Macro Market View

Canadian Markets

Canada’s TSX traded Tuesday in a volatile session, as energy and mining stocks were buoyed by a 4% surge in oil prices, which rose as a result of escalating troubles in the middle east. Gold also traded higher as a risk off environment emerged.

American Markets

American markets dropped significantly following the release of economic data indicating a surprising increase in job openings for August, suggesting a tighter labor market that could prompt the Federal Reserve adjust policy. U.S. manufacturing remained steady in September, which, while stabilizing, contributed to concerns about inflation and the Fed’s potential monetary policy adjustments. The combination of these factors led to a sell-off in equities, as investors recalibrated their expectations for economic growth and interest rates.

European Markets

European stocks edged higher, supported by favorable euro zone inflation data that strengthened the argument for quicker rate cuts by the European Central Bank (ECB). This shift in monetary policy outlook is seen as a way to stimulate economic activity amid persistent inflationary pressures, which have weighed on growth in the region. UK markets were half a percent higher on energy and mining stocks, while the pound’s drop also supported markets.

Japanese Markets

Japan’s Nikkei index closed nearly 2% higher, driven primarily by gains in defense stocks. The recent global focus on security and defense spending has led to increased investor interest in this sector, reflecting broader concerns over geopolitical stability, particularly in light of tensions in regions such as the Middle East.

Corporate Stock News

23andMe Holding Co: CEO Anne Wojcicki will no longer consider third-party takeover proposals, stating that taking the company private is the best path forward.

Abu Dhabi National Oil Company: Likely to announce a $13 billion-plus deal for Germany’s Covestro soon, barring any unexpected issues.

Alphabet Inc: Serve Robotics will partner with Alphabet-owned Wing Aviation to use drones for food delivery, expanding operational range.

Amazon.com Inc: Won partial dismissal of a FTC lawsuit alleging illegal monopolies; further claims can still be pursued.

Amgen Inc: Must face a class action lawsuit over allegedly delaying disclosure of a potential $10.7 billion IRS tax liability.

Apple Inc: Requested a judge to narrow a decision affecting its App Store, citing recent legal developments supporting its position.

Berkshire Hathaway Inc: BNSF Railway will resume issuing permits for grain shuttles to Mexico, aiming to ease agricultural export delays.

Boeing Co: Considering raising at least $10 billion by selling new stock amid heavy debt and operational losses.

Capri Holdings Ltd & Tapestry Inc: Antitrust trial over Tapestry’s $8.5 billion bid for Capri concluded; both sides presented competitive market arguments.

CVS Health Corp: Exploring options including a potential split of its retail and insurance units due to pressure from investors.

Eversource Energy: Expects a net loss of $520 million from its offshore wind business divestiture in Q3.

Exxon Mobil Corp: Deal to sell Nigerian onshore assets to Seplat Energy expected to be approved soon, pending regulatory clearance.

Haleon PLC & Pfizer Inc: Pfizer sold a stake in Haleon for approximately $3.26 billion, reducing its ownership from 22.6% to 15%. Haleon will buy back some shares.

Hertz Global Holdings Inc: Reached a tentative agreement with Teamsters, averting a potential strike by nearly 3,000 members.

International Business Machines Corporation & Take-Two Interactive Software Inc: IBM sued Take-Two for allegedly violating patent rights related to internet technology.

KB Home: CFO Jeff Kaminski will retire in early 2025 after more than 14 years in the role.

Meta Platforms Inc: Expanding investment in AI innovation in Vietnam, including production of mixed reality headsets starting in 2025.

Microsoft Corp: Classified as a “company with paramount cross-market significance” by Germany’s competition watchdog.

Nokia Oyj: Recorded a €514 million impairment loss after selling its submarine networks business, but impact on financial outlook remains unchanged.

PG&E Corp: Cut power to over 9,000 customers in Northern California due to heightened wildfire risks from high winds.

PepsiCo Inc: In advanced talks to acquire tortilla-chip maker Siete Foods for over $1 billion, amidst competitive sale interest.

Royal Bank of Canada: Barred from confidential briefings by Australia’s central bank after a leak from a closed-door meeting.

Sony Group Corp: CEO Tony Vinciquerra will step down in early 2025, succeeded by COO Ravi Ahuja.

Stellantis NC: Extended production suspension of Fiat 500 electric cars until November 1 due to poor demand; recalling 194,000 hybrid SUVs for fire risks.

TPG Inc: Partners Group is selling German metering firm Techem for $7.46 billion to TPG, with the deal expected to close in the first half of next year.

Tesla Inc: Lawsuit against the company for allegedly defrauding shareholders over self-driving technology was dismissed; increased market share in Sweden reported.

Ternium SA: Expects a favorable ruling in a Brazilian court appeal against CSN regarding a 2011 purchase of Usiminas stake.

Vinciquerra (Sony Group Corp): Will remain in an advisory role until the end of December 2025 after stepping down as CEO of Sony Pictures Entertainment.

Analyst News

Upgrades

• Alcoa Corp (AA): Upgraded from Neutral to Buy by Bank of America; Target price raised to $52 (current price: $40.91).
• Apple Inc (AAPL): Maintained Buy rating; Target price $250 (current price: $228.32).
• ACADIA Pharmaceuticals (ACAD): Buy rating maintained; Target price $31 (current price: $27.37).
• Acm Research Inc (ACMR): Reiterated Buy with a Target price of $25 (current price: $29.67).
• Agree Realty Corporation (ADC): Maintained Overweight rating; Target price $80 (current price: $71.03).

Downgrades

• Antero Resources Corp (AR): Downgraded from Overweight to Underweight; Target price $25 (current price: $34.15).

Strong Buy Ratings

• Adverum Biotechnologies (ADVM): Target price $28 (current price: $23.40); significant upside potential.
• AEON Biopharma (AEON): Maintained Buy rating; Target price $5 (current price: $7.67).
• Aura Biosciences Inc (AURA): Target price $20 (current price: $20.75).

Notable Mentions

• Alibaba Group (BABA): Buy rating maintained; Target price $134 (current price: $108.08).
• Boeing (BA): Maintained Buy; Target price $200 (current price: $224.45).

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