Global Markets
Canadian Markets
Canada’s TSX dropped as falling oil and gold prices exerted downward pressure on the energy and mining sectors. The Bank of Nova Scotia rose more than 2% in trading after reporting a better-than-expected quarterly earnings result. The bank’s strong performance, driven by higher interest income and resilient operations, reinforced investor confidence in the stability of Canadian banks, despite restructuring and severance charges, as the economy faces slowing growth and uncertainty in trade and inflation.
American Markets
American stocks rebounded following yesterday’s sell-off, led by cloud computing stocks, which rose after MongoDB reported stronger-than-expected earnings. However, AI stocks drew renewed scrutiny as Amazon (AMZN) announced a new AI chip it was producing itself on Tuesday. This development reflects the ongoing competition in the AI hardware space, as tech giants seek to challenge Nvidia (NVDA) by offering custom chips capable of handling AI workloads at lower costs, potentially reshaping margins and market share in the sector.
European Markets
European markets were mixed while banking stocks gained, and healthcare stocks pressured the markets downward. Inflation data for November indicated a pickup across the EU, which could influence the ECB to stay course with no adjustments to its monetary policy.
UK stocks traded flat, as the pound weakened and financial stocks moved higher but consumer staples and mining stocks weighed on the market. The OECD raised its 2026 growth forecast for Britain to 1.2% from 1%, with projections UK of growth to expand to 1.3% in 2027, reflecting modest but steady economic growth.
Corporate Stock News
Amazon.com Inc (AMZN) – The company is testing ultra-fast delivery of household essentials and fresh groceries in parts of Seattle and Philadelphia through its “Amazon Now” service, capable of delivering items in about 30 minutes. This move reflects Amazon’s effort to expand its domestic footprint and compete in the fast-delivery market, particularly for single-item purchases.
Apple Inc (AAPL) – Apple has refused to preload its smartphones with a government-mandated cybersecurity app in India, raising concerns about user privacy and regulatory compliance. Separately, the company named Amar Subramanya as VP of AI, reflecting its continued focus on AI development. Legal and regulatory pressures, along with talent moves, indicate Apple is navigating both compliance and innovation challenges globally.
Bank of Nova Scotia (BNS:CA) – The Canadian bank reported a Q4 profit of C$2.56 billion (C$1.93 per share), up from C$2.12 billion a year earlier, driven by higher interest income. The results highlight resilience despite macroeconomic uncertainty, including stalled U.S. trade talks.
Bombardier Inc (BBD.B) – National Bank of Canada raised its target price to C$263 from C$234, based on strong demand for business jets and growing defense momentum. The upgrade underscores confidence in the company’s growth trajectory through 2027.
Bristol Myers Squibb Co (BMY) – A U.S. judge rejected a bid to dismiss a $6.7 billion lawsuit related to the Celgene acquisition, allowing some claims on behalf of shareholders to move forward. This highlights ongoing legal risks tied to acquisitions and contingent value rights payouts.
Celcuity Inc (CELC) – Jefferies raised its target price to $134 from $108, citing confidence in the company’s breast cancer drug trial planned for 2026. The update reflects optimism about potential future revenue from oncology innovations.
Costco Wholesale Corp (COST) – Costco sued the U.S. government to ensure it can recover tariffs if the Supreme Court rejects former President Trump’s authority to impose them. The case underscores the ongoing regulatory and policy risks affecting major U.S. retailers.
Eli Lilly (LLY:CA) – Berenberg raised its target price to $950 from $830, following strong Q3 results and expected long-term growth driven by obesity and diabetes drugs. The update highlights the company’s strong product pipeline and earnings potential.
EPR Properties (EPR:CA) – JPMorgan cut its target price to $58 from $65 due to weaker projected earnings growth for 2026 and 2027. The adjustment reflects caution over future rental income and property performance.
Exxon Mobil Corp (XOM) – Exxon is exploring the purchase of Lukoil’s stake in the West Qurna 2 oilfield in Iraq, signaling a major expansion in the region as sanctions pressure Russia’s energy companies. The move highlights Exxon’s strategic growth ambitions amid geopolitical energy shifts.
Laurentian Bank of Canada (LB:CA) – Fairstone Bank is acquiring Laurentian Bank in an all-cash deal valued at C$1.9 billion, while National Bank will acquire Laurentian’s retail and SME portfolios. The deals reflect consolidation in Canadian banking and a strategic shift toward commercial banking.
Marvell Technology Inc (MRVL) – Marvell is in talks to acquire Celestial AI in a cash-and-stock deal potentially exceeding $5 billion. The acquisition would expand Marvell’s networking and AI chip capabilities, intensifying competition with larger rivals like Broadcom.
MongoDB Inc (MDB) – Scotiabank raised its target price to $415 from $320 after strong Q3 results, reflecting confidence in the company’s cloud and database growth trajectory.
Netflix Inc & Warner Bros Discovery Inc (NFLX & WBD) – Netflix submitted a second round of bids in an ongoing auction for Warner Bros, highlighting continued consolidation interest and strategic expansion in the streaming and media sectors.
Realty Income Corp (O) – Realty Income will make an $800 million investment in CityCenter Las Vegas properties via Blackstone Real Estate, marking its second partnership with the firm. This strengthens Realty Income’s position in high-value commercial real estate.
Starbucks Corp (SBUX) – Starbucks agreed to a $38.9 million settlement with New York City for violating scheduling laws over three years, highlighting ongoing regulatory and compliance risks for large employers.
Tetra Technologies Inc (TTI) – Tetra signed a term sheet with Pentagon-backed Magrathea to explore a U.S. magnesium refinery joint venture. The project aims to boost domestic magnesium production, which is critical for defense, aerospace, and industrial supply chains.
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How does Amazon’s unveiling of its own AI chip—amid a broader rebound in cloud computing stocks driven by MongoDB’s strong earnings—signal a strategic shift in the competitive dynamics of the AI hardware market, and what implications might this have for Nvidia’s dominance, cloud provider margins, and the broader trend of vertical integration among tech giants seeking to control both infrastructure and AI workloads while offering cost-optimized alternatives to enterprise customers?
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