Market News & Analysis: November 8th, 2024

Global Markets

Canadian Markets

Canada’s main stock index fell as energy and mining sectors took a hit from declining crude oil and gold prices, which dampened market sentiment. Investors were also reacting to the latest Canadian jobs data: only 14,000 new jobs were created, missing the forecast of 25,000 and signaling a slowdown in the labor market that could impact economic growth. This data shift, paired with commodity price weaknesses, increased caution among Canadian investors.

American Markets

U.S. stock indexes rose slightly as investors adopted a cautious approach following recent market gains. The rally was driven by optimism around corporate earnings and potential macroeconomic improvements but faced resistance as traders balanced enthusiasm with prudence after a strong run-up.

Japanese Markets

Japan’s Nikkei index saw a notable weekly advance, marking its biggest gain since late September. This rise reflects investor optimism surrounding Japan’s economic resilience and corporate earnings, particularly in key sectors like technology and manufacturing.

Chinese Markets

Chinese stocks posted a modest decline as investors tempered their expectations for aggressive fiscal stimulus from Beijing. After a period of gains, profit-taking emerged ahead of anticipated announcements on economic support measures, leading to some short-term pullbacks despite as traders and investors fear a change in American economic policy and how it will impact Chinese stocks.

Corporate Stock News

• Airbnb Inc: Revenue narrowly beat estimates at $3.73 billion, up 10% YoY, but profits missed slightly. Marketing costs rose 27.5% to $514 million to expand in under-penetrated markets. Q4 revenue forecasted between $2.39 billion and $2.44 billion.
• Akamai Technologies Inc: Revenue forecast for Q4 fell short of estimates due to clients cutting back on cloud and content delivery spending. Q3 revenue rose 4% to $1.01 billion, with Q4 revenue expected at $995 million to $1.02 billion.
• Altus Group Ltd: CIBC cut its target price from C$53 to C$52 following lower-than-expected Q3 results.
• Arista Networks Inc: Projected Q4 revenue above expectations due to increased demand from data centers. Q3 profit rose to $2.33 per share, beating estimates.
• Axon Enterprise Inc: Increased its full-year revenue forecast after a 32% rise in Q3 revenue, led by demand for body cameras and drones. Adjusted profit of $1.45 per share exceeded estimates.
• Block Inc: Missed Q3 revenue expectations at $5.98 billion due to softer consumer spending. Also disclosed a regulatory draft consent order related to its Cash App.
• Bombardier Inc: CIBC cut target price from C$134 to C$131 after the company reported a Q3 cash burn of $127 million.
• Cloudflare Inc: Forecasted Q4 revenue below estimates as clients cut back due to high inflation. Raised its 2024 revenue guidance slightly.
• Consolidated Edison Inc: Beat Q3 profit estimates due to higher service rates. Increased full-year profit forecast range to $5.30–$5.40 per share.
• Corpay Inc: Q3 adjusted profit rose 6% driven by growth in corporate payments. Anticipates 9-11% organic revenue growth in 2025.
• DXC Technology Co: Expects current-quarter revenue and profit above estimates amid strong cloud services demand.
• EOG Resources Inc: Increased share repurchase program after Q3 profit beat expectations due to higher production. Raised its regular dividend by 7%.
• Fortinet Inc: Shares fell after Q4 revenue forecast was only in line with estimates. Fiscal year 2024 revenue guidance rose slightly.
• Grifols: On track to meet 2024 targets despite a 7.5% drop in Q3 net profit.
• Insulet Corp: Raised its annual revenue growth forecast due to strong demand for Omnipod insulin pumps. Q3 revenue exceeded estimates at $543.9 million.
• Leonardo (Italy): CEO aligned with U.S. defense spending push, supporting cross-border alliances in the sector.
• Lucid Group Inc: Beat Q3 revenue estimates and reaffirmed annual production target, though it reported negative gross margins and a widened net loss.
• Rio Tinto: U.S. judge dismissed some claims in a lawsuit alleging investor fraud related to the Oyu Tolgoi mine in Mongolia.
• Mettler-Toledo International Inc: Beat Q3 profit estimates with $954.54 million revenue, raised lower-end profit forecast, but noted uncertainty in market conditions.
• Monster Beverage Corp: Missed Q3 sales and profit estimates as cost-conscious consumers sought cheaper alternatives. Margins slightly improved due to price hikes and reduced input costs.
• Motorola Solutions Inc: Raised full-year revenue and profit forecasts with robust demand for its security products. Q3 revenue reached $2.79 billion, beating expectations.
• MP Materials Corp: Reported a smaller-than-expected loss with higher production and sales volumes. A 23% decline in concentrate prices impacted revenue.
• News Corp: Exceeded Q1 revenue and profit expectations due to growth in digital real estate, publishing, and Dow Jones segments. Announced a new finance chief for next year.
• Nvidia Corp: Reached a historic valuation of $3.65 trillion, driven by investor optimism on Trump’s election and anticipated revenue growth of 80% for Q4.
• Paramount Global: Missed Q3 revenue estimates as box office and cable declines offset streaming growth. Paramount+ added 3.5 million subscribers, surpassing expectations.
• Pinterest Inc: Disappointed investors with a Q4 revenue forecast aligned with expectations. Announced a new $2 billion stock buyback program.
• Rivian Automotive Inc: On track for gross profit in Q4, with increased green car credit sales aiding finances despite production challenges and lowered annual vehicle targets.
• Serve Robotics: Acquired Vebu, expanding into restaurant technology with the avocado processing robot “Autocado” used by Chipotle.
• Solventum Corp: Raised annual profit forecast, driven by strong demand for wound care and sterilization products, despite a significant drop in Q3 net income.
• Trade Desk Inc: Projected Q4 revenue above estimates, benefiting from demand in connected TV and retail media markets, with Q3 revenue up 27% year-over-year.
• Walmart Inc: Offering new incentives to delivery drivers for holiday season pickups to boost sales among upper-income shoppers, aiming to improve e-commerce profitability.