Market Analysis & News: Friday October 18th, 2024

Global Markets

Canadian Markets

Canada’s main stock index, the TSX rose as gold traded higher lifting gold stocks and base miners. Investors are keenly anticipating the Bank of Canada’s upcoming monetary policy decision next week, adding a layer of caution to market dynamics.

American Markets

US stock markets also showed strength, particularly the Nasdaq, which saw substantial gains thanks to a broad rally in technology shares. Notably, Netflix’s impressive quarterly results contributed to this momentum, reflecting investor confidence in tech stocks amid a volatile economic landscape, and valuation weary traders.

European Markets

Europe’s main indices advanced following a rate cut by the European Central Bank (ECB) and a series of positive corporate earnings reports. This combination has positioned the index for a second consecutive week of gains, indicating a rebound in investor sentiment.

Chinese Markets

Chinese stocks surged, benefiting from the central bank’s introduction of new funding schemes aimed at bolstering the economy. However, mixed economic data continues to exert pressure on policymakers, prompting calls for additional stimulus measures to sustain growth.

Japanese Markets

Japan’s Nikkei share average ended the day higher, although it trimmed some of its early gains as investors decided to lock in profits, a common strategy in fluctuating markets.

Corporate Stock News

• American Express Co: Reported a 2% rise in profit to $2.51 billion, with earnings of $3.49 per share beating estimates of $3.28. Revenue rose 8% to $16.64 billion, despite $1.4 billion in credit loss provisions, up from $1.2 billion last year.
• Amazon.com Inc: Top executive defended the new in-office policy requiring five days a week, stating that workers who disagree can leave. Support for the policy is reportedly high among employees.
• Apple Inc: Sales of new iPhones in China rose 20% in the first three weeks post-launch compared to the 2023 model, although overall iPhone sales dropped 2% year-on-year due to competition.
• Archer-Daniels-Midland Co: Facing a lawsuit for safety system failures linked to an explosion that injured a worker. The lawsuit claims intentional neglect in maintaining safety protocols contributed to the incident.
• ASML Holding NV: Samsung postponed deliveries of chipmaking equipment for its Texas factory due to a lack of major customers, affecting shipments of advanced equipment.
• Autoliv Inc: Reported a third-quarter adjusted operating profit of $237 million, slightly below the previous year’s $243 million but in line with analyst expectations.
• BP: Considering selling a minority stake in its offshore wind business as part of a strategy to refocus on core energy operations.
• Coca-Cola Co & PepsiCo Inc: Bottlers in the West Bank are facing shortages of cans and sugar due to a prolonged border closure, affecting production capabilities.
• CVS Health Corp: David Joyner named new CEO, succeeding Karen Lynch amid organizational changes.
• Energy Transfer LP: Signed a preliminary contract to build a proposed LNG plant in Louisiana, pending final investment decisions.
• Intuitive Surgical Inc: Earnings of $1.84 per share exceeded estimates of $1.63, with a notable increase in da Vinci surgical procedures.
• Microsoft Corp: Target price cut to $470 from $485 amid expectations of mixed earnings results.
• Netflix Inc: Surged in subscribers by 5.1 million, with earnings of $5.40 per share, surpassing estimates of $5.12. The ad-supported service gained significant traction.
• Nebius Group NV: Shares to resume trading on Nasdaq after being halted due to geopolitical issues, marking a significant moment for the AI infrastructure firm.
• New York Community Bancorp Inc: Plans to lay off approximately 1,900 employees as part of a business turnaround strategy.
• Philip Morris International Inc: Agreed to pay C$32.5 billion to settle a long-running tobacco lawsuit in Canada, with the distribution of the settlement amount still pending.
• Procter & Gamble Co: Missed sales expectations for Q1, reporting net sales of $21.74 billion, below analyst forecasts.
• SLB: Beat profit estimates, posting a quarterly profit of 89 cents per share, attributed to strong demand for drilling equipment.
• Taiwan Semiconductor Manufacturing Company Ltd: Shares hit a record high after strong earnings and a positive outlook for AI demand, though facing scrutiny over potential ties to Huawei.
• Tesla Inc: Under investigation by the U.S. auto safety regulator following reports of collisions involving its Full Self-Driving technology.
• Volkswagen: Unions and management engaged in controversial negotiations amid concerns over the company’s future strategy.