Global Market Update
Canadian Markets
Canada’s main stock index dropped as both oil and gold prices declined, reflecting concerns about global economic conditions and commodity price volatility. Investors were also processing earnings reports from several prominent domestic companies, which contributed to market uncertainty. A notable blow to sentiment came from Lightspeed’s stock, which plummeted following the cancellation of a major sale deal.
Data out showed that Canadian economic activity contracted in January for the first time in five months, with slower employment growth and rising prices, according to the Ivey Purchasing Managers Index (PMI) data released today.
American Markets
American stock indexes traded in a mixed fashion. Corporate earnings continued to be the focal point of investor attention, with some major companies posting results that exceeded expectations. However, broader sentiment was somewhat tempered by the absence of any significant new developments in the ongoing tariff dispute between the U.S. and its trading partners.
Data released revealed American workers are taking longer to find jobs, as continuing weekly unemployment insurance claims rose to 1.89 million for the week ending Jan. 25, up from 1.86 million the previous week and near a three-year high. Although new claims remain low, indicating a low layoff environment, the rise in continuing claims suggests it is becoming more difficult for workers to secure new employment.
European Markets
European markets finished up considerably, with some indexes reaching a new record high. A key driver of this surge was a series of upbeat earnings reports from major corporations. AstraZeneca, the British pharmaceutical giant, saw its stock rise after posting strong results, signaling confidence in its future growth prospects. Similarly, France’s Societe Generale was among the companies that helped buoy the European market, as it reported solid earnings despite challenging macroeconomic conditions.
The UK’s FTSE 100 index also reached a historic high, supported by a surprise monetary policy move from the Bank of England. The central bank’s decision to cut interest rates by 25 basis points sent a positive signal to markets, suggesting that policymakers were willing to take action to support economic growth amid uncertainties. The move was interpreted as a proactive stance to prevent a potential slowdown, giving investors renewed confidence in the stability of the British economy.
Corporate Stock News
Aflac Inc: Reported Q4 profit below estimates, affected by weakness in its Japan unit. Adjusted earnings of $1.56 missed the $1.62 estimate.
Align Technology: Lowered its Q1 revenue forecast below analysts’ estimates due to weaker demand from younger patients for its Invisalign aligners.
Allstate Corp: Reported stronger-than-expected Q4 profits, driven by underwriting gains and higher investment returns.
Am Holdings PLC & Qualcomm Inc: Qualcomm’s license agreement with Arm Holdings remains intact after Arm withdrew its breach notice.
ArcelorMittal: Forecasted improved steel demand in 2025 and confirmed an investment budget similar to 2024.
ArcelorMittal SA: Announced a new steel manufacturing plant in Alabama for the U.S. automotive sector.
Arm Holdings: Narrowed its 2025 revenue guidance but topped Q4 expectations, forecasting a slight revenue miss for the full year.
AstraZeneca: Forecasted strong revenue growth in 2025, despite a potential fine in China related to unpaid import taxes for its cancer drugs.
AvalonBay Communities: Raised its full-year 2025 earnings forecast above analyst estimates, continuing to benefit from strong rental demand.
Becton Dickinson: Reported better-than-expected Q1 results, raised profit forecasts, and announced plans to separate its life sciences unit.
Boeing Co: Forecasted strong demand for aircraft in India and South Asia over the next 20 years.
Bristol Myers Squibb: Reported stronger-than-expected Q4 earnings but lowered 2025 revenue forecasts due to generic competition.
Canada Goose: Missed Q3 revenue estimates, indicating weak sales in the Chinese luxury market.
Cemex: Reported a Q4 profit but missed estimates, with sales dropping. Launched a cost-saving program to boost earnings.
Citigroup Inc: Promoted 8,500 employees as part of its year-end process.
Cognizant Technology Solutions: Forecasted lower-than-expected revenue for 2025, citing uncertainty about interest rate cuts and a slowdown in IT spending.
Corpay Inc: Reported an 18% jump in Q4 profit, driven by strong performance in corporate and lodging payments.
Corteva Inc: Posted a smaller Q4 loss and forecasted lower-than-expected operating earnings for 2025, with a focus on share repurchases.
Eli Lilly: Forecasted above-estimate profits for 2025, driven by its diabetes and weight-loss treatments, but missed Q4 sales estimates for Mounjaro and Zepbound.
Emerson Electric Co: Raised target price to $143 from $133.
Finning International Inc: RBC raised its target price to C$49 from C$46 following strong Q4 results and a solid 2025 outlook.
Ford Motor Co: Projected $5.5 billion losses on EV and software operations in 2025 but reported stronger-than-expected Q4 results. Cut target price to $9 from $10.
Globe Life Inc: Reported an increase in Q4 profits, driven by strong underwriting and higher investment income.
GSK: Announced a $2.5 billion share buyback and raised its long-term sales target to $50 billion, driven by growth in HIV and cancer drugs.
Hilton Worldwide: Forecasted 2025 profit below estimates due to weak U.S. leisure travel demand, despite meeting Q4 revenue expectations.
Hologic Inc: Lowered its 2025 revenue forecast, citing weakness in breast health product sales.
Honeywell International: Announced plans to split into three separate companies by 2026, while lowering profit and sales forecasts for 2025.
ING Groep NV: Shares fell after the bank provided a lukewarm outlook, expecting flat revenue growth for 2025 due to a drop in net interest income.
Kenvue Inc: Forecasted 2025 profit below estimates, hurt by a stronger dollar and weak demand for cough and cold products. Organic sales are expected to grow between 2-4%. Q4 adjusted earnings met estimates.
LabCorp Holding Inc: Forecasted 2025 revenue above expectations, driven by strong demand for diagnostic tests. Q4 adjusted profit exceeded estimates.
Linde PLC: Expected slower earnings growth in Q1 due to currency effects, though Q4 earnings exceeded estimates.
Markel Group Inc: Initiated a review of its business structure.
McKesson Corp: Missed Q3 revenue estimates due to weaker sales in the U.S. pharmaceutical segment. Revised 2025 profit forecast.
MetLife Inc: Reported higher Q4 profit, driven by premiums and investment income growth.
Mid-America Apartment Communities Inc: Forecasted 2025 FFO below estimates due to pressure on rents in key markets. Q4 revenue missed estimates.
Molina Healthcare Inc: Reported higher-than-expected costs for Medicaid plans. Projected 2025 total revenue of $44 billion.
News Corp: Beat Q2 estimates with growth in digital real estate, book publishing, and Dow Jones, offsetting weakness in news media.
Novo Nordisk: Forecasted slower growth in 2025 despite strong Q4 sales from its obesity drug, Wegovy.
O’Reilly Automotive Inc: Reported higher Q4 revenue, but a slight drop in profit. Consumers favored repairs over new vehicle purchases.
PTC Inc: Lowered full-year revenue and earnings forecasts, citing increasing competition and tariff concerns.
Qualcomm Inc: Forecasted higher-than-expected sales and profits, driven by demand for AI-driven smartphones. Q1 results exceeded estimates. Raised target price to $195 from $180.
Skyworks Solutions Inc: Projected revenue decline in its mobile segment and below-estimate profits for the current quarter.
Steris plc: Lowered 2025 profit forecast due to a stronger dollar and reported quarterly revenue slightly below estimates.
Suncor Energy Inc: Beat Q4 profit estimates, benefiting from higher oil production and refined product sales. Reaffirmed higher production forecast.
Tapestry Inc: Raised its annual sales forecast, betting on strong demand for high-end products like Tabby bags and boots.
Thomson Reuters Corp: Beat Q4 estimates and raised 2025 organic revenue growth target.
TotalEnergies: Beat Q4 earnings expectations due to strong gas trading profits, despite lower oil prices and weak fuel demand.
TotalEnergies SE: Will expand U.S. LNG investments, confident in U.S. energy production policies.
UBS Group AG: UBS warned that additional capital requirements could strain its strategy.
UDR Inc: Forecasted 2025 FFO below estimates, with rental rate declines in its Sun Belt properties.
Walt Disney Co: Raised target price to $130 from $128.
Yum Brands Inc: Surpassed Q4 comparable sales estimates, driven by Taco Bell’s budget-friendly offerings.
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.
