Market Overview: February 6, 2024
Global Markets Recap: Canada’s primary stock index saw marginal gains, while Wall Street remained mixed, with investors eagerly awaiting insights from Federal Reserve officials on potential rate-cut timings. In Europe, stock markets edged higher, buoyed by impressive earnings reports from BP, although losses in UBS and Nordic Semiconductor tempered gains. Asian markets experienced varied performance, with Chinese shares witnessing a significant one-day surge, attributed to signals of reinforced support measures from authorities. However, Japan’s Nikkei closed lower as investors opted to secure profits amidst high stock valuations and ongoing scrutiny of domestic earnings reports. The U.S. dollar saw a slight uptick, while gold prices remained relatively flat. Oil prices maintained stability, with market attention drawn to Gaza ceasefire negotiations.
Top News Highlights:
Eli Lilly & Co: Forecasts profits for 2024 above expectations driven by demand for Zepbound and Mounjaro.
BP PLC: Surpassed Q4 earnings forecasts, announced share repurchases, and pragmatic investments.
US FAA: Faces congressional inquiry regarding oversight of Boeing after a 737 MAX 9 incident.
Suncor Energy Inc: Penalized $10.5 million for air pollution violations at its Colorado refinery.
Stocks of Interest:
- Suncor Energy Inc: Faces penalties for air pollution violations.
- BP PLC: Surpassed earnings forecasts in Q4.
- Centene Corp: Beat revenue estimates in Q4.
- Check Point Software Technologies Ltd: Exceeded Q4 profit expectations, CEO transition planned.
- DuPont de Nemours Inc: Beat Q4 profit estimates, announced new share repurchase program and dividend hike.
- Toyota Motor Co: Raised full-year operating profit forecast.
- UBS Group AG: Resuming share buybacks, outlined cost-saving measures.
- Trending News:
- Abbott Laboratories: Faces legal challenges over baby formula safety concerns.
- Alphabet Inc: Urges regulatory action against surveillance software offenders.
- Blackstone Inc: Partners with BNP Paribas to launch new private debt fund.
Top Analyst Ratings:
Here’s a summary of today’s analyst recommendations:
- Air Products and Chemicals Inc: JPMorgan lowered the target price to $270 from $295 due to the company’s reduction in its full-year forecast, citing economic uncertainty in its primary market, Asia.
- Caterpillar Inc: Jefferies increased the target price to $395 from $350 following the company’s strong fourth-quarter results, driven by a lower tax rate and better-than-expected pricing.
- Estee Lauder Companies Inc: Berenberg raised the target price to $152 from $118 after the company’s second-quarter results surpassed earnings expectations.
- McDonald’s Corp: RBC decreased the target price to $335 from $340 after the company’s fourth-quarter earnings revealed a decline in the domestic industry from lower income consumers and the near-term impact of macro trends outside the U.S.
- Palantir Technologies Inc: Jefferies raised the target price to $22 from $13 following the company’s impressive fourth-quarter earnings and introduction of free cash flow guidance above consensus.
- Parkland Corp: TD Securities increased the target price to C$53 from C$52, driven by the company’s long-term EBITDA target, supported by organic growth, synergy capture, and cost efficiency.
- Sleep Country Canada Holdings: National Bank of Canada raised the target price to C$28 from C$27 in anticipation of the company’s fourth-quarter earnings and expected recovery in consumer confidence.
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