Global Markets
Canadian Markets
The Toronto Stock Exchange (TSX) gained on Tuesday as rising oil and gold prices. buoyed energy and gold stocks.
Bank of Nova Scotia shares dropped 3% during intraday trading after reporting earnings that missed analyst expectations, putting downward pressure on the banking sector. The shortfall was attributed to weaker-than-expected performance in its core banking operations, alongside provisions for credit losses. Investors reacted to this signal of potential challenges in the broader Canadian banking sector.
American Markets
U.S. stock indices displayed mixed performance, reflecting market uncertainty as investors assess their risk after a the recent market run. While some sectors gained on optimism over cooling inflation and the possibility of future Federal Reserve rate cuts, others faced pressure from macroeconomic and geopolitical concerns. Notably, market participants monitored ongoing negotiations in Washington over fiscal policy and potential new economic data releases.
European Markets
In Europe, market indexes gained, led by increases in banking shares. Despite this, investors remained cautious amid the escalating political crisis in France. Growing instability raised concerns about potential snap elections, unsettling French equity markets while amplifying volatility in eurozone bonds.
UK markets were also higher, however data was released to show in November, British retailers experienced weaker-than-expected sales. The downturn was largely due to a combination of factors including the timing of Black Friday and subdued consumer confidence. Sales volumes fell by 3.3% year-over-year, marking the weakest performance since April. This contrasts sharply with the 0.6% increase recorded in October, according to the British Retail Consortium.
Japanese Markets
Japan’s Nikkei index reached its highest closing level in three weeks, driven by a strong performance in heavyweight chipmakers. This rally aligns with global optimism about advancements in AI technologies and demand for semiconductors, a key pillar of the Japanese economy.
Corporate Stock News
Advanced Micro Devices Inc, Intel Corp & Nvidia Corp
Chinese industry associations urged domestic companies to avoid U.S. chips, calling them “no longer safe,” amidst geopolitical tensions. This could impact U.S. chipmakers, including Nvidia, AMD, and Intel, which have maintained a presence in China’s market despite export restrictions.
Alamos Gold Inc
CIBC raised its target price to CAD 40 from CAD 38, citing the company’s superior growth prospects beyond 2025.
Alphabet Inc, Amazon.com Inc & Microsoft Inc
Microsoft faces legal action in the UK over allegations of charging excessive license fees for Windows Server when used with competing cloud services like Amazon’s AWS and Google Cloud. This is part of a broader UK regulatory inquiry into cloud computing practices.
American Express
A federal judge in Rhode Island allowed a proposed class action against American Express, alleging overcharging merchants for transaction fees, to proceed. The lawsuit claims AmEx violated antitrust laws with non-discrimination provisions.
Applied Therapeutics Inc
The company received a U.S. FDA warning regarding trial data for its genetic disease drug after its approval was denied. Applied Therapeutics believes the issues were previously addressed but noted regulatory concerns about data handling.
AT&T Inc
AT&T unveiled a three-year growth plan focusing on expanding 5G and fiber services, aiming to double fiber availability and invest $22 billion annually. The company expects $18 billion in free cash flow by 2027 and plans to return over $40 billion to shareholders.
Barclays Plc
CEO C.S. Venkatakrishnan expressed commitment to the bank’s long-term strategic plan, emphasizing a focus on sustained growth and operational improvements.
BlackRock Inc
BlackRock will acquire HPS Investment Partners for $12 billion in an all-stock deal to expand its private credit business, which is projected to grow to $2.6 trillion by 2029. The deal is expected to close in mid-2025.
Bombardier Inc
Honeywell revised its financial forecasts due to investments related to a deal with Bombardier, which includes aviation technologies and resolves pending litigation. Bombardier had alleged Honeywell gave rivals better pricing terms for propulsion systems.
Citigroup Inc
KBW raised its target price to $82 from $70, driven by expectations of a rebound in capital market revenues post-election.
Docusign Inc
Jefferies raised its target price to $95 from $80, highlighting potential growth from international expansion and increased adoption of its Agreement Cloud platform.
Eli Lilly and Co & Novo Nordisk A/S
Novo Nordisk is pushing to accelerate the India launch of Wegovy, a popular weight-loss drug, to counter Eli Lilly’s upcoming Mounjaro launch. Novo’s approval for semaglutide injections was secured in late 2022.
EQB Inc
TD Cowen increased its target price to CAD 126 from CAD 109, citing potential improvements in loan growth and credit trends as interest rates decline.
Exxon Mobil Corp
Exxon is considering selling its 59 Singapore petrol stations, potentially raising $1 billion. The company is also in talks with Guyana on terms for developing a shallow-water oil block.
FedEx Corp
JPMorgan raised its target price to $366 from $350, suggesting a high likelihood of spinning off its FedEx Freight segment.
General Motors Co
GM plans to sell its joint venture stake in a Michigan battery plant to LG Energy Solution, estimating a $1 billion recoup. It also announced a recall of 132,037 trucks due to tailgate issues.
Honeywell International Inc
Honeywell reduced its profit and sales outlook, citing R&D costs for a partnership with Bombardier on aviation technologies. The deal could generate up to $17 billion in revenue over its duration.
Microchip Technology Inc
Microchip lowered its Q3 revenue forecast and announced the closure of its Arizona wafer plant by September 2025, aiming for $90 million in annual savings. Around 500 employees will be affected.
Stellantis NV
DBRS Morningstar is reviewing Stellantis’ credit rating after weaker-than-expected 2023 performance and the resignation of CEO Carlos Tavares, attributed to strategic disagreements.
Tesla Inc
A Delaware court upheld a ruling that Elon Musk is not entitled to a $56 billion pay package, despite shareholder votes. Separately, Tesla’s China EV sales fell 4.3% year-over-year in November.
TotalEnergies SE
The French oil major is nearing a $2 billion acquisition of VSB Group, a renewable energy developer with a 10 GW project pipeline across Europe.
Ulta Beauty Inc
Piper Sandler raised its target price to $360 from $357, praising consistent performance and long-term growth prospects ahead of Q3 results.
United States Steel Corp
Donald Trump opposed Nippon Steel’s $15 billion acquisition bid for U.S. Steel, citing national security concerns. Nippon committed to preserving union jobs and investing in U.S. facilities.
Verticalscope Holdings Inc
Eight Capital raised its target price to CAD 18 from CAD 15, pointing to promising data licensing opportunities and catalysts for growth.
Zscaler Inc.
Zscaler raised its annual revenue forecast following strong quarterly results. However, shares fell after investor dissatisfaction with the financial update. The company also announced CFO Remo Canessa’s retirement.
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.
