Global Markets
Canadian Markets
Canada’s main stock index increased moderately as a stronger-than-expected jobs report was released. The data revealed that Canada’s economy gained 51,000 positions, surpassing analysts’ forecast of 25,000. However, the unemployment rate rose to 6.8% due to the rapid population growth outpacing job creation. Canada’s population growth is running at three times the pace of job growth, which puts pressure on the labor market and contributes to the rising unemployment rate despite the overall positive job creation figures.
This employment data is likely to impact the Bank of Canada’s policy decisions, as it provides a clearer picture of economic health. Investors will be paying close attention to how the Bank responds to the job gains and the rising unemployment rate, which may influence the pace of interest rate cuts in the near term.
American Markets
American markets traded mixed again, as data from the jobs reported showed 227,000 new jobs were created in November against 220,000 expected by economists. As a result the unemployment rate rose to 4.2% from the 4.1% from October.
European Markets
European stocks moved higher as investors continued to assess political concerns in France, but still managed to end the day with gains. Volkswagen continues be in focus as the company cuts jobs, factories and costs to stem the losses.
Japanese Markets
In Japan, the Nikkei index slipped, with investors locking in profits following four consecutive days of gains. While the overall market sentiment remains positive, short-term corrections are common after periods of strong performance.
Corporate Stock News
- Barrick Gold Corp: Dealmaker Ian Hannam is suing Randgold Resources for up to $18 million, claiming he is owed compensation for his work on the 2018 acquisition by Barrick Gold. The lawsuit centers on an agreement where Hannam’s advisory boutique, Hannam & Partners, was promised a minimum of $10 million for facilitating the deal. Hannam asked for $18 million after the $18 billion acquisition but was rebuffed.
- Bank of Montreal: CIBC raised its target price for Bank of Montreal to C$150 from C$134, citing declining credit losses, accelerating loan growth, and stronger capital markets earnings.
- Boeing Co: The Federal Aviation Administration (FAA) noted Boeing has not resumed 737 MAX production post-machinists’ strike, but expects to restart later this month. The FAA is focused on workforce training and supply chain stabilization.
- BP Plc: BP is seeking buyers for up to a 49% stake in its U.S. natural gas pipeline network, potentially raising up to $3 billion. This sale is part of CEO Murray Auchincloss’s strategy to reduce debt levels.
- Canadian Imperial Bank of Commerce: Jefferies raised its target price for CIBC to C$104 from C$103 after the bank’s fourth-quarter profit exceeded analysts’ expectations.
- Chevron Corp & Hess Corp: Chevron announced up to $1.5 billion in charges for restructuring, asset impairments, and property sales costs in Q4, including severance pay for job cuts and relocations. Chevron also plans to cut 2025 project spending by $2 billion.
- Citigroup Inc: Citigroup promoted 344 executives globally to managing director roles, one of the largest cohorts in the firm’s history. Separately, Citi Handlowy in Poland approved a new strategy to achieve a return on equity exceeding 15% by 2027.
- Cooper Companies Inc: Cooper Companies forecast annual revenue below Wall Street expectations due to softer demand for contact lenses, sending shares lower after reporting quarterly revenue of $1.02 billion (slightly below estimates).
- DoorDash Inc: RBC raised its target price for DoorDash to $215 from $175, citing the company’s focus on balancing growth and profitability, alongside potential M&A activities.
- Hewlett Packard Enterprise Co: Hewlett Packard Enterprise exceeded Wall Street expectations for Q4, reporting strong demand for servers used in AI applications. The company’s Q4 revenue was $8.46 billion, surpassing estimates.
- HSBC: HSBC announced the promotion of Lisa McGeough as the new CEO for the U.S. operations starting next year.
- Lululemon Athletica Inc: Lululemon raised its full-year revenue forecast, driven by strong demand in the U.S. and international markets. JPMorgan increased its target price for Lululemon to $425 from $338 after the company posted solid third-quarter growth.
- Lockheed Martin Corp: The U.S. Air Force deferred decisions related to the Next Generation Air Dominance (NGAD) fighter jet program, affecting Lockheed Martin, Boeing, and Northrop Grumman, which are competing for the contract.
- Northrop Grumman Corp: Similar to Lockheed Martin, Northrop Grumman is impacted by the U.S. Air Force’s delay of the NGAD fighter jet program, with contracts extended to allow more time for design updates.
- Shift4 Payments Inc: CEO Jared Isaacman, a private astronaut and close ally of SpaceX, is playing a central role in the burgeoning commercial space industry, which aims to usher in an era of spacefaring civilization.
- Stellantis: Stellantis signed an agreement with Zeta Energy to develop cost-effective lithium-sulfur batteries for electric vehicles by 2030.
- Teva Pharmaceutical Industries Ltd: Teva announced it will transfer ownership of its Japanese generics business to JKI, with the divestiture expected to be completed by April 1, 2025.
- Toronto-Dominion Bank: CIBC lowered its target price for Toronto-Dominion Bank to C$90 from C$93, following the bank’s warning of a challenging 2025 and the suspension of its medium-term earnings forecast.
- UnitedHealth Group Inc: The search for a masked assailant who killed a UnitedHealth executive in Manhattan continues. Meanwhile, Oppenheimer raised its target price for UnitedHealth to $640 from $610, citing its strong growth profile.
- Ulta Beauty Inc: Ulta Beauty raised its annual profit forecast, signaling stronger demand for perfumes and makeup during the holiday season. The company also slightly increased its annual sales forecast. JPMorgan raised its target price for Ulta to $480 from $472.
- VSE Corp: RBC raised its target price for VSE Corp to $135 from $125 after the company completed the acquisition of Kellstrom Aerospace.
- Volkswagen: Volkswagen workers will go on extended strikes in response to a dispute over layoffs and factory closures, marking the first such closures in Germany for the automaker.
- WEC Energy Group Inc: WEC Energy issued higher earnings estimates for 2025 and announced a 6.9% dividend increase, with projected earnings per share of $5.17 to $5.27.
- Zeta Energy: Zeta Energy partnered with Stellantis to develop affordable lithium-sulfur batteries for electric vehicles, aiming for commercialization by 2030.
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.
