Global Stock Markets:
- Japan: Japan’s Nikkei surged to a fresh 34-year peak, buoyed by the record-high close of the U.S. S&P 500 on the preceding Friday.
- Europe: European stocks saw gains, influenced by the positive momentum from the U.S. and global markets.
- Canada: The Canadian stock index experienced a rise as investors eagerly awaited the upcoming policy decision from the Bank of Canada. The positive sentiment was in line with broader global trends.
- American: U.S. markets, particularly Wall Street, advanced as investors prepared for a week filled with central bank meetings, major economic data releases, and corporate earnings announcements.
Regional Disparities:
- China and Hong Kong: Shares in China and Hong Kong faced a slump due to relentless foreign outflows and a surge in short selling. Confidence was further eroded by concerns about the region’s economic challenges.
Currency and Commodities:
- U.S. Dollar: The U.S. dollar showed minimal changes.
- Gold: Gold prices experienced a decline as hopes of a March interest rate cut by the Federal Reserve faded.
- Oil: Oil prices increased, driven by easing geopolitical concerns in the Middle East.
Corporate News:
- Gildan Activewear Inc: The Canadian apparel maker accused activist fund Browning West, LP of violating U.S. anti-trust laws by purchasing Gildan shares illegally. Gildan alleged the move was an attempt by the fund to influence the company’s board.
- Tesla Inc: Investors were focused on Tesla’s profitability and delivery numbers, especially after the company announced sharp price cuts and a production pause at its Berlin factory.
- Kindred Group: The online gaming company confirmed receiving a cash takeover bid from French group La Francaise des Jeux.
- Allegro: The e-commerce platform signed an agreement with parcel locker firm InPost for a smaller level of price indexation for packages delivered in 2024.
- Macy’s Inc: Macy’s rejected a $5.8 billion bid from Arkhouse Management and Brigade Capital Management, citing concerns over deal financing and valuation.
Aviation Industry:
- Dublin Airport: Airlines canceled 102 flights in and out of Dublin Airport due to a storm, impacting travel plans.
Regulatory and Legal Developments:
- Boeing 737 Planes: U.S. authorities recommended checks on more Boeing 737 planes after an incident involving the MAX 9 variant. The checks were related to potential issues with door plugs.
- Exxon Mobil: Exxon filed a lawsuit against investors’ climate proposal, seeking to prevent it from going to a vote during the company’s shareholder meeting in May.
- Meta Platforms (Facebook and Instagram): Users in Europe were informed of more choices to comply with the European Union’s Digital Markets Act.
Executive Changes:
- Archer-Daniels-Midland Co: Ismael Roig was appointed as interim Chief Financial Officer following a board decision to place the current CFO Vikram Luthar on administrative leave pending an investigation into accounting practices.
Banking Sector:
- Goldman Sachs Group Inc: The bank’s board named David Viniar as its next independent lead director, succeeding Adebayo Ogunlesi. Tom Montag was appointed leader of the board’s risk committee.
Technology and Innovation:
- Waymo (Alphabet Inc): Waymo applied to the California Public Utilities Commission to expand its driverless service in Los Angeles.
- Instagram and Facebook (Meta Platforms Inc): Users in Europe were offered more choices to comply with the European Union’s Digital Markets Act.
Market Expansion and IPO:
- Amer Sports Corp: The maker of Wilson tennis rackets and Salomon ski boots targeted a valuation of up to $8.7 billion in its U.S. initial public offering.
Healthcare and Biotechnology:
- AstraZeneca Plc & BioNTech SE: BioNTech and Duality Biologics initiated a late-stage trial testing their precision drug against a certain type of breast cancer, challenging a rival partnership between AstraZeneca and Daiichi Sankyo.
Legal Disputes:
- B. Riley Financial Inc & Nomura Holdings Inc: U.S. authorities were reported to be investigating B. Riley’s deals with a client linked to securities fraud and the use of his assets to help the investment bank obtain a loan from Nomura.
Mining Industry:
- BHP Group Ltd: The miner announced the temporary shutdown of part of its Kambalda nickel concentrator in Western Australia due to a pause in mining by Wyloo Metals, a supplier of ore to the plant.
Financial Sector:
- Citigroup Inc: CEO Jane Fraser outlined her reorganization efforts during a lunch with Warren Buffett, who encouraged her to continue.
Telecommunications:
- HSBC Holdings Plc: China’s Vice President urged HSBC to deepen cooperation with China to improve Hong Kong’s status as a financial center during a meeting with the bank’s Chairman.
Airlines and Merger Challenges:
- JetBlue Airways Corp & Spirit Airlines Inc: The companies announced their intention to appeal a federal judge’s ruling blocking their planned merger, stating that the merger would violate U.S. antitrust law.
Real Estate and Retail:
- Choice Hotels International Inc & Wyndham Hotels & Resorts Inc: Choice Hotels pressed ahead with its $8 billion hostile bid for Wyndham Hotels, nominating a slate of directors to replace Wyndham’s board.
Oil and Gas Industry:
- Exxon Mobil Corp: Exxon filed a complaint in a Texas court seeking to prevent a climate proposal by activist investors from going to a vote during the company’s shareholder meeting in May.
Social Media and Technology:
- Meta Platforms Inc: Instagram and Facebook users in Europe were offered more choices to comply with the European Union’s Digital Markets Act.
Automotive Industry:
- Tesla Inc: Investors were closely watching Tesla’s results, especially after the company announced price cuts and a production pause at its Berlin factory.
Legal Disputes in Real Estate:
- Zillow Group Inc: Zillow successfully defeated a bid by REX – Real Estate Exchange for a new trial in a Seattle federal lawsuit accusing Zillow of deceptive business practices.
Top Analyst Ratings
- Comerica Inc (Stock Ticker: CMA): KBW reduced the target price from $60 to $58, anticipating a challenging revenue environment in 2024.
- Home Depot Inc (Stock Ticker: HD): Oppenheimer lowered the target price to $345 from $360, citing ongoing challenges in consumer demand trends within the home improvement retail sector.
- Lowe’s Companies Inc (Stock Ticker: LOW): Oppenheimer decreased the target price to $230 from $275, expressing concerns about the sector’s short-term market positioning turning too complacent.
- Sarepta Therapeutics Inc (Stock Ticker: SRPT): JPMorgan raised the target price to $177 from $112, indicating a high level of confidence in label expansion for the company’s Elevidys drug.
- Union Pacific Corp (Stock Ticker: UNP): Bernstein increased the target price to $280 from $229, stating that the company is well-positioned for the early stages of the next freight cycle.
- Fortis Inc: JPMorgan reduced the target price to C$50 from C$53, anticipating a relatively quiet first half in 2024 as investors consider long-term ramifications.
- Thomson Reuters Corp (Stock Ticker: TRI): RBC raised the target price to $149 from $133, citing a quick rise in consolidated organic revenue driven by growth-accretive mergers and acquisitions (M&A) and GenAI monetization.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
