Market Analysis & Stock News: January 21st, 2025

Market Analysis & Stock News: January 21st, 2025

Global Market Update

   Canadian Markets

Canada’s main stock index rose, as investors digested data showing the inflation rate for December dropped to 1.8%. This decline has been attributed primarily to the temporary suspension of retail sales tax collection, which alleviated some price pressures for consumers. The unexpected drop in inflation has raised questions about the Bank of Canada’s next steps regarding monetary policy.

Meanwhile, uncertainty looms as U.S. President Donald Trump announced the potential imposition of tariffs on Canadian goods, set to take effect on February 1st. The proposed tariffs have caused concern among Canadian exporters and investors, who are wary of the broader implications for cross-border trade and the North American supply chain.

American Markets

U.S. stock indices moved higher with some fluctuations, driven by optimism surrounding Trump’s recent executive orders. These directives, targeting sectors such as energy and immigration, have sparked debate over their potential economic impact. Traders also remain watchful of Trump’s initial actions on trade policy, which could have far-reaching effects on international commerce and corporate profits.

European Markets

In Europe, major stock indices rose modestly, as gains in the financial and healthcare sectors were offset by broader losses across other industries. Investors in the region appeared cautious, balancing hopes for economic resilience with ongoing concerns about geopolitical tensions and global trade.

UK stocks also moved higher as the pound dropped on hope of more cuts, while positive earnings provided support. The IMF upgraded the UK’s economic outlook despite tariff risks

Commodities

Oil prices, on the other hand, declined as investors assessed Trump’s plans to boost oil and gas production domestically. Speculation over increased U.S. supply weighed on the market, even as traders kept a close eye on OPEC’s efforts to stabilize prices through coordinated output cuts.

Gold prices surged to their highest level in over two months, driven by safe-haven demand amid lingering uncertainties about global trade and economic policy under the new U.S. administration.

Corporate Stock News

Advanced Micro Devices Inc:

  • Analyst Action: Citigroup cuts target price to $175 from $200.
  • Reason: Anticipates weaker first-quarter revenue guidance due to lower data center and embedded sales.

Apple Inc:

  • Analyst Action: JPMorgan cuts target price on Apple to $260 from $265.
  • Reason: Challenging outlook from market share losses in China and stronger dollar headwinds.

Bank of America Corp:

  • News: Plans to award stock to global employees earning up to $500,000 annually, covering about 97% of the workforce, totaling over $1 billion.

Bank of Nova Scotia:

  • News: Exited the Net-Zero Banking Alliance, joining other major Canadian banks. Remains committed to its Climate Transition Plan.

Barclays Plc:

  • News: Appointed Paul Johnson as head of equities for Asia Pacific.

BHP Group Ltd:

  • News: BHP reported a 17% surge in copper production and steady iron ore output in the December quarter. Maintains high-end production forecasts.

BrightSpring Health Services Inc:

  • News: Divesting its community-based healthcare division for $835 million to streamline operations and reduce debt.

Chevron Corp:

  • News: U.S. FTC approved its $53 billion takeover of Hess, subject to final regulatory reviews. Exploring energy exploration opportunities in Greece.

Cenovus Energy Inc:

  • Analyst Action: Jefferies cuts target price to C$30 from C$32.
  • Reason: Lower-than-expected cash flow in Q4 due to weak downstream performance.

Costco Wholesale Corp:

  • News: Teamsters union authorized a nationwide strike if no agreement is reached by January 31.

Ford Motor Co:

  • News: NHTSA upgraded investigation into its BlueCruise system due to limitations in detecting stationary vehicles at highway speeds.

General Motors Co & Stellantis NV:

  • News: GM accused of age discrimination; Stellantis unit faces allegations of tolerating pervasive sexual harassment.

Intel Corp:

  • Analyst Action: Citigroup cuts target price to $21 from $22.
  • Reason: Weak PC demand and expected share loss in traditional servers.

Monday.com Ltd:

  • Analyst Action: Jefferies cuts target price to $300 from $350.
  • Reason: Concerns about high revenue guidance for 2025 amidst soft enterprise growth.

Moderna Inc:

  • News: Awarded $590 million by the U.S. government to advance development of bird flu vaccine and pandemic preparedness.

Nu Holdings Ltd:

  • News: Considering moving legal domicile to the UK as part of a global expansion strategy.

Redwire Corp:

  • News: Acquired Edge Autonomy for $925 million in a cash-and-stock deal to enhance revenues and core profit.

SLB:

  • Analyst Action: Zephirin Group raises target price to $52 from $50.
  • Reason: Accelerated share buybacks expected to boost stock price.

Suncor Energy Inc:

  • Analyst Action: Jefferies raises target price of Suncor to C$58 from C$54.
  • Reason: Record Q4 production and refining throughput.

VinFast Auto Ltd:

  • News: Entering the Indian EV market with premium SUVs, competing with Mahindra and BYD.

Walgreens Boots Alliance Inc:

  • News: Accused by U.S. DOJ of contributing to the opioid epidemic through unlawful prescriptions.

 

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