Global Market Update
Canadian Markets
Canada’s main stock traded slightly in negative territory as investors weighed the potential implications of new U.S. tariffs on steel and aluminum imports. President Trump also mentioned he could hit Canadian made autos with a 100 percent tariff. Data just released today showed that increased legislation is affecting Canada’s economic growth, both internally and internationally. Data also showed that consumer and business bankruptcies reached a 15 year high in 2024.
American Markets
In the U.S., stocks were largely treading water as investors tried to make sense of the broader economic signals. The stock market remained in a holding pattern, with traders closely examining earnings reports and the statements from the Federal Reserve. The Fed’s latest communication hinted that interest rates would remain unchanged for the time being, signaling stability in the near term. However, the market remained on edge about inflation and any future moves the central bank might take to curb it.
The U.S. dollar also struggled for direction, moving sideways as investors weighed conflicting forces. On one hand, positive earnings reports from key sectors helped provide some support for the greenback, but on the other hand, concerns over global trade tensions and the Fed’s future actions kept the currency from gaining momentum.
European Markets
In Europe, shares were broadly higher, driven by a strong performance in oil stocks. BP, one of the UK’s largest oil companies, helped push the market up as investors reacted positively to the company’s earnings or strategic announcements. Oil prices continued to rise on concerns about supply disruptions, particularly as geopolitical tensions in the Middle East, and concerns about production cuts, remained in focus. However, this was coupled with the looming threat of tariffs on UK steel exports, which could devastate the UK’s steel industry. As the UK faces potential new trade barriers, there are concerns about the long-term viability of the sector, and many steel manufacturers are bracing for financial fallout if tariffs on steel and aluminum imports from the U.S. increase.
Corporate Stock News
Arch Capital Group Ltd: The insurer posted a 60% fall in quarterly profit, primarily due to higher costs related to claims investigations and settlement. The company also projected an insured market loss due to the California wildfires, estimating its share between $450 million and $550 million.
BP Plc: BP reported a 35% decline in annual profits, missing analysts’ expectations, and a 61% drop in fourth-quarter profits. CEO Murray Auchincloss pledged to reset the company’s strategy, amid pressure from activist investor Elliott Investment Management.
Carlyle Group Inc: The asset manager’s fourth-quarter distributable earnings missed expectations, with a 24.1% decline in private equity earnings. Despite this, it reported record fee-related earnings and a 4% increase in assets under management.
Charles Schwab Corp: Toronto-Dominion Bank announced plans to sell its entire 10.1% stake in Schwab, worth about $14.6 billion, following a U.S. fine. Schwab will buy back part of the shares from TD for $1.5 billion.
Chevron Corp: Chevron’s oil and gas reserves have reached their lowest point in at least a decade. The company’s planned acquisition of Hess has stalled due to a court battle with Exxon Mobil. The deal would have provided Chevron with stakes in Exxon’s lucrative Guyana oilfields.
Cincinnati Financial Corp: The insurance firm posted a 38% increase in fourth-quarter profit, driven by gains in its underwriting business and higher investment income. Earned premiums grew by 15%, with commercial lines insurance seeing a 7% rise in premiums.
Coca-Cola Co: Coca-Cola surpassed Wall Street estimates for fourth-quarter profit and revenue, with higher demand for sodas and juices and price hikes. The company forecasts organic revenue growth of 5% to 6% for 2025, slightly above its long-term target.
Coty Inc: Coty cut its annual profit forecast after posting a surprise drop in quarterly revenue, impacted by slower cosmetics demand and retailer inventory cuts. The company now expects annual adjusted profit between 50 and 52 cents per share, down from the prior forecast.
DuPont de Nemours Inc: DuPont raised its 2025 profit forecast and beat fourth-quarter earnings estimates, benefiting from strong demand in electronics and a recovery in its water and protection segments. The company expects 2025 sales of $12.8 billion to $12.9 billion.
Humana Inc: The health insurer forecasted annual profit below Wall Street estimates, citing elevated medical costs tied to its government-backed Medicare Advantage plans. The company expects adjusted profit per share of about $16.25 for 2025.
Leidos Holdings Inc: The defense contractor exceeded earnings expectations for the fourth quarter, with revenue growing 10% to $4.37 billion. The company also provided a 2025 profit per share forecast in line with expectations.
Phillips 66: Activist investor Elliott Investment Management has acquired a $2.5 billion stake in Phillips 66 and plans to push for operational changes, including the sale or spin-off of the company’s midstream business.
Shopify Inc: Shopify exceeded market estimates for holiday quarter sales, driven by healthy consumer spending and new AI features. The company expects mid-twenties percentage growth in the current quarter and higher operating expenses compared to the previous quarter.
Southwest Airlines: Southwest appointed Tom Doxey as its new CFO, effective March 10. Doxey, a veteran of Allegiant Air and Breeze Airways, will take over the financial leadership at the airline.
Toronto-Dominion Bank: TD announced it would sell its 10.1% stake in Charles Schwab, valued at $14.6 billion, following a U.S. money laundering fine. The sale is part of a broader strategic review due to regulatory restrictions.
Vertex Pharmaceuticals Inc: Vertex reported a nearly 16% increase in fourth-quarter revenue, driven by strong cystic fibrosis drug sales. The company forecasts 2025 revenue of $11.75 billion to $12.0 billion, slightly above analyst expectations.
Walgreen Boots Alliance Inc: Walgreens was ordered to pay over $987 million in an arbitration dispute over COVID-19 testing. The company plans to appeal the ruling.
UBS: UBS CEO Sergio Ermotti indicated that the company would soon have clarity on the capital requirements under new Swiss banking regulations.
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