Global Markets

U.S. stocks received a boost primarily attributed to the positive earnings reports from major companies like Apple and Amgen. This optimism was prevalent in the market atmosphere as investors awaited significant U.S. labor data. Concurrently, the U.S. dollar experienced a slight decline, reaching a three-week low, while gold prices remained stable but were on track for a second consecutive weekly decrease. The Japanese yen, however, demonstrated remarkable strength, poised to achieve its most substantial weekly gain in 16 months, driven by suspicions of intervention in the currency markets.

In Europe, the situation was equally dynamic, with British blue-chip stocks reaching record highs, largely fueled by speculation surrounding a potential offer from Glencore for Anglo-American. Additionally, positive bank earnings contributed to the overall uptrend in European shares.

On the Canadian front, the main stock index observed an upward trajectory, attributed to the slight increase in oil prices, which were buoyed by the possibility of an extension of production cuts by OPEC+ members.

Corporate Stock News

• Chinese President Xi Jinping’s Europe Visit:
  • May expose divisions over trade with Beijing and Europe’s positioning between US and China.
• Societe Generale:
  • Reported a 22% decline in first-quarter net income.
  • Equity derivative sales partially offset weaknesses in retail banking and fixed-income trading.
• Glencore:
  • Considering a bid for Anglo American, potentially sparking a bidding war for the mining company.
• Airbus:
  • Seeking financial compensation to absorb money-losing operations from Spirit AeroSystems, complicating a tie-up deal with Boeing.
• Toronto Home Sales:
  • Fell for the third consecutive month in April.
  • Prices rose due to high interest rates.
• TC Energy:
  • Exceeded profit estimates in the first quarter due to strong LNG demand.
• Magna International:
  • Missed first-quarter profit estimates and lowered annual sales forecast due to supply chain issues.
• AES Corp:
  • Beat Wall Street estimates for first-quarter profit, benefited from renewables projects and lower costs.
• Alliant Energy Corp:
  • Reported a decline in first-quarter profit due to unfavorable weather and higher financing expenses.
• Amgen Inc:
  • Discontinued its oral obesity candidate.
  • Reported slightly lower first-quarter profit but raised revenue outlook for 2024.
• Ameren Corp:
  • First-quarter profit fell due to low demand caused by mild weather and a charge related to litigation.
• Apple Inc:
  • Quarterly results and forecast surpassed expectations.
  • Record share buyback plans announced.
• Block Inc:
  • Raised full-year adjusted core earnings forecast and plans to invest in bitcoin.
• Booking Holdings Inc:
  • Exceeded Wall Street estimates for first-quarter profit, driven by strong international travel demand.
• Camden Property Trust:
  • Beat Wall Street estimates for first-quarter funds from operations, driven by strong rental demand in certain markets.
• Cheniere Energy Inc:
  • Reported lower LNG revenue in the first quarter due to falling natural gas prices.
• Cloudflare Inc:
  • Reported a wider first-quarter operating loss as sales and marketing costs increased.
• Coinbase Global Inc:
  • Swung to a first-quarter profit, helped by increased cryptocurrency trading following the launch of ETFs.
• Consolidated Edison Inc:
  • Beat Wall Street estimates for first-quarter profit, aided by higher electricity rates and lower expenses.
• Coterra Energy Inc:
  • Beat estimates for first-quarter profit as higher output volumes countered a decline in natural gas prices.
• DaVita Inc:
  • Raised its annual profit forecast on strong demand for kidney dialysis services.
• Digital Realty Trust Inc:
  • Beat Wall Street estimates for funds from operations on strong demand for data center services.
• EOG Resources Inc:
  • Beat first-quarter profit estimates due to higher oil production and prices.
• Expedia Group Inc:
  • Lowered its full-year revenue growth forecast due to a drag in its vacation rental platform and poor performance in its B2C segment.
• Federal Realty Investment Trust:
  • Beat market expectations for first-quarter revenue and raised the lower end of its forecast for funds from operations.
• Fortinet Inc:
  • Forecasted Q2 billings below Wall Street estimates due to muted enterprise spending and competition.
  • Expects billings between $1.49B and $1.55B, below analysts’ estimates.
  • Q1 billings were $1.41B, down 6.4%, with revenue at $1.35B, up 7.2%.
• Hologic Inc:
  • Beat Q2 profit estimates, but narrowed annual sales forecast range.
  • Q2 revenue at $1.02B, in line with estimates.
  • Breast health segment sales fell 0.2%, diagnostics segment down 3.1%.
• Illumina Inc:
  • Reiterated 2024 revenue forecast, expects weak demand from customers.
  • Q1 revenue was $1.08B, above estimates, with adjusted profit at 9 cents per share.
• Ingersoll Rand Inc:
  • Reported Q1 revenue below estimates due to lower demand.
  • Raised full-year adjusted EPS expectations to $3.20-$3.30.
  • Q1 adjusted profit was 78 cents per share, above estimates.
• MercadoLibre Inc:
  • Q1 net profit surged 71%, beating estimates.
  • Net revenue up 36% from a year earlier to $4.3B.
  • Operational margins at 12.4%, beating expectations.
• Monster Beverage Corp:
  • Q1 revenue up 12%.
  • Gross profit margin increased to 54.1%.
• Motorola Solutions Inc:
  • Raised full-year revenue and profit forecast.
  • Q1 sales grew 10% to $2.40B, adjusted profit was $2.81 per share.
• MP Materials Corp:
  • Reported wider-than-expected Q1 loss due to weak mineral prices.
  • Realized price of rare earth oxide declined 54%.
  • Sold 9,332 metric tons of concentrate, down 9%.
• Pioneer Natural Resources Co:
  • Reported lower Q1 profit due to higher production costs and weak gas prices.
  • U.S. FTC approved Exxon’s $60B purchase but barred Pioneer’s former CEO from Exxon’s board.
• Regency Centers Corp:
  • Beat Q1 FFO expectations, raised annual FFO forecast.
  • Q1 FFO at $1.08 per share, above estimates.
• Diageo PLC:
  • Named Nik Jhangiani as CFO, replacing Lavanya Chandrashekar.
  • Jhangiani has over 30 years of finance experience.
• Shell PLC:
  • Appointed Parminder Kohli as UK country chair and head of sustainability.
  • Kohli has over 20 years of experience with Shell.
• Allele Inc:
  • Global Infrastructure Partners and CPP Investments nearing a deal to buy Allete for around $5B.
• Alphabet Inc:
  • U.S. government to lay out antitrust case against Google.
  • Google asks U.S. judge not to impose sweeping changes to Play app store.
• Apollo Global Management Inc & Paramount Global:
  • Sony Pictures and Apollo made $26B cash offer for Paramount Global.
  • Some shareholders have raised concerns about the deal.
• Berkshire Hathaway Inc:
  • Director says Greg Abel may not get same leeway as Buffett for acquisitions.
  • Settlement reached in 2014 class action lawsuit related to platinum and palladium trading.
• Brookfield Asset Management Ltd:
  • SVB Capital to be acquired by an entity affiliated with Pinegrove Capital Partners.
  • Pinegrove and SVB Capital will operate independently.
• Chevron Corp:
  • Working to resume full production at Gorgon gas facility after mechanical fault.
• Exxon Mobil Corp & Pioneer Natural Resources Co:
  • U.S. regulators approved Exxon’s $60B purchase of Pioneer.
  • Exxon to focus on dispute with Chevron over proposed acquisition of Hess Corp.
• Goldman Sachs Group Inc:
  • Reached in-principle settlement to resolve 2014 class action lawsuit related to platinum and palladium trading.
• Morgan Stanley:
  • Frasers Group withdrew London lawsuit against Morgan Stanley.
  • Lawsuit involved a nearly $1B margin call.
• Nordstrom Inc:
  • Sycamore Partners expresses interest in taking Nordstrom private.
  • Negotiations ongoing, no certainty of a deal.
• Norfolk Southern Corp:
  • Proxy advisory firm Egan-Jones recommends electing all seven of Ancora Holdings’ proposed director candidates.
  • Supports replacing CEO at next week’s election.
• Rivian Automotive Inc:
  • Received $827M incentive package from Illinois to expand operations at its Normal facility.
  • Plant can produce 150,000 vehicles a year.
• Tesla Inc:
  • NHTSA closed investigation into loss of rear-view cameras in Model X and Model S vehicles.
  • Tesla’s recall appears to address the risk, agency will continue to monitor.

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