Global Markets

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North American Stock Market:

• Canada: The main stock index in Canada remained relatively stable following a previous session dominated by a tech-driven rally, which propelled the index to a 22-month high. However, there was some downward pressure due to a slight decrease in crude oil prices.
• United States: Wall Street experienced a pause after a remarkable rally driven by advancements in artificial intelligence. The previous session saw significant gains fueled by optimism surrounding AI technology.
• Mexico: No specific updates were provided for the Mexican stock market in the provided news excerpt.

European Stock Market:

• European shares witnessed slight gains amid volatile trading conditions. While heavyweight banks saw gains following Standard Chartered’s strong earnings report, the telecom sector experienced a decline, offsetting some of the overall gains.

Asian Stock Market:

• China: Shares in China closed higher, propelled by measures implemented by authorities to stimulate economic growth and bolster market confidence.

Currency and Commodity Markets:

• The U.S. dollar was poised to register a weekly decline for the first time in 2024, indicating some weakness in the currency.
• Gold prices remained relatively stable, with little change reported.

Individual Companies and Sectors:

• Nvidia: Experienced a record-breaking increase in stock market value, adding $277 billion in a single day following an earnings report that surpassed expectations. The rally was fueled by optimism surrounding artificial intelligence.
• Warner Bros Discovery: Fell short of revenue estimates for the quarter due to factors such as the Hollywood strikes and a weak advertising market.
• Tesla: Announced a product recall in China affecting 8,700 vehicles to address software issues aimed at reducing the risk of accidents.
• Bank of Montreal: Made significant appointments in its private wealth unit to strengthen its offerings in this area.
• Ameren Corp: Reported a decline in fourth-quarter profit due to lower demand for electricity and natural gas but forecasted earnings for 2024 above analysts’ estimates.
• Block Inc: Witnessed a surge in shares after forecasting adjusted core earnings for the current quarter above Wall Street estimates.
• Booking Holdings Inc: Beat analysts’ expectations for fourth-quarter profit, driven by a strong recovery in Asian markets.
• Carvana Co: Reported its first-ever annual profit, aided by debt reduction, and forecasted a significantly higher adjusted core profit for the first quarter.
• Copart Inc: Missed second-quarter revenue estimates due to lower vehicle sales but saw an increase in profit per share compared to the previous year.
• Coterra Energy Inc: Forecasted a decline in natural gas production for 2024 after reporting quarterly profit below Wall Street estimates.
• Edison International: Beat Wall Street estimates for fourth-quarter profit, driven by higher electricity rates.
• EOG Resources Inc: Reported a fall in fourth-quarter profit but forecasted higher output for 2024.
• Insulet Corp: Forecasted full-year revenue growth below estimates but posted a better-than-expected profit for the fourth quarter.
• Intuit Inc: Forecasted third-quarter revenue growth above Wall Street estimates, driven by increased demand for its AI-enabled financial management tools.
• Live Nation Entertainment Inc: Beat market estimates for fourth-quarter revenue, benefiting from strong concert demand during the holiday season.
• MercadoLibre Inc: Reported a fourth-quarter net profit, with results flat versus the year-ago period due to higher sales offset by a tax hit.
• MP Materials Corp: Reported a fourth-quarter loss due to slipping prices for strategic minerals and rising production costs.
• Vale SA: Reported a drop in fourth-quarter net profit, missing analyst expectations due to higher provisions related to its Samarco joint venture.
• VICI Properties Inc: Forecasted 2024 adjusted funds from operation (FFO) below Wall Street estimates due to high interest rates.
• Biogen Inc: Received a recommendation for marketing authorization from Europe’s medicines regulator for its drug for amyotrophic lateral sclerosis (ALS).
• BP Plc: A man pleaded guilty to insider trading related to BP’s planned purchase of truck stop operator TravelCenters of America.
• Caterpillar Inc & Deere & Co: Caterpillar was ordered to pay $12.9 million in damages for violating Wirtgen’s patent rights in road-building technology.
• Discover Financial Services & Capital One Financial Corp: Both companies will pay a termination fee of $1.38 billion if their merger falls through under any circumstance.
• General Motors Co: Cruise, its self-driving car unit, is preparing to resume testing its robotaxis on public roads with safety drivers in the coming weeks.
• iFit Health & Fitness Inc: Reached an agreement to resolve a lawsuit accusing it of misusing Dish streaming-video technology.
• JPMorgan Chase & Co: CEO Jamie Dimon sold about $150 million of his shares in the bank.
• Mastercard Inc: Is facing a lawsuit accusing it of stymying efforts to build a “universal” digital wallet for consumers.
• Meta Platforms Inc: Its Oversight Board announced that Threads will be included under its purview, allowing users to appeal the company’s content moderation decisions.
• Stellantis NV: CEO Carlos Tavares received a 56% boost in total compensation in 2023.
• Teck Resources Ltd: Plans to close the sale of its steel-making coal unit to Glencore no later than the third quarter of 2024.
• Travere Therapeutics Inc: Won an endorsement for approval from the European Union’s drug regulator for its drug Filspari.

Global Electric Vehicle Slowdown Sparks Industry Concerns

A worldwide deceleration in electric vehicle (EV) demand is reverberating across the automotive industry, prompting a wave of strategic adjustments, layoffs, and production cutbacks. This slowdown, coupled with ongoing economic uncertainties, threatens to impede the transition away from traditional gasoline-powered combustion engines, casting a shadow over the future of sustainable mobility.

As EV manufacturers grapple with dwindling consumer interest and supply chain disruptions, the repercussions are felt throughout the automotive ecosystem. Job losses, changes in strategic direction, and scaled-back production schedules underscore the immediate challenges facing the industry. Despite long-term optimism about the potential of electric vehicles to revolutionize transportation and reduce carbon emissions, the current landscape highlights the complexities of market dynamics and the resilience required to navigate shifting demand patterns.

Singapore Airshow Highlights Defense Innovation Amidst Geopolitical Tensions

Against the backdrop of escalating geopolitical tensions, the Singapore Airshow showcased the latest advancements in defense technology, with a particular focus on systems capable of countering ballistic missiles and unmanned aerial vehicles (UAVs). However, notable by its absence was any presence from Russia, signaling strained diplomatic relations and underscoring the geopolitical complexities shaping global security dynamics. While discussions surrounding defense cooperation and procurement were limited, the event underscored the growing importance of technological innovation in addressing evolving security threats.

European Corporate Updates Reflect Mixed Performance

In Europe, corporate updates offer a mixed picture of economic resilience and strategic realignment. Standard Chartered PLC reported a robust 18% increase in pre-tax profit for 2023, aligning with market expectations. The bank’s decision to initiate a $1 billion share buyback and elevate dividend payouts reflects confidence in its financial position and commitment to shareholder value.

Meanwhile, Volvo Cars announced plans to distribute a significant portion of its stake in Swedish electric vehicle manufacturer Polestar Automotive Holding to its shareholders. This strategic move underscores Volvo’s commitment to leveraging its investments in the rapidly expanding EV market while unlocking value for its stakeholders.

Stellantis, the Italian-American automaker behind brands such as Chrysler and Fiat, faced scrutiny over CEO Carlos Tavares’ substantial 56% increase in total compensation for 2023, reaching 36.49 million euros. The uptick in executive pay amidst broader industry challenges raises questions about corporate governance and shareholder accountability, particularly in light of economic headwinds and shifting consumer preferences.

Top Analyst Ratings

• Block Inc: KBW raised the target price to $78 from $74 due to better-than-expected fourth-quarter results and increased 2024 full-year profit guidance.
• Booking Holdings Inc: Evercore ISI decreased the target price to $3800 from $3900 following weak first-quarter and full-year outlook.
• Insulet Corp: JPMorgan increased the target price to $225 from $190 based on strong fourth-quarter results and expectations of higher sales and operating leverage in 2024.
• Intuit Inc: JPMorgan raised the target price to $585 from $560 as the company met its second-quarter guidance and reiterated 2024 full-year guidance.
• Penumbra Inc: Truist Securities reduced the target price to $290 from $300 after the company missed fourth-quarter revenue expectations.
• Cascades Inc: CIBC lowered the target price to C$14 from C$17 due to weaker-than-expected performance in containerboard and weak first-quarter guidance.
• TC Energy Corp: JPMorgan increased the target price to C$60 from C$57 after the company beat fourth-quarter profit estimates and discussed a potential asset sale in the first half of the year.

STA Research

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