Global Markets
Canadian Markets
Canada’s TSX dropped over half a percent, pressured by falling gold prices which weighed heavily on the mining sector. The decline in gold prices came amidst concerns about global economic slowdown and rising interest rates, which hurt demand for precious metals as a safe haven investment. Mining companies, particularly those involved in gold extraction, felt the brunt of this downturn, leading to a broader pullback in the TSX.
American Markets
American markets were down across major indices. Investors were cautious due to uncertainty over future economic growth and interest rate policies. However, one of the few bright spots was Broadcom, the chipmaker, which posted an upbeat forecast. Broadcom’s positive outlook was driven by strong demand in the semiconductor sector, particularly for its chips used in data centers, and it helped the stock rise amid broader market weakness.
European Markets
European stocks were down across the board, with a notable negative catalyst coming from the UK, where the economy reported a surprising contraction in its October GDP reading. The 0.3% decline was unexpected, as analysts had predicted modest growth. The contraction added to concerns about the economic outlook in the UK, with the ongoing impact of high inflation and rising interest rates contributing to weak domestic growth. This news dampened investor sentiment across European markets, leading to declines.
Japanese Markets
Japan’s markets closed lower as investors chose to take profits following a strong four-session rally. After experiencing a series of gains, market participants appeared to be locking in profits, causing a pullback in Japanese equities. The recent rally had been fueled by optimism over improving global economic conditions and a weaker yen, but cautious sentiment resurfaced as traders looked to secure their gains.
Corporate Stock News
Azek Company Inc
- RBC raises target price to $58 from $50, citing a positive outlook on 2025 earnings and sustained growth.
Amazon.com Inc & Meta Platforms Inc
- Amazon and Meta have both donated $1 million to President-elect Donald Trump’s inaugural fund.
Audi (Volkswagen)
- Brussels plant to cease production by February 28 next year due to the lack of viable alternatives.
Bank of Nova Scotia
- US Federal Reserve approves Scotiabank’s purchase of up to 14.99% voting shares in KeyCorp.
Baidu Inc
- Baidu and Geely address disputes within their electric vehicle venture, Ji Yue Auto, including issues over severance and welfare.
Blackstone Inc & Goldman Sachs Inc
- Blackstone and Bain Capital among final bidders for Mitsubishi Tanabe Pharma, a deal valued at $3-3.5 billion.
Broadcom Inc
- Broadcom forecasts strong AI chip demand, beating Q4 revenue expectations and projecting $14.6 billion Q1 revenue.
- JPMorgan raises target price to $250 from $210.
CGX Energy Inc & Frontera Energy Corp
- Companies explore options to resolve disputes with Guyana over offshore block rights, potentially heading to arbitration.
Ciena Corp
- JPMorgan raises target price to $84 from $65, driven by growth potential in cloud computing and AI technologies.
Costco Wholesale Corp
- Costco surpasses Q1 revenue and profit expectations; D.A. Davidson raises target price to $900 from $880.
Editas Medicine Inc
- Announces job cuts (65% workforce) and cost reduction; Leerink Partners cuts target price to $1 from $8.
Empire Company Ltd
- Desjardins Securities raises target price to C$50 from C$47 after better-than-expected Q2 profit.
Gilead Sciences Inc
- Appoints Dietmar Berger as Chief Medical Officer, succeeding Merdad Parsey.
Hershey Co & JPMorgan Chase & Co
- Hershey CEO Michele Buck elected to JPMorgan’s board.
HSBC
- Reviews retail banking operations globally, considering major reductions outside the UK and Hong Kong.
Imperial Oil Ltd
- TD Cowen raises target price on Imperial Oil to C$96 from C$93, following a positive crude production forecast for 2025.
Japan’s Kansai Electric Power Co
- Acquires a 49% stake in Iberdrola’s Windanker offshore wind project in Germany.
Macy’s Inc
- CEO re-evaluates financial controls after hidden expenses of $154 million are uncovered.
Meta Platforms Inc
- Launches Meta Motivo, an AI model to improve digital avatar motion in the Metaverse.
Stellantis NV
- CEO Carlos Tavares resigns over strategic disagreements with the board.
Telus Corp
- National Bank cuts target price to C$22 from C$24, citing risks from immigration policy changes and pricing pressures.
Tesla Inc
- Trump’s transition team advocates ending crash-reporting rules, potentially benefitting Tesla’s regulatory position.
T-Mobile US Inc
- Announces $14 billion share buyback as part of a broader shareholder returns plan.
Transat AT Inc
- CIBC raises target price to C$1.8 from C$1.45, highlighting a strong 2024 finish and a positive 2025 outlook.
UnitedHealth Group
- CEO Andrew Witty reflects on healthcare system flaws following the death of executive Brian Thompson.
Upbound Group Inc
- Agrees to acquire fintech firm Brigit in a $460 million cash-and-stock deal to expand credit offerings.
Volkswagen’s Audi
- Announces the cessation of production at its Brussels plant, effective February 2024.
Well Health Technologies Corp
- CIBC raises target price for Well Health Technologies to C$7 from C$5.25, citing recent acquisitions and plans for a 2025 spinout.
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.
