Global Markets
Canadian Analyst Ratings
Canada’s TSX moved higher, supported by rising energy stocks after oil prices surged more than 4%, while gains in major financial institutions added further strength to the market. The Bank of Canada analysts estimate that goods subject to Ottawa’s counter-tariffs on U.S. imports last year were priced about 6% higher on average than similar non-tariffed goods. The federal government had imposed 25% tariffs on select U.S. groceries, clothing, and household staples for roughly six months starting in March 2025, as a retaliatory response to tariffs introduced under U.S. President Donald Trump.
American Markets
US stocks traded mostly lower as strength in semiconductor and AI-related stocks faded as investor sentiment turned more cautious after April’s CPI data came in hotter than expected at 3.8% versus forecasts of 3.7%, reinforcing fears that inflation may remain sticky for longer than markets anticipated. Oil moving higher in todays trading added to those concerns by increasing expectations that energy costs could continue feed into broader consumer inflation over coming months. As a result, investors shifted modestly toward a risk-off stance, with defensive positioning emerging after recent strong gains in technology and growth stocks.
European Markets
European markets were lower despite an unexpected improvement in German investor sentiment during May, as broader macro concerns continued to dominate trading. Norway raised its forecast for 2026 oil and gas revenues to approximately $78 billion, reflecting stronger commodity price assumptions, continuing to benefit from tight global supply conditions.
UK stocks were flat, though underlying that sentiment remained fragile. UK government borrowing costs are rising sharply, with 10-year gilt yields reaching over 5%, their highest level since 2008. While political pressure on Prime Minister Keir Starmer is adding to market uncertainty, broader factors are also contributing to elevated borrowing costs, making UK yields the highest among major advanced economies.
Corporate Stock News
Accuray Inc (ARAY)
Jefferies downgraded Accuray to Hold from Buy and cut its price target to $0.35 from $3.05 after weak fiscal Q3 revenue and withdrawal of fiscal 2026 guidance reduced visibility.
Aevex Corp. (AVEX)
JPMorgan initiated coverage on Aevex Corp with an Overweight rating and a $33 price target, citing potential for expanded international defense drone contracts.
Boeing Co (BA)
Boeing faces renewed legal scrutiny over alleged concealment of 737 MAX safety issues related to MCAS during sales to LOT Polish Airlines, with accusations focusing on regulatory transparency and engineering disclosures.
Bristol Myers Squibb Co (BMY)
Bristol Myers Squibb entered a collaboration with Jiangsu Hengrui Pharmaceuticals potentially worth up to $15.2 billion, spanning oncology and immunology drug development with global rights split between markets.
BuzzFeed Inc (BZFD)
BuzzFeed agreed to sell a 52% stake to Byron Allen for $120 million, with Allen becoming CEO while founder Jonah Peretti transitions to a new AI-focused role amid financial pressure.
CVS Health Corp (CVS)
JPMorgan raised CVS’s price target to $111 from $101 after the company increased its 2026 guidance, reflecting improved earnings expectations.
eBay Inc (EBAY) & GameStop Corp (GME)
eBay rejected GameStop’s $56 billion takeover bid due to financing concerns, raising the possibility of a hostile bid despite skepticism about GameStop’s financial capacity.
GoPro Inc (GPRO)
GoPro is reviewing strategic options including a potential sale or merger after weak Q1 results and declining revenue, alongside new interest from outside parties.
Hims & Hers Health Inc (HIMS)
Hims & Hers reported a wider loss and revenue miss as its shift to branded GLP-1 drugs pressured margins. JPMorgan cut its price target to $33 from $35, though profitability is still expected by 2027.
JD.com Inc (JD)
JD.com posted 4.9% revenue growth, beating expectations due to Chinese consumer electronics subsidies, though the company warned that subsidy effects may fade.
Lenz Therapeutics Inc (LENZ)
Piper Sandler downgraded Lenz Therapeutics to Neutral from Overweight and cut its price target to $12 from $39 due to weaker-than-expected adoption of its VIZZ eye drops.
Meta Platforms Inc (META)
Meta lost its appeal in a European court case requiring compensation to publishers for news snippets, reinforcing regulatory pressure over content use and AI-related copyright issues.
Microsoft Corp (MSFT)
OpenAI and Microsoft reportedly capped revenue-sharing payments at $38 billion, potentially giving OpenAI greater flexibility for future partnerships and IPO plans.
Netflix Inc (NFLX)
Netflix was sued by Texas’s attorney general over allegations of unauthorized data collection and addictive design practices, including autoplay features and third-party data sharing claims.
On Holding AG (ONON)
On Holding raised its 2026 profit margin outlook on strong sneaker demand and brand momentum, supported by successful product launches and growing consumer adoption.
Suncor Energy Inc (SU:CA) (SU)
JPMorgan raised Suncor’s price target to C$106 from C$105 following strong Q1 results driven by higher production and refining throughput.
Steris plc (STE)
Steris raised 2027 profit guidance above expectations, supported by strong sterilization demand, rising procedure volumes, and announced a $1 billion share buyback program.
Venture Global Inc. (VG)
Venture Global raised its profit outlook due to stronger LNG demand, higher export volumes, and improved liquefaction fees amid global energy disruptions.
Wendy’s Co (WEN)
Trian Fund Management is exploring a potential take-private deal for Wendy’s with outside investors as part of a broader turnaround strategy for the fast-food chain.
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