Global Markets
Canadian Markets
Canadian markets dropped as oil fell 1%, and conversely gold prices rose. Data released today showed Canada has slipped in global tax competitiveness rankings. This decline follows the Canadian government’s decision to raise the capital gains inclusion rate this year, which can deter investment and affect economic growth. Furthermore, the government announced plans to cut immigration as economic conditions slow.
American Markets
American markets traded in a mixed performance, as the Dow Jones Industrial Average fell, reflecting concerns about broader economic indicators, while the Nasdaq Composite surged, buoyed by an optimistic forecast from Tesla following a positive earnings report. Tesla’s results not only exceeded expectations but also indicated strong demand for its products, contributing to investor confidence in the tech sector.
European Markets
European stocks climbed, largely driven by a series of strong earnings reports from major companies, including Unilever and Evolution. These results improved investor sentiment amidst concerns over economic slowdowns. Markets are also digesting stalling manufacturing data, which raises questions about the European Central Bank’s (ECB) interest rate policy. The mixed signals from economic indicators make the outlook for rate cuts uncertain, as policymakers weigh inflation against growth. UK markets rose as the Bank of England stated they might have cut rates too soon as inflation is still a significant risk.
Chinese Markets
Chinese markets finished lower as Investors are cautious ahead of the upcoming U.S. presidential election, which could introduce volatility and uncertainty in global markets. The potential policy shifts depending on the election outcome may affect trade relations and economic policies that are vital to China.
Japanese Markets
Japanese stocks ended slightly higher, breaking a three-session losing streak. However, traders remain anxious about political stability in the country, which is impacting investor confidence and economic reforms.
Corporate Stock News
- Abbott Laboratories: A judge ruled that Abbott and Reckitt’s Mead Johnson cannot use a government report in their defense against a lawsuit concerning baby formula linked to a child’s illness.
- American Airlines Group Inc: The airline raised its annual profit forecast due to strong travel demand, now predicting adjusted earnings per share of $1.35 to $1.60, while reporting a net loss of $149 million.
- Apple Inc: CEO Tim Cook announced plans to increase investment in China to strengthen supply chain development.
- Barclays PLC: Reported an 18% rise in third-quarter profit to £2.2 billion, driven by investment banking and upgraded interest income forecasts.
- Boeing Co: Factory workers rejected a contract proposal and will continue their strike, seeking a 40% wage increase instead of the offered 35%.
- Coca-Cola Co: JPMorgan lowered its price target, anticipating declines in case volumes.
- Canadian Pacific Kansas City Ltd: ATB Capital Markets raised its target price to C$134 following revised profit estimates.
- Dow Inc: Announced a review of European assets while beating profit estimates driven by demand for industrial products.
- General Dynamics Corp: RBC raised its price target following strong third-quarter earnings.
- Globe Life Inc: Reported an 18% increase in third-quarter profit to $303 million, bolstered by higher premiums and investment returns.
- Harley-Davidson Inc: Trimmed its revenue forecast due to high inflation impacting motorcycle demand, reporting a net income of $119 million.
- Hasbro Inc: Sales dropped in the third quarter, with revenue at $1.28 billion, and the company expects a decline in full-year revenue of 12% to 14%.
- IBM: Missed third-quarter revenue expectations of $14.97 billion due to consulting weakness, but adjusted profit beat estimates at $2.30 per share.
- Intel Corp: The EU Court of Justice ruled in favor of Intel, dismissing an appeal related to a fine for anti-competitive practices.
- International Flavors & Fragrances Inc: Czechoslovak Group will acquire IFF’s nitrocellulose business in Germany, expected to close in the first half of 2025.
- KKR & CO Inc: Reported a 58% increase in adjusted net income to $1.2 billion, driven by strong asset management performance.
- Lam Research Corp: Forecasted revenue above expectations for the next quarter due to increased demand for semiconductor manufacturing equipment.
- Mattel Inc: Exceeded quarterly profit estimates but lowered its annual sales forecast amid weak toy demand.
- Molina Healthcare Inc: Surpassed third-quarter profit estimates with an adjusted profit of $6.01 per share.
- Nasdaq Inc: Reported increased profit to $306 million due to strong demand for financial technology products.
- Newmont Corporation: Missed profit expectations despite a 29.2% increase in gold production, reporting adjusted profit of 81 cents per share.
- Nvidia Corp: Expanded partnerships in India and launched a new AI model for Hindi.
- O’Reilly Automotive Inc: Tightened full-year profit expectations, reporting a quarterly profit per share of $11.41.
- Raymond James Financial Inc: Reported a near 36% increase in adjusted profit, driven by strong capital markets and wealth management performance.
- Rogers Communications Inc: Fell short of market expectations for wireless subscriber additions, gaining only 101,000 subscribers, but reported a turnaround to C$526 million net income.
- Southwest Airlines Co: Achieved a surprise third-quarter profit of $89 million, benefiting from increased pricing and demand.
- Spirit AeroSystems Holdings Inc: Posted a deeper quarterly loss of $217 million, citing cash depletion due to a strike at Boeing.
- TFI International Inc: Target price lowered to $137 from $149 after third-quarter earnings missed expectations.
- Tesla Inc: Stock surged following a forecast of 20%-30% sales growth for next year, with adjusted profit of 72 cents per share.
- Teradyne Inc: Forecasted strong fourth-quarter profit and revenue, with third-quarter revenue rising to $737 million.
- Tyler Technologies Inc: Raised its full-year revenue and profit forecast, reporting third-quarter profit per share of $2.52.
- Unilever PLC: Reported better-than-expected quarterly sales growth, achieving a 4.5% rise in underlying sales.
- UPS: Surpassed quarterly profit estimates and raised its full-year adjusted operating margin forecast.
- United Rentals Inc: Missed third-quarter profit estimates but saw a 24% revenue increase in its specialty rentals segment.
- Valero Energy Corp: Reported an 86% drop in quarterly profit due to falling refining margins but still beat Wall Street expectations.
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