Market Recap & Analysis: January 10th, 2025

Global Market Update

Canadian Markets

Canada’s main stock index, the S&P/TSX Composite, ended the trading day over one percent lower, weighed down by concerns surrounding monetary policy after the release of a surprisingly robust jobs report. The Canadian economy added an impressive 91,000 jobs in the latest reporting period, far exceeding the forecasted increase of 25,000. This strong labor market performance heightened fears that the Bank of Canada might shift its monetary policy.

American Markets

U.S. stock indexes also registered steep losses, with all major indices declining by over 1.5 percent. The sell-off was driven by renewed speculation that the Federal Reserve might not pursue further rate cuts, following robust economic data that suggested resilience in the labor market and heightened inflation risks. Concerns over the reemergence of inflationary pressures further exacerbated investor caution, leading to a broad-based decline across sectors. A strong rise in treasury yields rise, stock falls pressured

European Markets

European markets were also red across the board as data showed Germany’s trade surplus with the USA was at a high point, raising concerns of looming tariffs from the new Trump Administration.

In the UK, surging bond yields added to the pressure on equities, as investors grappled with political uncertainty. The turbulence was fueled by the meteoric rise of the Reform Party in recent polls, overtaking the Conservative Party and tying with the Labour Party. This surge reflects growing public dissatisfaction with the government over a combination of factors, including tax hikes, ongoing immigration concerns, and the exodus of wealthy individuals. The political instability has intensified concerns over economic policy direction, weighing heavily on investor sentiment.

Asian Markets

Japan’s Nikkei index declined, dragged down by a sharp drop in the shares of Fast Retailing, the operator of the Uniqlo clothing chain. The retailer’s disappointing earnings report dampened market confidence and led to a sell-off in its stock.

Chinese equities also faced downward pressure as traders remained cautious, awaiting concrete signs of new stimulus measures from Beijing. This hesitation underscores broader uncertainties in the Chinese economy, where policymakers are expected to act decisively to counter slowing growth, though no major announcements have been forthcoming.

Corporate Stock News

Advanced Micro Devices Inc & NVIDIA Corp

• The Dutch government is in discussions with U.S. chip firms about supplying hardware and knowledge for a potential AI facility.
• Nvidia criticized potential Biden administration restrictions on AI chip exports, citing harm to the U.S. economy.

Air Products and Chemicals Inc

• Proxy advisory firm Glass Lewis recommended electing all four of Mantle Ridge’s board candidates in a January 23 vote.

Airbus

• Delivered 766 jets in 2024, maintaining leadership in the jetmaking industry for the sixth consecutive year.

Alphabet Inc

• Debate over amicus briefs in an antitrust case involving Epic Games and Google highlighted concerns about financial disclosure.

Apollo Global Management Inc

• Considering a $9.5 billion investment in a management buyout of Japan’s Seven & i Holdings.

Apple Inc

• Apple clarified it does not sell Siri data after settling a $95 million lawsuit over improper recording and use of user conversations.

Aritzia Inc

• Canaccord Genuity raised the target price to C$70 from C$62 due to strong Q3 earnings and favorable Q4 guidance.

Arthur J. Gallagher & Co

• KBW lowered the target price to $286 from $292, citing slowing growth in written commercial and specialty premiums.

BlackBerry Ltd

• RBC raised the target price on Blackberry to $4 from $3.25 following improved investor sentiment post-Cylance sale.

BlackRock Inc

• Exited the Net Zero Asset Managers Initiative, citing client priorities.
• Requested more time from the FDIC to finalize oversight agreements.

Capri Holdings Ltd

• Prada is reportedly exploring purchasing Versace as part of Capri’s strategic options review.

Certara Inc

• Baird reduced its target price to $12 from $13, citing intensified competition and challenges in the regulatory service business.

Chevron Corp & Shell Plc

• Started production at the Whale offshore facility in the Gulf of Mexico, with an expected output of 100,000 boepd.

Clear Channel Outdoor Holdings Inc

• Announced the sale of its Europe-North business to Bauer Media Group for $625 million to focus on U.S. operations.

Constellation Energy Corp

• Agreed to acquire Calpine Corp in a $26.6 billion cash-and-stock deal.

Delta Air Lines Inc

• Forecasted 2025 as its most profitable year, with strong Q4 results and robust 2025 earnings guidance.

Diageo Plc

• Accused by Indian authorities of suspicious payments to a politician’s firm.
• Concerns over new management and weight loss drugs led a prominent fund to divest.

Fox Corp

• A New York court ruled that Smartmatic’s defamation claim over 2020 election coverage could proceed.

Goldman Sachs Group Inc

• Appointed Marco Paesotto and Edoardo Rava as co-heads of Investment Banking in Italy.

IGM Biosciences Inc

• RBC cut the target price to $1.5 from $20 after discontinuing its bispecific autoimmune clinical pipeline.

Jefferies Financial Group Inc

• Reported Q4 profit tripled as investment banking revenue surged 73% to $986.8 million.

Kroger Co

• Settled an opioid lawsuit with Kentucky for $110 million, higher than the broader settlement expectation of $66.6 million.

Liberty Media Corp

• Named Derek Chang as CEO of Formula One, effective February 1, 2025.

Lockheed Martin Corp

• Delivered 110 F-35 fighter jets in 2024, meeting its upper target range.

Macy’s Inc

• Macy’s announced 66 store closures as part of a turnaround strategy, focusing investments in 350 locations through 2026.

Meta Platforms Inc

• Alleged to have used pirated books to train AI systems, as authors filed a court complaint based on internal Meta documents.

Netflix Inc

• JPMorgan lowered the target price to $1,000 from $1,010 due to concerns about 2025 revenue growth.

Pfizer Inc

• Announced promising trial results for an experimental bladder cancer treatment, with plans to present data at medical meetings.

Ryanair Holdings Plc

• Plans to operate a full summer schedule from Tel Aviv, contingent on the reopening of Terminal 1 at Ben Gurion Airport.
• Adding two aircraft to regional German airports, offering 800,000 more seats.

Southwest Airlines Co

• CFO Tammy Romo and Chief Administration Officer Linda Rutherford will retire in April 2025.

Taiwan Semiconductor Manufacturing Co Ltd (TSMC)

• Reported Q4 2024 revenue of $26.36 billion, driven by AI demand. December revenue rose 57.8% year-on-year to T$278.16 billion.

Talen Energy Corp

• Vanguard Group increased its stake to 10.4%, purchasing over 4 million additional shares.

Tesla Inc

Tesla Launched a new Model Y version in China with a 5.4% price increase and a March delivery timeline.

• Recalled 239,000 vehicles over a rear-view camera issue, resolved via an over-the-air software update.

TotalEnergies SE

• Agreed to pay $5 million to settle FERC claims of natural gas market manipulation from 2009–2012.

Ubisoft

• Postponed the release of its new Assassin’s Creed game to March 20 from February 14.

UBS Group AG

• Expected to pay hundreds of millions of dollars to settle Credit Suisse’s violation of a U.S. tax agreement.

UnitedHealth Group Inc

• Shareholders requested a report on the costs and public health impact of practices limiting or delaying healthcare access.

Walgreens Boots Alliance Inc

• Exceeded Q1 earnings expectations, reaffirmed its 2025 profit forecast, and reported higher U.S. retail pharmacy sales.

Western Digital Corp

• Ordered to pay over $237 million in interest on top of $316 million in damages, raising the total award to $552.7 million.