Market Analysis for March 5th, 2025

Global Market Update

Canadian Markets

Canada’s TSX traded Wednesday moderately in the green, which was on the back of news that emerged late Tuesday that Commerce Secretary Howard Lutnick hinted that President Trump was considering relieving some of the stringent tariffs imposed on Canadian and Mexican imports. This potential tariff relief was centered on goods that comply with the U.S.-Mexico-Canada Agreement (USMCA), including key items such as cars and auto parts. The announcement spurred optimism in the markets, as it was viewed as a step toward easing trade tensions between the U.S., Canada, and Mexico, which has been a point of concern for many businesses and investors in North America.

American Markets

U.S. stock indexes traded mostly downward, as uncertainty still spooked investors,  as sentiment had been under pressure from concerns about the global economic outlook.  New orders for U.S.-manufactured goods rose in January. US factory orders also increased 1.7%,  up from an estimated 1.6%. More job cuts were announced at Disney, where 200 workers were being let go across its ABC and entertainment TV networks. US investment banks are warning that financial markets are flashing recession indicators.

European Markets

European markets jumped lead by strong gains in German stocks, as news was released that the country’s leaders had agreed to establish a significant 500 billion euro infrastructure fund. This fund would be used to revamp Germany’s infrastructure, with a focus on boosting defense spending and revitalizing the nation’s economic growth. The deal also involved changes to Germany’s borrowing rules, which would allow for greater fiscal flexibility in funding the infrastructure projects. The announcement was seen as a positive signal for both the German economy and the broader European Union, as it indicated that key European leaders were willing to take bold steps to boost growth and investment. Swiss inflation just came in at a 4 year low, showing more signs of stabilizing prices in Europe.

UK markets were slightly negative as the Bank of England warned of  “substantial” risks to the UK economy from American tariffs.  The pound rose in trading against the USD, which was at a almost 4 month high for the currency.

Corporate Stock News

Ally Financial Inc: Ally Financial sold $2.8 billion in low-yielding investment securities as part of a repositioning strategy aimed at increasing its interest income. The bank expects this restructuring to result in a pre-tax loss of about $250 million in Q1 2025.

Alphabet Inc: Google met with President Donald Trump’s government to urge them to reconsider plans to break up the search engine company. Google expressed concerns that the proposals would harm the U.S. economy and national security.

Ansys Inc & Synopsys Inc: Synopsys’ $35 billion deal to acquire Ansys was cleared by Britain’s competition regulator after accepting certain remedies from the companies, allowing the merger to proceed.

Apple Inc: Apple has appealed a British government order to create a “back door” in its secure cloud storage systems, following pressure for greater access from law enforcement.

Arthur J. Gallagher & Co: Arthur J. Gallagher announced its $1.2 billion acquisition of rival Woodruff Sawyer to expand its insurance offerings, particularly in management liability, construction, real estate, and cyber, with a focus on the West Coast.

BlackRock Inc: BlackRock agreed to buy a majority stake in the company that operates ports along the Panama Canal in a $22.8 billion deal, marking its largest infrastructure investment to date.

BP Plc: Saudi Aramco is considering an offer to acquire BP’s Castrol lubricants business, valued at $6-$8 billion, as part of BP’s $20 billion divestment program through 2027.

CrowdStrike Holdings Inc: CrowdStrike forecasted slightly below-estimate first-quarter revenue due to weak spending on cybersecurity products. It expects revenue for Q1 between $1.10 billion and $1.11 billion.

Dollar Tree Inc: Dollar Tree appointed Stewart Glendinning as its new CFO, effective March 30, following the resignation of Jeff Davis. Glendinning previously served as CEO of Express and held global CFO roles at Tyson Foods and Molson Coors.

Deutsche Bank: The German financial watchdog, Bafin, fined Deutsche Bank €23.05 million over breaches related to the sale of derivatives in Spain and two other issues at its Postbank business.

Evolus Inc: Evolus posted a Q4 profit driven by strong demand for its wrinkle treatment Jeuveau. The company expects its two new dermal fillers to contribute 8%-10% to revenue in 2025 and projects annual net revenue of $700 million by 2028.

Halozyme Therapeutics Inc & Merck & Co Inc: Halozyme believes Merck’s new version of Keytruda infringes on its patents and is requesting Merck to sign a licensing agreement before selling the new injectable version.

Intel Corp & Micron Technology Inc: President Trump criticized the CHIPS Act, calling it a waste of funds, and suggested that lawmakers should redirect the money to reduce national debt instead. The act was designed to provide $52.7 billion in subsidies for semiconductor manufacturing.

Nvidia Corp: Malaysia is investigating whether Nvidia’s chips were involved in a Singapore fraud case, potentially violating U.S. export controls. The chips were allegedly used in servers transferred to Chinese AI firm DeepSeek.

New York Times Co: A judge indicated he may dismiss the New York Times from a $400 million defamation lawsuit filed by actor Justin Baldoni, who accused the paper of colluding with actress Blake Lively to smear him.

Ross Stores Inc: Ross Stores forecast annual sales and profit below estimates, citing unseasonable weather and economic volatility as factors affecting consumer traffic. The company expects Q1 comparable sales to drop 3%.

Stellantis NV: Stellantis warned that 25% tariffs on products from Mexico and Canada would disadvantage its U.S. brands, such as Chrysler and Jeep, compared to Asian and European competitors not facing similar tariffs.

Toronto Dominion Bank: TD Bank set CEO Raymond Chun’s 2024 salary at C$11.4 million and reduced U.S. retail banking head Leo Salom’s pay by 23% amid ongoing anti-money laundering (AML) issues. Salom will receive a $2 million bonus in 2025 if he meets AML remediation goals.