Global Market Update
Canadian Markets
Canada’s main stock index edged higher on Friday, buoyed by gains in gold prices as the precious metal benefited from a weaker U.S. dollar and ongoing concerns about global economic growth. Investors remained watchful ahead of Donald Trump’s presidential inauguration on Monday, with his administration’s potential policy shifts causing uncertainty. Notably, Trump’s proposal of a 25% tariff on Canadian imports has stirred apprehension among market participants, given that Canada sends three-quarters of its exports to the United States. Additionally, investors are anticipating the release of domestic inflation data next week, which could provide more insight into the Bank of Canada’s trajectory for interest rate adjustments.
American Markets
In the United States, major stock indexes, including the S&P 500 and the Dow Jones Industrial Average, posted gains, on track for their best weekly performances since November. Optimism in U.S. markets was fueled by strong corporate earnings reports from major banks and inflation data that reinforced expectations of potential interest rate cuts. The improved sentiment has encouraged a rally in risk assets, reflecting a shift in investor confidence.
European Markets
European markets also advanced, marking their fourth consecutive weekly rise. The positive momentum was supported by easing government bond yields, which have alleviated some of the pressure on equities. Meanwhile, UK stocks climbed sharply as the pound fell against the dollar. The decline in the pound followed weaker-than-expected retail sales data, intensifying speculation that the Bank of England may soon implement interest rate cuts to stimulate the economy amid slowing growth.
Corporate Stock News
Amgen Inc: The FDA approved Amgen’s Lumakras in combination with Vectibix to treat colorectal cancer in patients with a specific gene mutation. The treatment extended progression-free survival to 5.6 months versus two months with standard care.
Boeing Co: Boeing resumed testing for its delayed 777X widebody jet, with a test flight conducted on Thursday after being grounded since August due to engine mount failures. The first delivery of the 777-9 is now expected in 2026.
F3 Uranium Corp: Haywood Securities re-initiated coverage with a “Buy” rating, citing strong potential for resource expansion at the company’s Patterson Lake North project in the Athabasca Basin.
Figs Inc: The scrubs maker rejected a $6 per share cash offer from private equity firm Story3 Capital Partners, citing confidence in its standalone strategy.
General Motors Co: The NHTSA opened an investigation into 877,710 vehicles due to engine failure reports. Separately, GM and OnStar agreed not to share sensitive vehicle geolocation and driver behavior data with consumer reporting agencies for five years.
Geo Group Inc: A U.S. appeals court upheld rulings requiring Geo Group to pay over $23 million in damages for paying immigrant detainees $1 per day for work, ruling that the company is not exempt from state minimum wage laws.
Glencore Plc & Rio Tinto Ltd: Glencore approached Rio Tinto about a merger last year, but discussions are no longer active. Glencore may reward shareholders after merging its Viterra unit with Bunge.
Goldman Sachs Group Inc & KKR Inc: KKR hired Goldman Sachs to explore selling its stake in Maya, a Philippine fintech firm, potentially valuing Maya at over $2 billion.
J.B. Hunt Transport Services Inc: The trucking company missed Q4 profit estimates due to higher expenses and lower truck counts, posting $1.53 EPS against the $1.61 estimate. Revenue fell 5% year-over-year to $3.15 billion.
Lam Research Corp: Berenberg cut its target price to $90 from $114 due to competition concerns and potential restrictions in China.
Lynas Rare Earths Ltd: Lynas missed Q2 revenue forecasts, reporting A$141.2 million versus the A$154 million consensus, citing weak demand from China and subdued neodymium and praseodymium prices.
Lyft Inc: A judge dismissed a shareholder lawsuit alleging Lyft delayed correcting an earnings release error, ruling there was no intent to defraud.
Mattel Inc: CFO Anthony DiSilvestro will retire on May 15 but will serve as an advisor through August. The company is seeking a successor amid muted toy demand.
Meta Platforms Inc: Meta will implement “Community Notes” for organic content, similar to a feature on X. Paid ads and certain organic posts will initially be exempt.
Morgan Stanley: Barclays raised its target price to $156, citing strong Q4 results and an optimistic outlook for 2025.
Novartis AG: A U.S. appeals court temporarily blocked MSN Pharmaceuticals from launching a generic version of Novartis’ Entresto while considering a longer ban.
Qorvo Inc: Starboard Value acquired a 7.7% stake in Qorvo, aiming to boost its lagging share price.
Schlumberger NV: The oilfield services company beat Q4 profit estimates with EPS of $0.92, benefiting from strong demand in North America and international markets.
Starbucks Corp: Mellody Hobson, lead independent director, will step down after nearly 20 years, citing plans to remain a long-term investor.
Taiwan Semiconductor Manufacturing Co Ltd: TSMC’s Arizona plant faces delays due to U.S. regulatory hurdles, making it unlikely to adopt its latest chip technology before Taiwan.
TPG Inc: A court blocked a $14 billion lawsuit against TPG and Russian firms by tycoon Ziyavudin Magomedov, alleging asset stripping tied to his arrest.
United States Steel Corp: JPMorgan cut the target price of US Steel to $40, citing weaker pricing and operational challenges.
Vistra Corp: A fire at its Moss Landing battery facility in California prompted evacuations. The facility is one of the largest battery energy storage sites globally.
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