Market Highlights Summary:

Market Overview:

• • Canada’s main stock index and U.S. stock indexes marginally lower.
  • European equities weighed down by declines in technology and financial stocks.
  • Japanese shares rise, while Chinese blue-chip stocks recover slightly.
  • U.S. dollar edges higher against major currencies.
  • Gold prices rise amid reassessment of Fed rate cut chances.
  • Ongoing Middle East conflict and supply outage in Libya support oil prices.

1. UK Mortgage Rates: UK mortgage rates are pricing in a at 6 month lows
2. Japan’s Core Inflation Slows: Core inflation in Japan’s capital slowed for the second consecutive month in December, easing cost-push price pressures. This might reduce pressure on the central bank to hastily exit ultra-loose monetary policy.
3. Canadian Bank CEOs Expect Loan Loss Provisions: CEOs of Canadian banks anticipate further loan loss provisions in 2024.
4. Soft Landing for Global Economy in 2024: The World Bank suggests that a soft landing is increasingly possible for the global economy in 2024.
5. Airbus Nearing Deal with Delta Air Lines: Airbus is close to securing an order from Delta Air Lines for dozens of wide-body jets, including extra A350-1000 aircraft.
6. Mercedes-Benz Launches AI Virtual Assistant: Mercedes-Benz introduced a new virtual assistant at the CES electronics trade fair capable of providing context-based suggestions and engaging in dialogue with users, signaling advancements in AI for cars.
7. Bayer’s Expansion into the U.S.: Despite a setback in November, Bayer plans to continue its expansion into the U.S. pharmaceutical market.
8. Boeing 737 MAX Panel Investigation: U.S. investigators are probing whether a cabin panel on an Alaska Airlines Boeing 737 MAX 9 was properly bolted.
9. Juniper Networks’ Potential Deal with Hewlett Packard Enterprise: Juniper Networks’ shares rise amid reports of Hewlett Packard Enterprise nearing a $13 billion deal, capitalizing on the AI boom.
10. Biden Administration Rule on Gig Work: The U.S. Department of Labor issued a rule that could curb ‘gig’ work by forcing companies to treat some workers as employees rather than independent contractors.
11. Google Faces Patent Trial over AI Technology: Alphabet’s Google is set to go to trial over accusations that processors it uses for AI technology infringe a computer scientist’s patents.
12. Big Tech Opposes Consumer Watchdog Plans: Big Tech companies, including Apple and Google, rebuff U.S. consumer watchdog plans to supervise digital wallets, citing potential innovation stifling.
13. Big Banks Fail to Exclude States from Rate-Rigging Class Action: Bank of America and other big banks fail in an attempt to exclude states from a rate-rigging class action lawsuit.
14. Jefferies Financial Group Q4 Results: Jefferies reports a smaller-than-expected Q4 profit, citing economic uncertainty impacting dealmaking.
15. Leadership Change at JetBlue Airways: Joanna Geraghty appointed CEO of JetBlue Airways, succeeding Robin Hayes.
16. Alaska Airlines Boeing 737 MAX Panel Investigation: U.S. National Transportation Safety Board (NTSB) investigates a recovered cabin panel that blew off an Alaska Airlines Boeing 737 MAX 9 plane.
17. Alcoa to Halt Production at Kwinana Alumina Refinery: Alcoa plans to stop production at its loss-making Kwinana Alumina Refinery in Western Australia due to challenging market conditions.
18. Google Faces Multibillion-Dollar Patent Trial: Google faces a multibillion-dollar patent trial in Boston over accusations that its processors infringe a computer scientist’s patents.
19. U.S. Watchdog’s Plan on Digital Wallets Opposed by Big Tech: Big Tech companies oppose a U.S. watchdog’s plan to supervise digital wallets, citing innovation risks.
20. Earnings Report – Jefferies Financial Group Inc: Jefferies reports a smaller-than-expected Q4 profit due to economic uncertainty impacting dealmaking.
21. Earnings Report – JetBlue Airways Corp: JetBlue names Joanna Geraghty as CEO; outgoing CEO Robin Hayes cites toll of job challenges as he retires.
22. Earnings Report – Alaska Air Group Inc: NTSB investigates a recovered cabin panel on an Alaska Boeing 737 MAX 9, raising concerns about Boeing’s manufacturing.
23. Earnings Report – Alcoa Corp: Alcoa plans to stop production at its Kwinana Alumina Refinery in Western Australia due to challenging market conditions.
24. Earnings Report – Alphabet Inc (Google): Google faces a federal jury trial in Boston over accusations that its processors infringe a computer scientist’s patents.
25. Earnings Report – Alphabet Inc & Apple Inc: Big Tech companies warn that a U.S. watchdog’s plan to supervise digital wallets may stifle innovation and limit market access.
26. Earnings Report – Jefferies Financial Group Inc: Jefferies reports a smaller-than-expected Q4 profit, citing economic uncertainty impacting dealmaking.
27. Earnings Report – Match Group Inc: Activist investor Elliott Investment Management builds a $1 billion stake in Match Group, pushing for performance improvement and stock price boost.
28. Earnings Report – Pfizer Inc: Pfizer remains aggressive in breaking into the obesity market despite dropping a high-profile weight-loss drug candidate.
29. Earnings Report – Ryanair Holdings Plc: Ryanair expects to be short on aircraft for its peak 2024 summer season due to Boeing delivery delays, likely revising down its traffic growth.
30. Earnings Report – Sony Group Corp & Zee Entertainment: Zee commits to its merger with Sony’s local arm amid reports of Sony planning to scrap the $10 billion deal.
31. Earnings Report – Tata Starbucks: Tata Starbucks plans to operate 1,000 cafes in India, doubling its workforce by 2028.
32. Earnings Report – Unity Software Inc: Unity Software plans to lay off approximately 25% of its workforce (1,800 jobs) in its largest layoff ever.

ANALYSTS’ RECOMMENDATION

Boyd Group Services Inc:

Analyst Action: TD Securities raised the target price for Boyd Group Services Inc from C$300 to C$320.
Rationale: TD Securities cited stronger growth prospects through 2025 as the reason for increasing the target price.

Brookfield Asset Management Ltd:

Analyst Action: TD Securities raised the target price for Brookfield Asset Management Ltd from $42 to $49.
Rationale: TD Securities referred to the firm’s fundraising success amid a difficult external environment as the basis for the target price increase.

Enthusiast Gaming Holdings Inc:

Analyst Action: Canaccord Genuity cut the rating for Enthusiast Gaming Holdings Inc from speculative buy to hold.
Rationale: The downgrade was attributed to potential impacts from recent management changes within the company.

TMX Group Ltd:

Analyst Action: Barclays raised the target price for TMX Group Ltd from C$31 to C$34.
Rationale: Barclays expects more promising macro conditions for equity trading and IPO activity, influencing the decision to raise the target price.

East West Bancorp Inc:

Analyst Action: Jefferies raised the target price for East West Bancorp Inc from $64 to $83.
Rationale: Jefferies cited benefits from East West Bancorp’s close relationship with its Chinese-origin customer base as the reason for increasing the target price.

Fifth Third Bancorp:

Analyst Action: Jefferies raised the target price for Fifth Third Bancorp from $29 to $40.
Rationale: The increase in target price is attributed to the expectation that Fifth Third Bancorp’s southeast expansion will likely contribute to credit growth.

JPMorgan Chase & Co:

Analyst Action: Jefferies raised the target price for JPMorgan Chase & Co from $172 to $202.
Rationale: Jefferies expects JPMorgan Chase’s diversified business model to continue outperforming peers, leading to an increase in the target price.

M&T Bank Corp:

Analyst Action: Jefferies raised the target price for M&T Bank Corp from $133 to $148.
Rationale: Jefferies highlighted M&T Bank Corp’s stronger balance sheet, which might lead to potential merger and acquisition (M&A) opportunities, as the reason for the target price increase.

Netflix Inc:

Analyst Action: Citigroup cut the rating for Netflix Inc from buy to neutral.
Rationale: Citigroup anticipates higher cash content costs and lower revenue for Netflix, leading to the downgrade in rating from buy to neutral.

STA Research

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.