Global Markets
Canadian Markets
Canada’s main stock index fell as declines in oil and gold prices weighed on energy and materials sectors, two key pillars of the Canadian economy. The downturn was influenced by demand concerns for crude oil, fueled by uncertainties around global economic growth and the potential impact of prolonged higher interest rates..
American Markets
American stocks managed to recover from the previous session’s sell-off, which was triggered by the Federal Reserve’s outlook suggesting a slower pace of rate cuts in 2024. The central bank’s cautious stance dampened hopes for more accommodative monetary policy, keeping investors on edge about the future trajectory of borrowing costs.
Micron Technology’s shares tumbled sharply due to disappointing forward guidance, which highlighted weak demand in the semiconductor market. A downgrade from Bank of America further exacerbated the stock’s decline, contributing to a broader sense of uncertainty in the tech sector.
European Markets
European Stocks were deep in the red, following direction from Wall Street’s previous downbeat session.
The Bank of England maintained its interest rate at 4.75%, marking a pause in its tightening cycle. The decision revealed a growing policy split among the central bank’s policymakers, with some favoring continued hikes to curb inflation, while others argued for a more cautious approach to avoid stifling economic growth.
Asian Markets
Japanese markets fell as The Bank of Japan held its benchmark interest rate steady, in line with expectations. However, the central bank’s lack of clear guidance on future policy adjustments led to a decline in the yen, reflecting investor frustration with the ambiguity.
Chinese stocks also fell as some banks are signaling they will raise mortgage interest rates as their profit lines are coming under pressure.
Market Outlook
Globally, equity markets faced significant pressure as investors grappled with the likelihood of higher interest rates persisting into 2025. This sentiment was mirrored across major markets, as the prospect of elevated borrowing costs weighed on growth expectations.
Corporate Stock News
Accenture Plc
The IT service provider exceeded Wall Street’s Q1 revenue expectations with $17.7 billion, beating the $17.12 billion estimate. Bookings increased to $18.7 billion, up from $18.4 billion a year ago. Annual revenue growth is projected at 4%-7%, higher than its earlier 3%-6% forecast.
Alphabet Inc & Meta Platforms Inc
Big Tech companies, including Meta and Alphabet, are partnering with geothermal startups to power AI-intensive data centers. While Alphabet’s Google explores clean energy for sustainability, long-term investments face competition from natural gas.
Amazon.com Inc
Workers at seven facilities went on strike during the holiday rush, demanding union contract negotiations. Amazon downplayed operational impacts and accused the union of intimidation. Separately, Canaccord Genuity raised the target price to $265 from $230, citing strong performance in eCommerce, cloud services, and advertising.
Apple Inc.
Apple is in early talks with Tencent and ByteDance about integrating AI models in iPhones for the Chinese market. Meanwhile, Apple criticized Meta’s extensive software tool access requests, citing privacy and security concerns.
Arm Holdings Plc & Qualcomm Inc
Qualcomm’s 2021 acquisition of Nuvia for $1.4 billion is under scrutiny as Arm claims licensing breaches. Qualcomm defended the deal as cost-saving on Arm royalties. Closing arguments in the case are expected Friday.
ASML Holding NV
The chip equipment maker appointed Bruno Le Maire, former French finance minister, as an adviser. The move aligns with its aim to boost Europe’s semiconductor ecosystem amidst dynamic geopolitical challenges.
Booking Holdings Inc
Italy’s AGCM concluded an investigation into Booking.com’s Preferred Partner Program. The company’s commitments addressed antitrust concerns, ensuring fairer pricing and market competition.
Boston Scientific Corp
The FDA classified a recall of its POLARx Cryoablation Balloon Catheters as “most serious,” though it involves updating usage instructions rather than withdrawing the product. Risks include bleeding, infections, or death.
Chevron Corp.
Chevron and Woodside agreed on an asset swap in Western Australia, with Chevron exiting the North West Shelf venture and Woodside exiting the Wheatstone LNG project. Chevron will pay Woodside up to $400 million.
CVS Health Corp
The DOJ accused CVS of filling illegal opioid prescriptions and violating federal regulations since 2013, contributing to the opioid crisis. CVS allegedly ignored red flags to meet performance metrics.
Fission Uranium Corp
Paladin Energy received Canadian approval for a C$1.14 billion acquisition of Fission Uranium. The deal, expected to close by January 2025, includes restrictions on China-sourced funding and uranium sales.
Franco-Nevada Corp
Sibanye Stillwater entered a $500 million streaming deal with Franco-Nevada, exchanging cash for gold and platinum rights amid declining PGM prices.
Lamb Weston Holdings Inc
Michael Smith, COO, will replace Thomas Werner as CEO on Jan. 3 following investor pressure. The company revised FY2025 net sales guidance to $6.35-$6.45 billion, down from $6.6-$6.8 billion.
Lennar Corp
Lennar the homebuilder missed Q4 profit estimates, reporting $4.06 EPS versus the expected $4.16. It forecasts delivering 17,000-17,500 homes in Q1 2025 amid volatile mortgage rates.
Mastercard Inc
Jefferies increased its target price to $620 from $610, citing steady growth in new payment flows.
Mesoblast Ltd
The FDA approved Mesoblast’s Ryoncil therapy for graft-versus-host disease in pediatric patients, marking the first approval for mesenchymal stromal cell therapy.
Micron Technology Inc
MU’s Shares plunged on weak forecasts, overshadowing a solid Q1 revenue of $8.71 billion. JPMorgan lowered its target price to $145 from $180 due to NAND and DRAM segment weaknesses.
Novo Holdings
Novo Nordisk’s controlling shareholder completed a $16.5 billion deal for Catalent, securing weight-loss drug Wegovy’s supply chain.
Novartis AG
The company plans to close MorphoSys sites in Munich and Boston, affecting 330 jobs, as part of its restructuring strategy.
RTX Corp
RTX plans to hire 1,000 more employees in India by 2027, targeting engineers and data scientists to support global operations.
Southwest Airlines Co
The FAA’s review of Southwest found no significant safety issues, concluding an investigation triggered by operational concerns.
UnitedHealth Group Inc
The murder suspect of UnitedHealth executive Brian Thompson faces extradition to New York, charged with terrorism-related murder.
United States Steel Corp
Nippon Steel’s $14.9 billion bid for U.S. Steel faces opposition due to national security concerns. The matter could be referred to President Biden.
Vertex Pharmaceuticals Inc
Vertex’s non-opioid pain drug met study goals but showed no significant pain reduction compared to placebo. Shares declined premarket.
Vizsla Silver Corp
National Bank of Canada initiated coverage with an outperform rating, citing progress on the Panuco mine project.
Warner Bros Discovery Inc
Channing Dungey, CEO of Warner Bros Television Group, will lead U.S. Networks, supported by Brett Paul as COO, focusing on digital strategy.
Zillow Group Inc
Jefferies raised its target price for Zillow’s stock to $105 from $92, anticipating home sales recovery to bolster revenue.
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