Global Markets
Canada
Canada’s TSX rose sharply as prices for crude oil and metals increased, reflecting positive movements in commodity markets. The TSX also took positive cues from the positive economic data released in the USA.
USA
American stock markets surged in response to encouraging retail data for July, which indicated robust consumer spending. Jobless claims came in lower than anticipated, further boosting investor confidence. Walmart also saw a significant rise in its stock price following a positive earnings reports.
Europe
In Europe, shares advanced due to mild U.S. inflation data that bolstered expectations of a potential rate cut by the Federal Reserve in September. UK Stocks also rose, as Britain’s economy grew by 0.6% in the three months to June, extending its recovery from recession and aligning with forecasts. This followed a 0.7% increase in the first quarter of 2024. Despite the overall growth, June saw flat monthly GDP due to poor weather impacting retail spending.
Japan
In Japan, the Nikkei index climbed after the country reported better-than-expected economic growth for the June quarter, signaling a more resilient economy than previously thought. Chinese markets also rose on the overflow of global investor optimism, regardless of the impending economic continuous decline.
Currencies
The British pound strengthened against the U.S. dollar as the UK economy grew as anticipated in the second quarter, providing further support for the currency and reflecting economic stability.
Corporate Stock News
- Alibaba Group Holding Ltd: Missed first-quarter revenue expectations due to weak domestic e-commerce sales, reporting 243.24 billion yuan in revenue compared to an estimate of 249.05 billion yuan. Net income fell to 24.27 billion yuan from 34.33 billion yuan a year earlier.
- Alphabet Inc: A U.S. judge plans to order Google to offer more app download options for Android users. Alphabet also expanded its AI-generated summaries for search queries to six new countries and is adding hyperlinks to its AI answers.
- Apple Inc, Berkshire Hathaway Inc, Heico Corp & Ulta Beauty Inc: Berkshire Hathaway acquired new stakes in Ulta Beauty and Heico while significantly reducing its Apple holdings, selling about 390 million shares of Apple.
- Alaska Air Group Inc: Flight attendants rejected a tentative labor agreement offering a 32% pay increase and legal boarding pay, leading to further negotiations.
- AstraZeneca: Successfully overturned a jury’s decision requiring it to pay $107.5 million for patent infringement related to cancer drugs.
- Boeing Co: The U.S. Justice Department supports a plea deal requiring Boeing to pay $487.2 million for charges related to the 737 MAX crashes.
- Brookfield Corp: William Ackman’s Pershing Square Capital Management built new stakes in Brookfield and Nike, while reducing its Alphabet holdings.
- Chipotle Mexican Grill Inc: Faced a drop in stock value due to CEO Brian Niccol’s departure but investors are optimistic about interim CEO Scott Boatwright’s leadership.
- Cisco Systems Inc: Announced a 7% global headcount reduction and pre-tax restructuring charges up to $1 billion, with anticipated first-quarter revenue of $13.65 to $13.85 billion.
- Chevron Corp: Settled with Richmond City Council for $550 million over 10 years, avoiding a proposed new tax on its refinery.
- CVS Health Corp: Sachem Head Capital Management acquired a new stake in CVS during a period of stock price decline.
- Deere & Co: Beat third-quarter profit expectations despite a 17% decrease in revenue, as strong pricing and cost controls offset sluggish equipment demand.
- Dril-Quip Inc: Gamco Asset Management plans to vote against the merger with Innovex Downhole Solutions, arguing the standalone company is more valuable.
- Goldman Sachs & Morgan Stanley: Invested over $600 million in spot bitcoin ETFs during the second quarter.
- Incyte Corp & Syndax Pharmaceuticals Inc: FDA approved Incyte’s Niktimvo for chronic graft-versus-host disease, co-developed with Syndax.
- Intel Corp: SoftBank abandoned plans to develop an AI chip with Intel due to unmet requirements, focusing instead on discussions with TSMC.
- NextDecade Corp: Will appeal a court ruling overturning federal approval for its $18 billion Rio Grande LNG project, risking delays and permit issues.
- Nike Inc: William Ackman’s Pershing Square Capital Management purchased 3 million shares of Nike and reduced Alphabet holdings.
- Starbucks Corp: Brian Niccol, the incoming CEO, will receive significant stock awards and a cash bonus upon leaving Chipotle Mexican Grill.
- T-Mobile US Inc: Fined $60 million by CFIUS for failing to prevent unauthorized data access, marking its largest penalty ever.
- Tapestry Inc: Exceeded fourth-quarter revenue expectations, driven by strong demand for Tabby handbags despite challenges in other brands.
- Trump Media & Technology Group Corp: Significant institutional investments were made in the company ahead of its inclusion in Russell indexes.
- Walmart Inc: Raised its annual profit forecast due to strong consumer demand and increased ad sales, with adjusted profit per share expectations between $2.35 and $2.43.
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