Market News & Analysis: October 28th, 2024

Global Markets

Canadian Markets

Canada’s TSX rose nearly half a percent even though oil plunged 5 percent, while financial stocks helped pushed the market hogher. plunge in oil prices. The decline in oil came after Israel’s limited retaliatory strike against Iran, which notably did not disrupt energy supplies, alleviating immediate concerns about regional stability and its impact on the energy market.

American Markets

American stocks advanced across the board, benefiting from a general uptick in investor confidence. Technology stocks pushed the markets higher, as the market leader Nvidia, has stalled. Looking ahead, investors are keenly awaiting major corporate earnings reports from North American giants like Alphabet, Apple, and Microsoft.

European Markets

In Europe, shares started the week on a positive trajectory, with investors eager for upcoming key economic data releases. This week promises a packed schedule, which could further influence market movements across the continent. UK stocks also rose, while data shows consumers are getting back on spending.

Japanese Markets

Japanese stocks also saw gains as the yen fell to a three-month low. This drop was largely attributed to Prime Minister Shigeru Ishiba’s coalition losing its parliamentary majority in a significant electoral defeat, introducing uncertainty regarding future economic policy and overall market direction.

Corporate Stock News

Alphabet Inc

Alphabet’s Google is set to showcase a new artificial intelligence technology known as Project Jarvis. This innovation aims to enhance user experience by allowing the AI to take over web browser tasks, including research and shopping. The demonstration is expected to coincide with the release of its next flagship Gemini large language model in December. This development could further solidify Google’s position in the AI landscape, potentially reshaping how users interact with web browsers.

Alibaba Group Holdings Ltd

Alibaba announced a $433.5 million settlement to resolve a U.S. class-action lawsuit regarding allegations of monopolistic practices. The company denied any wrongdoing, asserting that the settlement was a strategic move to avoid prolonged litigation costs and disruptions. The proposed settlement awaits approval from U.S. District Judge George Daniels. Lawyers for the plaintiffs hailed the deal as exceptional, particularly given the potential damages that could have reached $11.63 billion.

Ameriprise Financial Inc

Jefferies raised its target price for Ameriprise Financial to $600 from $565, anticipating higher earnings per share in 2025. This optimism reflects a strong outlook on the company’s financial performance and market conditions.

Apple Inc & Masimo Corp

In a recent jury ruling, Apple successfully argued that earlier versions of Masimo’s smartwatches infringed on its design patents. However, the damages awarded were minimal at just $250, the statutory minimum for patent infringement. Apple’s main goal was to secure an injunction against the sales of Masimo’s smartwatches rather than financial compensation. The jury found that Masimo’s current models did not infringe Apple’s patents, a mixed outcome in the ongoing intellectual property dispute.

Boeing Co

Boeing initiated an offering of 90 million common shares and $5 billion in depositary shares as part of its strategy to bolster finances amid a prolonged strike by its workers. This capital infusion is critical for Boeing to maintain its investment-grade credit rating and recover from the disruptions in production, particularly of its 737 MAX aircraft, which has been a key revenue driver.

Century Communities Inc

JPMorgan raised its target price for Century Communities to $110 from $103.50 following an optimistic third-quarter earnings report, which included an upward revision of its 2024 revenue guidance. This adjustment reflects strong performance in the housing market.

CrowdStrike Holdings Inc & Delta Air Lines Inc

Delta Air Lines filed a lawsuit against CrowdStrike after a global software outage in July resulted in massive flight cancellations and financial losses exceeding $500 million. The lawsuit claims that a faulty software update from CrowdStrike caused significant disruptions by crashing over 8.5 million computers worldwide.

Eli Lilly & Co

Eli Lilly is preparing to introduce its weight-loss drug, Mounjaro, in Hong Kong by the end of the year. The drug, which has received government approval, will be marketed for both long-term weight management and type 2 diabetes management, expanding its reach in the Asian market.

Gildan Activewear Inc

Canaccord Genuity raised its target price for Gildan Activewear to $52 from $48, anticipating that the company will report third-quarter earnings aligned with analysts’ expectations. This adjustment signals confidence in Gildan’s operational performance.

McDonald’s Corp

McDonald’s has ruled out its beef patties as the source of an E. coli outbreak linked to its Quarter Pounder hamburgers. Following negative test results from multiple beef lots, the company plans to resume distribution of fresh Quarter Pounders across its restaurants within the week.

Newell Brands Inc

Canaccord Genuity lifted its target price for Newell Brands to $13 from $12, noting that the company’s third-quarter results met expectations and were supported by strong sales growth. This positive outlook reflects Newell’s operational resilience in a challenging retail environment.

Otis Worldwide Corp

Otis Worldwide is under investigation by Italy’s competition authority for alleged unfair commercial practices. The company is accused of installing devices on elevators that offer paid services without customer consent and for failing to meet installation deadlines and handle maintenance requests adequately.

Revolution Medicines Inc

Leerink Partners raised its target price for Revolution Medicines to $65 from $54, following encouraging initial efficacy data for its cancer drug. This positive feedback suggests a promising path forward for the company’s clinical developments.

Robinhood Markets Inc

Robinhood announced the introduction of U.S. presidential election event contracts, allowing users to trade based on predictions for the upcoming election between Vice President Kamala Harris and former President Donald Trump. This initiative reflects Robinhood’s strategy to engage retail traders in unique, speculative investment opportunities.

Taiwan Semiconductor Manufacturing Ltd

TSMC has suspended shipments to China-based chip designer Sophgo after a chip it produced was discovered in a Huawei AI processor. This situation highlights ongoing tensions related to U.S. national security regulations surrounding technology transfers to China.

Tesla Inc

Tesla received a favorable ruling from a U.S. appeals court, which overturned an NLRB order requiring CEO Elon Musk to delete a controversial tweet. The court’s decision emphasized the protection of free speech under the First Amendment, while also directing the NLRB to revisit its earlier findings regarding a pro-union employee’s firing.

Volkswagen

Volkswagen is reportedly considering a series of cost-cutting measures, including potential wage cuts and freezes, to save approximately 4 billion euros amid rising operational costs. This strategy underscores the challenges the automotive industry faces in adapting to economic pressures.