economic data releases, waiting for clearer future direction.
• Bank Stocks: Despite the broader market’s hesitation, bank stocks on the TSX saw gains, buoyed by positive earnings reports. Canadian banks have reported strong financial results, which have helped drive their share prices higher.

USA

• Stock Indices: U.S. stock indices were mostly in negative territory. The market’s focus was on Nvidia’s upcoming quarterly earnings report. Investors are keen to see whether Nvidia’s performance can sustain the current market rally and whether it will influence broader risk-taking.

Europe/UK

• European Shares: European stocks hit a more-than-one-month high, driven by strong performances in the technology sector. Gains in tech stocks helped propel broader European indices upward, reflecting positive investor sentiment in the region. UK markets were flat, and the pound dropped against the US dollar.

Japan

• Nikkei Index: Japan’s Nikkei index saw a slight decrease. The decline was attributed to a stronger yen, which can impact the profitability of Japanese exporters by making their goods more expensive for foreign buyers.

Commodities

• Gold Prices: Gold prices declined due to the steadiness of the U.S. dollar. The metal typically moves inversely with the dollar, and stability in the dollar often pressures gold prices lower.
• Oil Prices: Oil prices fell, driven by concerns about Chinese demand and fears of a broader economic slowdown. These factors are contributing to market apprehension about future oil consumption and potential oversupply issues.

Corporate Stock News

• Apple Inc: Apple has cut about 100 jobs in its digital services group, impacting roles related to Apple Books and Apple News. The total number of employees at Apple was approximately 161,000 as of September 30, 2023.
• Capital One Financial Corp & Discover Financial Services: These companies are defending their proposed $35 billion merger in court against a consumer lawsuit claiming it will reduce competition and increase prices. A hearing is scheduled for October 16.
• Delaware’s Highest Court: The court will hear an appeal by GSK and other drugmakers regarding lawsuits claiming that the discontinued heartburn drug Zantac caused cancer.
• Eni SPA: The Italian energy firm’s nearly $12 billion Geng North gas project in Indonesia is expected to start production in late 2027. This project is part of the Indonesia Deepwater Development (IDD) project.
• Equinor ASA: The Norwegian energy firm may reconsider investing in the UK oil and gas sector if changes to the tax regime are implemented by the Labour government.
• General Motors Co: GM and Samsung SDI have agreed to invest $3.5 billion in a joint EV battery factory in Indiana, aiming for mass production in 2027 with a planned annual capacity increase to 36 GWh.
• Kohl’s Corp: Kohl’s raised its annual profit forecast to $1.75 to $2.25 per share but lowered its annual net sales target, now expecting a decline between 4% and 6%.
• Mattel Inc: Mattel has partnered with HMD Global to launch the HMD Barbie Phone, a feature phone with a retro design, priced at $131.24.
• National Bank of Canada: The bank reported a 55% increase in net income from its financial markets unit and an adjusted profit rise to C$960 million, reflecting strong performance despite rival Bank of Montreal’s profit drop.
• Nordstrom Inc: Nordstrom posted a second-quarter profit that exceeded estimates, with revenue rising to $3.89 billion. The company also improved its annual comparable sales growth forecast.
• Polestar Automotive Holding UK Plc: Polestar will replace CEO Thomas Ingenlath with Michael Lohscheller as it navigates a challenging period for the electric vehicle sector.
• Prudential: Prudential’s first-half operating profit rose by 9%, driven by a rebound in new sales in Hong Kong following COVID restrictions.
• Royal Bank of Canada: RBC reported increased third-quarter profit due to the HSBC Canada acquisition and strong capital markets performance, with adjusted net income rising to C$4.73 billion.
• SentinelOne Inc: SentinelOne raised its annual revenue forecast to $815 million and reported a 33% increase in quarterly revenue, with its adjusted profit per share reaching 1 cent for the first time.
• Scandinavian Airlines (SAS): SAS has completed its Chapter 11 restructuring and emerged from bankruptcy proceedings in the U.S.
• Vale SA: Vale announced a new CEO to address market speculation, with the appointment aimed at reducing uncertainty about potential candidates.
• Walmart Inc: Walmart will offer marketplace sellers services for transporting goods from Asia to U.S. warehouses and will provide cash advances and waived peak-season storage fees. The company also won an appeal upholding a $300,000 award for a fired employee with Down syndrome.
• Walt Disney Co: Disney’s merger with Reliance Industries’ Indian media assets has been approved by India’s competition regulator, with some voluntary modifications.