Market News & Analysis for November 11th, 2024

Global Markets

Canadian Markets

Canada’s main stock index, the TSX made moderate gains despite declines in the commodities sector, as both gold and oil prices dropped sharply. Investors continued to buy into other sectors, sustaining upward momentum on the index, with financials and technology stocks providing notable support.

American Markets

In the U.S., stock performance was mixed, driven by traders taking profits on recent gains in tech and energy. Bitcoin prices surged as renewed interest among institutional investors and favorable regulatory news fueled optimism. U.S. markets were also weighed by caution ahead of potential tariffs from former President Trump, who has suggested imposing new trade restrictions on various goods, adding further uncertainties to an already volatile market environment.

European Markets

European stocks rallied amid strength in the luxury and tech sectors, though gains were tempered by the weakening euro, which touched a 4.5-month low against the U.S. dollar. The drop in the euro largely reflected investor concerns over potential U.S. tariffs on European goods, which could significantly impact the eurozone economy, particularly the manufacturing sector.

UK stocks also moved higher, even though data showed UK businesses closed at a record pace as a result of the recent budget, which boosted the tax burden and levies for businesses.

Asian Markets

Japan’s Nikkei index inched higher, benefiting from gains in export-oriented sectors. However, the index’s advance was limited due to several large Japanese firms reporting lowered earnings projections, which dampened investor sentiment.

Chinese stocks declined, after Beijing announced a local government debt-relief initiative. The measure was expected to boost liquidity but was seen as inadequate by many investors who had hoped for broader economic support measures to offset the slowdown in China’s property and export sectors.

Corporate Stock News

Boeing Co & Spirit AeroSystems Holdings Inc: The two companies are nearing a funding agreement to provide Spirit AeroSystems with financial support, although it is not finalized yet. Airbus is also considering providing cash assistance due to concerns about potential disruptions to A350 deliveries. Spirit AeroSystems is exploring asset sales, including U.S. defense composites maker Fiber Materials.

Booking Holdings Inc: Booking Holdings is reviewing its organizational structure, which could lead to job cuts specifically at Booking.com. This restructuring comes after increased operating expenses and aims to modernize processes and optimize procurement.

Bumble Inc: JPMorgan raised its target price for Bumble to $8 from $7 due to improved Q3 performance.

Chevron Corp: Chevron is resuming operations on its Gulf of Mexico platforms after Hurricane Rafael. Separately, Chevron sold a 23% stake in an Egyptian exploration block to QatarEnergy and reported a slight decrease in production from its Tengizchevroil project in Kazakhstan.

Cousins Properties Inc: JPMorgan increased its target price to $35, citing high property quality.

CyberArk Software Ltd: JPMorgan raised CyberArk’s target price to $350, anticipating strong Q3 results after its acquisition of Venafi.

Enphase Energy Inc: Enphase announced a 17% workforce reduction as part of a restructuring plan in response to slowing demand. The company will incur restructuring charges and expects to complete these actions by Q1 2025, aiming to lower quarterly operating expenses by next year.

Hawaiian Electric Industries Inc: The company removed a warning about its ability to continue operating following a capital raise. Hawaiian Electric reported a net loss due to increased wildfire-related liabilities and missed analysts’ profit estimates.

Inter IKEA: Despite a revenue decline due to price cuts, Inter IKEA reported profit gains in 2024, primarily due to reduced interest expenses.

Marathon Petroleum Corp: JPMorgan increased Marathon’s target price to $176 following strong Q3 earnings.

NatWest Group Plc: NatWest bought back $1.29 billion in shares from the UK government, reducing government ownership from around 14% to 11%. This is part of an ongoing exit from state ownership that began after the 2008 bailout.

Procter & Gamble Co: Following reports from the Rainforest Action Network, Procter & Gamble and other consumer brands investigated claims that illegally sourced palm oil from a protected reserve in Indonesia entered their supply chains.

Shell Plc: A Dutch appeals court is set to decide on upholding a 2021 ruling that requires Shell to reduce carbon emissions by 45% by 2030. Shell argues that the ruling would lead to a shift in customers to other suppliers rather than reducing global emissions.

Stellantis NV: Stellantis and Leapmotor canceled plans for a second EV model at Stellantis’ Poland plant.

Taiwan Semiconductor Manufacturing Co (TSMC): The U.S. has ordered TSMC to halt shipments of advanced AI and GPU chips to Chinese customers. This follows a recent incident where one of TSMC’s chips was discovered in a Huawei AI processor.

Toyota Motor Corp: Toyota plans to increase its Chinese vehicle production capacity to 2.5 million annually by 2030 and could go up to 3 million. This strategic shift aims to regain market share lost to local manufacturers like BYD.

Tyson Foods Inc: Drought conditions in U.S. cattle regions are delaying herd expansion, impacting meatpackers like Tyson Foods, which faces higher cattle costs and a negative outlook for its beef business margins.

Universal Music Group (UMG): UMG stated that Pershing Square cannot compel it to become a U.S.-domiciled company or delist from Amsterdam.