Global Markets

Amidst a backdrop of global economic dynamics, the S&P 500 and Dow Jones Industrial Average exhibited modest gains, buoyed by an undercurrent of optimism surrounding expectations for a Federal Reserve rate cut. This positive sentiment provided a modest uplift to investor confidence, with markets cautiously optimistic about the potential for accommodative monetary policy measures.

In European markets, upbeat earnings reports from financial heavyweights UBS and Unicredit contributed to a surge in sentiment, propelling European shares higher. Additionally, speculation regarding potential rate cuts by the European Central Bank (ECB) and the Bank of England (BoE) added to the positive momentum, further bolstering investor sentiment across the continent.

Meanwhile, in Asia, the Nikkei index experienced robust gains, particularly driven by a rally in the technology sector. The positive performance in Japanese equities mirrored broader trends in global markets, reflecting a general appetite for risk assets amidst ongoing economic uncertainties.

In the realm of commodities, gold prices retreated as the U.S. dollar strengthened ahead of anticipated remarks from Federal Reserve officials. The firmer dollar weighed on the precious metal, dampening its appeal as a safe-haven asset in times of market volatility. Concurrently, the yen managed to pare earlier losses amid indications of potential intervention by Japanese authorities, signaling a cautious approach to currency management in response to evolving market dynamics.

Turning to Canada, the main stock index experienced a modest uptick, mirroring the positive sentiment seen in broader global markets. Additionally, futures tracking oil prices held steady, supported by geopolitical concerns in the Middle East. However, this upward momentum was tempered by weakness in the physical oil market, as investors turned their attention to the latest U.S. crude inventory reports for insights into supply and demand dynamics.

Corporate Stock News

• Air Lease Corp:
  • Reported lower-than-expected quarterly profit due to increased interest payments on aircraft purchase funds.
  • Interest payments rose by 19.8% to $181.6 million.
  • Quarterly profit per share was 87 cents, below the expected 91 cents.
  • Revenue rose 4.3% to $663.3 million but fell short of expectations.
• Axon Enterprise Inc:
  • Raised full-year core profit and revenue forecast.
  • Expects full-year 2024 revenue between $1.94 billion and $1.99 billion.
  • Adjusted core profit forecasted in the range of $430 million to $445 million.
  • Announced acquisition of drone defense firm Dedrone.
  • Reported first-quarter revenue of $461 million, up 34% year-on-year.
• BP PLC:
  • First-quarter earnings plunged 40% to $2.7 billion, missing forecasts.
  • Maintained dividend at 7.27 cents per share.
  • Profit fell 5% short of analyst forecasts.
  • Introduced target to deliver cash cost savings of at least $2 billion by the end of 2026.
• Coty Inc:
  • Beat Wall Street expectations for third-quarter revenue.
  • Expects to achieve high end of annual targets.
  • Third-quarter e-commerce revenue growth nearly 20%.
  • Adjusted gross margin rose by 190 basis points to 64.8%.
• Duke Energy Corp:
  • Beat Wall Street estimates for first-quarter profit.
  • Reaffirmed full-year adjusted profit forecast of $5.85 to $6.10 per share.
  • Adjusted profit for the quarter was $1.44 per share, beating estimates.
• Fidelity National Information Services Inc:
  • Raised forecast for annual adjusted profit.
  • Posted a 49% jump in first-quarter profit.
  • Expects annual adjusted profit per share between $4.88 and $4.98.
• FMC Corp:
  • Reported a first-quarter loss compared to a year-ago profit.
  • Net sales for the quarter at $918 million.
  • Reaffirmed full-year revenue outlook and adjusted profit per share forecast.
• Fresenius Medical Care AG:
  • Beat first-quarter operating earnings expectations.
  • Adjusted operating income surged 23% to 416 million euros.
  • Confirmed full-year forecast of low- to mid-single-digit percentage growth in revenue.
• International Flavors & Fragrances Inc:
  • Beat market expectations for first-quarter sales and profit.
  • Posted adjusted profit of $1.13 per share.
  • Expects annual sales at the high end of the prior forecast range.
• Kenvue Inc:
  • Beat Wall Street estimates for first-quarter profit.
  • Plans to cut 4% of its global workforce.
  • Posted first-quarter revenue of $3.89 billion, beating estimates.
• Lucid Group Inc:
  • Forecast higher capital expenditure this year.
  • Expects to produce 9,000 cars this year.
  • Reported first-quarter revenue of $172.7 million.
• Microchip Technology Inc:
  • Forecast first-quarter net sales and profit below Wall Street estimates.
  • Expects net sales in the range of $1.22 billion to $1.26 billion.
• Palantir Technologies Inc:
  • Raised annual revenue forecast.
  • Reported first-quarter revenue of $634.3 million.
  • Raised 2024 U.S. commercial revenue forecast.
• Realty Income Corp:
  • Topped Wall Street expectations for quarterly revenue.
  • Reported total revenue of $1.26 billion in the first quarter.
  • Reported adjusted funds from operations of $1.03 per share.
• Simon Property Group Inc:
  • Raised forecast for annual funds from operations.
  • Reported FFO in first quarter at $3.56 per share.
  • Posted revenue of $1.44 billion in the first quarter.
• UBS Group AG:
  • Reported first-quarter profit that trounced forecasts.
  • Wealth management arm reported $27 billion in net new assets.
  • Achieved an additional $1 billion in gross cost savings in the first quarter.
• Vertex Pharmaceuticals Inc:
  • Beat Wall Street estimates for first-quarter profit.
  • Reported adjusted earnings per share of $4.76 on revenue of $2.69 billion.
  • Reiterated annual revenue forecast of between $10.55 billion and $10.75 billion.
• Walt Disney Co:
  • Streaming entertainment unit posted its first profit ahead of schedule.
  • Raised annual earnings per share outlook.
  • Reported diluted earnings per share of $1.21.
• Williams Companies Inc:
  • Beat first-quarter profit estimates.
  • Reported a profit of 59 cents per share for the quarter ended March 31.
  • Reported quarterly adjusted core profit from the Transmission & Gulf of Mexico unit up about 15% to $839 million.
• Zeekr Intelligent Technology Holding (IPO):
  • Chinese electric vehicle maker planning to close its New York IPO bookbuilding to raise up to $367.5 million.
• Alphabet Inc (Google):
  • U.S. judge approved a $62 million Google consumer privacy settlement.
  • Settles claims over tracking and storing location data for 247.7 million U.S. mobile users.
• Amazon.com Inc:
  • Plans to spend $8.88 billion over four years to expand its cloud computing infrastructure in Singapore.
  • Launches online shopping service in South Africa, challenging competitors.
• Apple Inc:
  • Developing its own chip for running artificial intelligence software in data centers.
  • Project ACDC aims to leverage Apple’s chip design expertise.
• Boeing Inc:
  • Federal Aviation Administration opens investigation into Boeing 787 Dreamliner.
  • Long-awaited first crewed test flight of Boeing’s Starliner spacecraft delayed.
• Chevron Corp & Exxon Mobil Corp:
  • Executives call for clarity on U.S. energy subsidies to drive climate change investments.
• FedEx Corp:
  • Federal judge rules a small business contracted to deliver packages must arbitrate with FedEx over legal claims.
  • PYNQ Logistics Services alleges FedEx engages in a systemic pattern of illegal business practices.
• Freeport-McMoRan Inc:
  • Preparing to ship up to 900,000 metric tons of copper concentrate from Grasberg mine after talks with Indonesia.
• Goldman Sachs Group Inc:
  • U.S. judge formally ends criminal case related to work for Malaysian fund 1MDB.
  • Dismisses bribery conspiracy charge after Goldman completes deferred prosecution agreement.
• JPMorgan Chase & Co:
  • Reduces workforce in Hong Kong amid weaker market and dealmaking activities.
  • Moscow court authorizes seizure of assets held in Russia by European subsidiary in case lodged by Transkapitalbank.
• KKR & Co Inc:
  • Australia’s Perpetual to be broken up, with its name sold to KKR in a deal worth over A$1.5 billion.
• Microsoft Inc:
  • Hit with a complaint about its cloud practices to the Spanish antitrust regulator.
  • Complaint alleges dominance in operating systems and productivity software is used to force use of Azure cloud.
• Robinhood Markets Inc:
  • Receives enforcement action notice from the SEC over crypto tokens traded on its platform.
  • Firmly believes assets listed on its platform are not securities.
• Tesla Inc:
  • U.S. auto safety investigators probe Tesla’s December recall of over 2 million vehicles for new Autopilot safeguards.
  • Sells 62,167 China-made electric vehicles in April, down 18% from a year earlier.
• TotalEnergies SE:
  • Signs strategic cooperation agreement with China’s SINOPEC to strengthen cooperation in low-carbon energy.
• United Parcel Service Inc:
  • CFO and Executive Vice President Brian Newman to leave the company on June 1.

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