Global Markets
Canadian Markets
Canada’s main stock index traded flat on Thursday as investors digested earnings reports from domestic lenders. TD Bank shares fell more than 4%, despite the bank beating earnings estimates, as ongoing anti-money laundering charges continued to weigh on investor sentiment.
EQB Inc. (EQB:CA) saw its stock drop over 10% following weak Q3 earnings and a CEO transition. The company reported a 32% decline in adjusted net income to $80.3M and missed EPS estimates at $2.07. Net interest income and margins also fell, and return on equity came in below guidance, which weighed on investor sentiment.
American Markets
American markets made another broad based rally, amid lingering uncertainty over Nvidia’s business in China, as trade tensions cast a shadow over the tech giant’s otherwise strong earnings outlook. Snowflake’s stock surged over 20 percent after reporting strong Q2 results with $1.09B in product revenue, in line with estimates, and raised its full-year product revenue forecast to $4.40B, driven by strong AI database demand. The U.S. Commerce Department reported that gross domestic product (GDP) expanded at a 3.3% annualized rate in the second quarter, rebounding sharply from a 0.5% contraction in the first quarter of 2025. This growth exceeded the department’s earlier estimate of 3% for Q2, signaling continued strength in U.S. economic activity.
European Markets
European markets were mostly mixed. Pernod Ricard reported upbeat earnings, boosting investor confidence in the consumer goods sector. European auto sales posted the largest increase since April 2024, highlighting a strong recovery in the automotive market. Europe reported higher auto sales in July with BYD emerging as a leading player over Tesla in the local market, underscoring shifts in automotive industry dynamics.
In the United Kingdom, equities fell, pressured by weakness in technology and utility stocks. UK car production rose for the second consecutive month in July. Zoopla warns that UK homes priced above market value take twice as long to sell compared with correctly priced properties, highlighting the importance of realistic pricing in the housing market. Despite economic challenges in the UK, 80% of online small businesses expect to achieve growth, reflecting resilience and optimism in the digital sector.
Corporate Stock News
Abercrombie & Fitch Co (ANF): JPMorgan cut target to $145 from $151 due to tariffs impacting full-year growth despite strong quarterly results.
Berkshire Hathaway Inc (BRK.B): Increased stakes in Japan’s Mitsubishi Corp (10.23%) and Mitsui & Co (previously 9.82%), expanding holdings in five Japanese trading houses.
BlackRock Inc (BLK): Pushed back against political pressure over retirement assets management, emphasizing fiduciary responsibility to clients.
Boeing Inc (BA) & Spirit AeroSystems Holdings (SPR): Boeing seeks EU approval to buy back Spirit AeroSystems for $4.7B; EU decision expected by September 30.
Canadian Imperial Bank of Commerce (CM:CA): Reported a rise in Q3 profit, led by capital markets performance. Adjusted net income rose to C$2.1B or C$2.16/share, up from C$1.90B. Credit loss provisions C$559M, below analyst estimates; trading volumes increased amid economic uncertainty.
Cooper Companies Inc (COO): Lowered annual revenue forecast to $4.07–4.10B due to slowing demand in some regions, but raised annual adjusted EPS to $4.08–4.12. Q3 EPS beat estimates at $1.10/share.
CrowdStrike Holdings Inc (CRWD): Jefferies cut target to $500 from $530 after weaker subscription revenue guidance. Shares fell on weaker Q3 revenue forecast despite beating EPS estimates.
Eli Lilly and Co (LLY): Temporarily paused UK shipments of weight-loss drug Mounjaro ahead of upcoming price hike; supply allocations in place to manage distribution.
Fox Corp (FOX): Reached a short-term agreement with YouTube to maintain Fox News, Fox Sports, and other channels on YouTube TV while negotiations continue.
General Electric Co (GE): Over 600 UAW workers went on strike at Ohio and Kentucky facilities; GE activated contingency plans.
Gold Reserve Ltd (GDR): Filed a motion to disqualify Elliott Investment affiliate Amber Energy’s $5.86B bid for PDV Holding, claiming it violates court orders and could short-change creditors.
HP Inc (HPQ): Beat Q3 revenue estimates ($13.93B vs. $13.70B) driven by AI-powered PCs and Windows 11 upgrades; Q4 EPS guidance in line with expectations.
Hudbay Minerals Inc (HBM:CA): Resumed Snow Lake, Manitoba operations after lifting of mandatory evacuation. No structural damage; full production expected by early September.
Kohl’s Corp (KSS): JPMorgan raised target to $11 from $10 after stronger-than-expected quarterly results with better same-store sales and margins.
Lululemon Athletica Inc (LULU): BTIG cut target to $375 from $405 due to slower U.S. growth and higher tariffs.
National Bank of Canada (NA): Jefferies cut target to C$153 from C$157 due to weaker top-line growth and disappointing trading.
NetApp Inc (NTAP): Forecast Q2 revenue slightly above estimates despite slower cloud spending; reaffirmed fiscal 2026 revenue guidance.
NVIDIA Corp (NVDA): JPMorgan raised target to $215 from $170 following strong Q2 results and optimistic guidance. CEO Huang highlighted long-term AI growth potential despite China-related uncertainties. Revenue guidance: $54B ±2%, with data center revenue slightly below estimates.
Snowflake Inc (SNOW): Shares surged on strong AI database demand; expects $4.40B in annual product revenue, up from prior forecast of $4.33B. Q2 product revenue $1.09B, in line with estimates.
Toronto-Dominion Bank (TD): Q3 profit rose to C$3.87B, or C$2.20/share, aided by lower credit loss provisions of C$971M.
Royal Bank of Canada (RY): TD Cowen raised target to C$208 from C$191, citing strong quarter, better credit performance, and solid capital markets activity.
Williams-Sonoma Inc (WSM): Jefferies raised target to $220 from $207 due to solid brand momentum and improved sales outlook.
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It’s interesting to see how Canadian financial stocks are struggling despite earnings beats, largely because of regulatory and leadership uncertainties. On the U.S. side, the sharp rebound in GDP alongside Snowflake’s surge shows how much investor sentiment is being shaped by AI-driven growth stories. The divergence really highlights how sector-specific factors are outweighing broader market trends right now.