North American Markets
Canadian Markets
Canada’s TSX dropped as weakness in commodity markets exerted significant pressure. Metal prices declined, driven by the strength of the U.S. dollar, which makes commodities more expensive for buyers using other currencies. Oil prices also slid, reflecting ongoing worries about reduced demand from China, the world’s second-largest oil consumer, as economic uncertainty lingers in the region. Domestically, investors focused on November’s CPI inflation data, which revealed a slight decline to 1.9% from 2.0% in October, signaling subdued inflationary pressures but also highlighting potential challenges to growth.
American Markets
In the U.S., stock markets softened as traders turned their attention to the Federal Reserve’s policy meeting. Investors are keenly watching for signals regarding the central bank’s approach to interest rates and its outlook on economic growth and inflation, particularly after recent mixed economic data.
Nvidia’s stock declined as data revealed a slowdown in AI-related spending, reflecting cautious capital investment amid economic uncertainties. This could impact Nvidia’s data center revenue, a key growth driver, and its partnerships with cloud and enterprise clients. While short-term challenges arise, analysts remain optimistic about Nvidia’s long-term prospects due to its leadership in AI and strong product pipeline.
European Markets
Across Europe, major indices fell amid losses in the energy and healthcare sectors, exacerbated by broader market caution. The UK’s FTSE 100 experienced a sharp decline, hitting its lowest point in nearly a month, as unexpectedly high wage growth reignited concerns about persistent inflation and potential future interest rate hikes.
Asian Markets
Chinese and Hong Kong stocks declined, reflecting cautious investor sentiment tied to economic uncertainty and concerns about the pace of recovery. However, China’s blue-chip CSI300 index did pare some losses after reports suggested that the government may uphold a 5% economic growth target for 2024, providing a measure of optimism.
Japan’s Nikkei also fell, pulled down by a steep drop in shares of chipmaker Advantest, which weighed on the broader market as technology stocks faced headwinds.
Corporate Stock News
- Alcoa Corp & Chevron Corp: Chevron’s Australian unit will supply 130 petajoules of gas to Alcoa for alumina refineries over a 10-year period starting in 2028.
- Amazon.com Inc: Taiwan is in talks with Amazon to collaborate on the Kuiper broadband satellite constellation to strengthen communication resilience.
- Apple Inc: The Democratic Republic of Congo filed criminal complaints against Apple subsidiaries for alleged use of conflict minerals in the supply chain.
- Aurora Cannabis Inc: ATB Capital Markets lowered the target price to C$8.5 from C$11, citing cautious expectations for market growth in Germany.
- Barclays Plc: Lost a High Court appeal regarding motor finance commission, affecting potential multibillion-pound consumer redress.
- Canopy Growth Corp: ATB Capital Markets downgraded the rating to underperform due to concerns over its overleveraged balance sheet.
- Costco Wholesale Corp: Raymond James raised the target price to $1070 from $1030, citing strong membership growth and potential for new club openings.
- Domino’s Pizza Inc: RBC increased the target price to $500 from $490, attributing growth to marketing and a revamped rewards program.
- Exxon Mobil Corp: Australia’s ACCC sued Exxon Mobil’s affiliate for misleading fuel additive claims.
- Groupe Dynamite Inc: Barclays initiated coverage with an equal weight rating, noting accelerated sales growth and an agile business model.
- Honeywell International Inc: Berenberg raised the target price to $300 from $242, expecting portfolio optimization via spinoffs.
- Johnson & Johnson: The FDA rejected an injectable lung cancer drug due to manufacturing inspection issues, unrelated to efficacy or safety.
- KKR & Co Inc: Australia’s Perpetual stated a tax bill and higher liabilities jeopardize a deal to sell its wealth management business to KKR.
- Kosmos Energy Ltd: Abandoned talks to acquire Tullow Oil, without specifying reasons, shortly after announcing negotiations.
- Merck & Co Inc: Halted trials for two cancer drugs, vibostolimab and favezelimab, following disappointing efficacy data.
- Meta Platforms Inc: Settled a $31.85 million lawsuit in Australia over the Cambridge Analytica data privacy scandal.
- Nucor Corp: Forecasted lower Q4 earnings, citing decreased steel mill volumes and lower selling prices.
- Pfizer Inc: Announced 2025 revenue guidance aligned with Wall Street estimates, aiming to address activist investor concerns.
- PG&E Corp: Secured a $15 billion U.S. Department of Energy loan to fund grid and hydroelectric upgrades for climate resilience.
- Shell Plc: Renewables head Amanda Dasch will leave to join Ørsted as U.S. operations leader.
- Tesla Inc: A German-Canadian was sentenced to prison for stealing Tesla EV battery trade secrets for a competing business in China.
- Volkswagen AG: VW Engaged in late-night talks with labor unions over cost-cutting measures before the holiday season.
- Walmart Inc: Partnered with Meituan for delivery services in China, enhancing its e-commerce presence.
- Well Health Technologies Corp: TD Cowen raised the target price to C$8.5 from C$8, expecting growth from acquisitions.
- Zimmer Biomet Holdings Inc: JPMorgan upgraded the rating to overweight, citing new product launches expected to boost sales.
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.
