Global Market Update
(About StockTargetAdvisor.com (STA Research): Is a Canadian investment research company specializing in advanced stock research and analysis. Our research team comprises of Financial Professionals.)
Canadian Markets
Canadian stocks rallied despite declines in oil and gold prices, The rebound came on positive news on Tariff respite, amid growing speculation that Canada could be slipping into a deeper recession, as indicated by weakening consumer spending and a cooling housing market. The decline in commodity prices, especially oil, reflects global demand uncertainty. The TSX was powered higher on bank, insurance and industrial sectors.
American Markets
U.S. equities surged after President Donald Trump eased tensions with the Federal Reserve, walking back threats to dismiss Fed Chair Jerome Powell. Investors interpreted this as a positive for monetary policy stability. Trump’s hint at lowering tariffs on Chinese imports revived hopes of a trade thaw between the world’s two largest economies, lifting risk sentiment. Meanwhile, the U.S. dollar stabilized, reducing the appeal of gold as a safe haven, thereby driving gold prices lower. Sectors benefiting from international trade and lower borrowing costs, such as tech and consumer discretionary, led the market gains.
European Markets
European markets climbed, buoyed by a strong earnings report from SAP, the continent’s largest software company, which beat expectations and raised guidance. Broader sentiment was also lifted by news that EU exports to the U.S. surged by 22% in February, suggesting resilient transatlantic demand despite trade uncertainty. The European Central Bank (ECB) added a dovish undertone by signaling that inflation in the eurozone is expected to decline further in coming months, which supports expectations of accommodative policy.
UK stocks gained amid a flurry of domestic political and economic developments. Chancellor Rachel Reeves faced mounting pressure over the UK’s fiscal outlook, including calls to provide more clarity on public sector funding and growth strategies. To stimulate economic momentum, Reeves renewed efforts to strike a trade deal with the United States, aiming to boost exports and investment flows. Meanwhile, the IMF forecasted three interest rate cuts for the UK this year, a sign that inflation is cooling and monetary policy could become more supportive, aiding both business confidence and consumer spending.
Corporate Stock News
Alphabet Inc
• Bernstein cuts price target of GOOGL to $165 from $200, citing macro and trade-related challenges affecting outlook for H2 2025 and 2026.
Amazon.com Inc
• Telsey cuts price target to $235 from $275, citing tariff uncertainties impacting spending and cost base, with significant China exposure.
Apple Inc & Meta Platforms Inc
• Fined €500M and €200M respectively by EU regulators under the Digital Markets Act. Apple to appeal; Meta criticizes the decision. Sanctions could provoke U.S. retaliation.
AT&T Inc
• Beat Q1 subscriber addition estimates with 324,000 net postpaid additions (vs est. 258,300). Revenue rose 2% to $30.6B. Company plans share repurchases in Q2.
Baker Hughes Co
• Warned of $100M–$200M annual profit hit from tariffs. Q1 profit beat estimates with strong demand in natural gas tech. Adjusted EPS: $0.51 vs est. $0.48.
Capital One Financial Corp
• Q1 net income rose to $1.33B ($3.45/share) from $1.20B ($3.13/share). Net interest income up 7% to $8.01B. Net charge-offs rose 4.6% to $2.74B.
Chubb Ltd
• Q1 profit down 38% due to $1.64B catastrophe losses, mostly from California wildfires. Net investment income rose 12.2% to $1.56B. Combined ratio rose to 95.7%.
Check Point Software Technologies Ltd
• Beat Q1 EPS estimates with $2.21 (vs $2.19 est), boosted by AI-driven security sales. Revenue up 7% to $638M. No impact yet from global market volatility.
CME Group Inc
• Q1 profit rose to $956M ($2.62/share) from $855M ($2.35/share) last year. Revenue up to $1.64B on strong trading volumes amid economic uncertainty.
ConocoPhillips
• Will cut staff after $23B Marathon Oil buyout. Hired BCG to advise on restructuring plan dubbed “Competitive Edge”. Facing cost pressures with oil under $65/barrel.
Devon Energy Corp
• Piper Sandler raised price target to $56 from $54 following its business optimization plan aimed to generate $1B in free cash flow by end-2026.
Enphase Energy Inc
• Missed Q1 EPS ($0.68 vs est. $0.70) and revenue ($356.1M vs est. $360.9M). Forecasts Q2 revenue of $340M–$380M (below est. midpoint).
Ford Motor Co, GM, Stellantis NV, Toyota Motor Corp
• Auto groups urged Trump not to impose 25% tariffs on imported parts, warning of price hikes and lower sales. Letter sent to key trade and treasury officials.
GlobalFoundries Inc & United Microelectronics Corp (UMC)
• UMC denies merger talks with GlobalFoundries despite recent reports. UMC CFO calls it “market rumors”; no official announcement made.
Intel Corp
• Plans to cut over 20% of workforce in cost-cutting drive under new CEO Lip-Bu Tan. Move follows previous 15% workforce reduction last August.
Intuitive Surgical Inc
• Beat Q1 EPS ($1.81 vs est. $1.72) and revenue ($2.25B vs est. $2.19B). Warns of potential material 2025 impact from additional tariffs. Projects margin compression.
Packaging Corp of America
• Beat Q1 profit estimates ($2.31/share vs est. $2.21) on $2.14B revenue. Sees Q2 EPS of $2.41, below est. $2.61, due to rising freight/logistics costs.
Rogers Communications Inc
• Added only 11,000 postpaid subscribers in Q1 (vs est. 17,390), struggling amid price wars and tighter immigration. Wireless revenue C$2.54B (vs est. C$2.57B).
Snap Inc
• Sued by Florida for violating state law protecting children from addictive social media. State accuses Snap of marketing unsafe content to users under 13. Snap defends law as unconstitutional.
Tesla Inc
• Q1 auto revenue down 20%, net profit down 71%. Revenue missed ($19.34B vs est. $21.11B). Gross margin fell to 12.5%. Musk to scale back Trump-related activities.
• TD Cowen cuts price target to $330 from $388 amid poor sentiment and macro risks.
Verizon Communications Inc
• Scotiabank raised their target on VZ to $49 from $48.50, projecting growth after Q1 results aligned with expectations.
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.
