Stock Market Analysis & News: Sept 30th, 2024
Macro Market View
Canadian Markets
Canada’s TSX dropped as mining share slipped as gold dropped a half of a percent. Canadian investors remain cautious ahead of anticipated comments from Federal Reserve Chair Jerome Powell. His insights could significantly influence market sentiment and expectations regarding interest rates which could influence Canada’s economy and the Bank of Canada’s monetary policy..
American Markets
American. stocks dipped slightly, as traders and investors move to the sidelines as they brace for this week’s reports. Data is set to be released to show a critical jobs reports and statements from policymakers, creating uncertainty about economic direction. Investors are closely watching these developments as they could signal shifts in monetary policy.
European Markets
European shares dropped as investors there also prepared for a busy week of economic data from the region. ECB President Christine Lagarde’s comments are particularly anticipated, as they may provide clues about the European Central Bank’s future actions regarding interest rates and economic support. Economic indicators, including inflation and employment data, are also in focus as they will help shape market expectations.
UK Markets dropped as new data revealed the UK economy expanded less than expected in Q2. The pound rose against the US dollar, which pressured the markets, and also the mining sector also was under duress.
Japanese Markets
Japan’s Nikkei dropped almost 5 percent which was mainly due to the strengthening of the yen. Investors were also concerned by the election of Shigeru Ishiba, who is viewed as a monetary policy hawk, to the position of Prime Minister. Investors are concerned that Ishiba’s leadership could lead to tighter monetary policies, which typically strengthen the yen but may hinder export competitiveness.
Chinese Markets
Chinese stocks surged 8 percent, which was fueled by investor response to a new set of stimulus measures announced by Beijing aimed at revitalizing the economy. The optimism surrounding these measures has prompted many investors to re-enter the market.
Corporate Stock News
Alphabet Inc: Dagang NeXchange Berhad (DNeX) and Google Cloud announced a multi-year deal for sovereign cloud services in Malaysia. Epic Games accused Google and Samsung of conspiracy to protect Google’s Play store.
Amazon.com Inc: Amazon Web Services was ordered to pay $30.5 million for violating patent rights, with potential for damages to be tripled.
Apple Inc: The company exited negotiations for a $6.5 billion OpenAI funding round. Production at a Tata Electronics plant for iPhone components remains suspended due to a fire.
AT&T Inc & TPG Inc: AT&T is selling its 70% stake in DirecTV to TPG for $7.6 billion, receiving initial payments starting in 2025.
Boeing Co: Pay deal talks with the International Association of Machinists broke off with no further dates set. A court hearing on objections related to Boeing’s guilty plea for fraud is scheduled for October 11.
Brookfield Corp: The firm is interested in acquiring Spanish drugmaker Grifols and has requested more time for due diligence.
Cloudflare Inc: The company denied hosting websites linked to a hacker selling stolen personal data from an Indian insurer.
CVS Health Corp: Glenview Capital Management will meet with CVS executives to discuss operational improvements.
Exxon Mobil Corp: Board member Gregory Goff joined a newly formed company seeking to acquire Citgo Petroleum.
First Solar Inc: New tariffs may be imposed on solar panels from Southeast Asia due to unfair subsidies, as part of a trade case.
GE HealthCare Technologies Inc: The FDA approved a new diagnostic drug for detecting coronary artery disease, expected to be available in early 2025.
Nike Inc: Analysts expect Nike to lower annual forecasts in its upcoming quarterly results, with a significant drop in revenue anticipated.
Southern Co: Storm Helene caused major power plant operations to shut down or slow, affecting multiple facilities.
Spotify Technology SA: The platform experienced a three-hour outage affecting over 40,000 users.
Stellantis NV: The automaker slashed annual forecasts and faced a potential strike authorized by the UAW, citing contract breaches.
Toronto-Dominion Bank: The lender is nearing a guilty plea related to failing to prevent money laundering linked to Chinese crime groups.
TPG Inc: TPG is reportedly in talks to acquire a $2 billion minority stake in Creative Planning, reflecting strong demand in the wealth management sector.
UBS Group AG: Chair Colm Kelleher expressed concerns that stricter capital requirements proposed by the Swiss government could harm the country’s financial standing.
Verizon Communications Inc: The company is in advanced talks to sell thousands of mobile phone towers to Vertical Bridge for approximately $3.3 billion.
Walmart Inc: Online sellers on Flipkart have sued the Indian antitrust watchdog over an investigation that they claim violated due process.
Thyssenkrupp: The head of the steel division warned of significant layoffs for 27,000 workers due to necessary cuts.
Analyst Ratings News:
Advantage Oil (AAV): National Bank Financial lowers the target price, maintaining a Sell rating with a new target of CAD 11.5.
Amazon (AMZN): Truist Financial maintains a Buy rating, raising the target from USD 230 to USD 265.
Autodesk (ADSK): Morgan Stanley & Co. reiterates an Overweight rating with a target price of USD 320.
Baytex (BTE:CA): National Bank Financial lowers the target price, maintaining a Sell rating with a new target of CAD 7.50.
BCE Inc. (BCE:CA): TD Securities and CIBC World Markets both maintain a Sector Perform rating, and both have a target price of CAD 53.
Home Depot (HD): Piper Jaffray Companies maintains an Overweight rating, increasing the target from USD 387 to USD 455.
Robinhood (HOOD): Deutsche Bank raises the target price to USD 27 from USD 24, and maintains the Buy rating.
Royal Gold (RGLD): TD Securities maintains a Buy rating with a target price of USD 169.
