Global Market Update
Canadian Markets
Canada’s main stock index saw a gain of over 1% as gold prices surged, driven by a spike in demand amid the worsening U.S.-China trade tensions. While Canada and China were in talks about a free trade agreement between the 2 countries. However, despite the boost in gold prices, oil prices slipped by 2%, reflecting concerns about global supply and demand dynamics, as well as broader economic slowdowns that might weigh on energy consumption.
American Markets
In the U.S., stocks were mixed, with a particular strain on the tech-heavy Nasdaq. The index was notably impacted by a downturn in shares of Alphabet (Google’s parent company) and Advanced Micro Devices (AMD), both of which reported weaker-than-expected forecasts. This caused concerns among investors that the tech sector, which has been a major driver of market gains, could face headwinds due to lower-than-anticipated growth, especially as companies grapple with rising input costs and market saturation.
European Markets
In Europe, stock markets generally saw positive movement, but the gains were tempered by declines in the automobile and technology sectors. This was overshadowed by strong performances in the healthcare sector, particularly after Novo Nordisk, the Danish pharmaceutical giant, reported impressive earnings. The success of Novo Nordisk, which is known for its diabetes and weight-loss treatments, provided some optimism for the broader healthcare market.
UK stocks rose, buoyed by reports that Chinese automaker BYD was outselling Tesla in the UK. This shift in the automotive market fueled optimism for alternative energy and electric vehicle (EV) companies, signaling a competitive challenge to Tesla’s dominance in the region.
Canadian Prime Minister Justin Trudeau signaled his intention to revive trade talks with the UK. With growing concerns over U.S. tariff policies, Trudeau views the potential for stronger UK-Canada trade relations as a key strategic move to counterbalance the effects of increasing trade barriers between the U.S. and other global partners. The UK-Canada trade relationship has gained new urgency in light of rising tensions with the U.S. over tariffs and potential trade disputes, with both countries looking to build stronger economic ties outside the influence of U.S. policies.
Corporate Stock News
- Advanced Micro Devices Inc: Exceeded analyst estimates but struggled against Nvidia in AI. Reported fourth-quarter data center revenue of $3.9 billion, missing the $4.15 billion estimate.
- Amgen Inc: Posted a 13% increase in earnings to $5.31 per share. Revenue rose 11% to $9.1 billion, exceeding expectations. Full-year 2025 outlook predicts adjusted earnings per share of $20.00 to $21.20.
- Atmos Energy Corp: Reported a rise in first-quarter profit, benefiting from higher rates. Net income rose to $351.9 million, or $2.23 per share.
- Bunge Global SA: Missed Wall Street expectations, with a drop in agribusiness earnings due to a global crop glut. Fourth-quarter adjusted profit was $2.13 per share, below estimates of $2.24.
- Chipotle Mexican Grill Inc: Forecasted a 60-basis-point impact from tariffs, with annual sales growth expected in the low to mid-single digits. Fourth-quarter comparable sales rose 5.4%, below expectations.
- DXC Technology Co: Beat profit estimates with strong enterprise spending but missed revenue expectations. Forecasts Q4 revenue of $3.10-$3.13 billion.
- Electronic Arts Inc: Forecasted lower-than-expected Q4 bookings due to slowed demand for its soccer franchise. Third-quarter bookings of $2.22 billion missed estimates.
- Enphase Energy Inc: Forecast first-quarter revenue above expectations. Adjusted net operating income was $120.4 million, higher than the $100.4 million expected.
- Essex Property Trust Inc: Reported better-than-expected fourth-quarter funds from operations (FFO). Full-year FFO forecast between $15.56-$16.06 per share, slightly below analysts’ expectations.
- Equinor ASA: Raised its 2030 oil and gas output forecast while scaling back renewable energy plans. Q4 earnings fell to $7.90 billion, but beat estimates of $7.71 billion.
- Fair Isaac Corp: Reported a 18.6% rise in profit, driven by growth in its scores and software segments. Revenue rose 15.1% to $440 million.
- FMC Corp: Forecasted first-quarter revenue below estimates due to weak demand, with expected revenue between $750 million and $800 million.
- GSK PLC: Lifted its 2031 sales forecast to nearly $50 billion, driven by investments in specialty medicines. 2024 sales growth was 7%.
- IDEX Corp: Reported better-than-expected profits, with revenue up 9% to $862.9 million. Health and science technology segment sales rose 19.3%.
- Jack Henry & Associates Inc: Reported a 6.4% rise in second-quarter profit, with demand for financial technology services driving growth.
- Juniper Networks Inc: Topped analysts’ estimates, reporting Q4 revenue of $1.4 billion and expected adjusted earnings of 64 cents per share.
- Lumen Technologies Inc: Exceeded Q4 revenue expectations, reporting $3.33 billion, driven by AI-related demand. Full-year 2025 free cash flow forecast between $700 million-$900 million.
- Match Group Inc: Appointed a new CEO and forecasted 2025 revenue below analyst expectations. Quarterly revenue fell 1% to $860.2 million.
- Mattel Inc: Forecasted full-year profit above Wall Street expectations, with adjusted EPS projected between $1.66-$1.72. Also planning $600 million in share repurchases.
- Mondelez International Inc: Forecasted a larger-than-expected drop in annual profit due to higher cocoa prices. Adjusted profit expected to fall 10%.
- Novo Nordisk A/S: Forecasted slower growth in 2025 after a strong 2024. Expecting sales growth between 16%-24%, below last year’s 26% growth.
- Omnicom Group Inc: Beat Q4 estimates, with a 5.9% increase in advertising and media segment revenue. Reported adjusted earnings of $2.41 per share.
- Prudential Financial Inc: Reported a rise in adjusted profit due to strong performance in global investment management. Assets under management rose to $1.51 trillion.
- Simon Property Group Inc: Beat Q4 funds from operations (FFO) estimates, with leasing demand remaining strong. Expected 2025 net income in the range of $6.95-$7.20 per share.
- Snap Inc exceeded Wall Street expectations with a quarterly profit, driven by improvements in its advertising platform and increased daily active users of Snapchat. They forecast first-quarter revenue of $1.33 billion to $1.36 billion, surpassing estimates.
- TotalEnergies posted better-than-expected earnings due to strong trading profits in the gas market, and announced a 7% dividend increase. The company plans continued investments in renewable energy and expects U.S. LNG exports to nearly double in the next few years.
- Toyota Motor Corp raised its full-year operating profit forecast despite a decline in profits for the quarter. The company remains confident despite potential U.S. tariffs.
- Veralto Corp reported a profit and revenue increase, driven by strong demand for industrial water treatment services, with a 4.5% revenue boost for the quarter.
- Uber Technologies Inc surpassed expectations for quarterly revenue, with strong growth in both ride-hailing and delivery services. The company also reported a significant net profit, bolstered by a tax benefit.
- Walt Disney Co beat earnings expectations, with a 44% jump in adjusted earnings per share for DIS, supported by the success of “Moana 2” and strong streaming profits.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
