Global Markets
Canadian Markets
Canada’s main stock index advanced as investor sentiment was buoyed by stronger-than-expected earnings releases from the country’s largest banks. The upbeat financial results provided a lift to the broader financial sector, which offset weakness in energy stocks after crude oil prices slipped more than 2%.
American Markets
U.S. markets closed higher despite initial pressure from a sharp move upward in long-term Treasury yields, reflecting investor concerns about tighter financial conditions. Political noise also added to uncertainty, with President Trump continuing his public pressure campaign on the Federal Reserve regarding monetary policy. Market attention, however, has pivoted decisively toward Nvidia, which is set to report earnings tomorrow, with expectations elevated and analyst price targets being revised well above the $200 level, as the stock is positioned as the bellwether for U.S. tech sentiment. The results are widely viewed as a potential catalyst for broader market direction in the near term.
European Markets
European equities and government bonds both sold off sharply, driven by renewed political risk in France, where the minority government is facing an increasing likelihood of being kicked out next month. This political instability weighed on risk assets across the region and stoked volatility in sovereign debt markets. The downturn highlights lingering fragility in European investor confidence, particularly amid ongoing fiscal and policy uncertainty. Ireland provided a rare bright spot, as consumer sentiment ticked higher in August, suggesting households are slowly regaining confidence in the domestic economy.
UK stocks retreated as the Bank of England signaled it would hold interest rates steady, even as inflationary pressures persist. Consumer prices rose at their fastest pace since March 2024, reinforcing concerns that the UK economy remains locked in a stagflationary environment. The central bank’s cautious stance reflects the delicate balancing act between curbing inflation and preserving growth momentum, leaving investors wary of the near-term outlook for UK assets.
Corporate News
Apple Inc. (AAPL) – A Frankfurt court ruled Apple can no longer market its Apple Watch as “CO?-neutral” in Germany, saying its offset program in Paraguay lacked long-term guarantees.
Bank of Montreal (BMO:CA) – Reported Q3 net income of C$2.33B (C$3.14/share), supported by higher interest income and lower loan-loss provisions of C$797M versus C$906M last year.
Bank of Nova Scotia (BNS:CA) – Q3 adjusted profit rose to C$2.52B (C$1.88/share), driven by higher net interest income of C$5.49B compared with C$4.86B a year ago.
Boeing Co. (BA) & General Electric Co. (GE) – Korean Air placed a record $50B order for 103 Boeing planes and GE Aerospace engines, including 737 MAX 10s, 777-9s, and 787s.
Brown-Forman Corp. (BF.B) – CFO Leanne Cunningham will retire in May 2025 after three decades at the company; a successor search is underway amid muted demand.
Caterpillar Inc. (CAT) – Norway’s $2T wealth fund divested its $2.1B stake on ethical grounds, citing Caterpillar’s role in alleged human rights violations.
Cenovus Energy Inc. (CVE:CA) – ATB Capital raised its target price to C$28 from C$25, citing merger synergies, asset sales, and strong free cash flow.
Fox Corp. (FOX) – YouTube warned Fox channels could be dropped from YouTube TV if no renewal deal is reached; Fox is pushing for higher fees.
General Motors Co. (GM) – Recalled 23,500 Chevrolet Corvettes (2023–2026 models) due to a fuel leak risk that could cause fires.
Gilead Sciences (GILD) – Won EU approval for HIV prevention drug Yeytuo (lenacapavir), already approved in the U.S. as Yeztugo. Analysts project $4B in annual sales by 2029.
Groupe Dynamite Inc. (GRGD:CA) – TD Cowen lifted target price to C$40 from C$32, citing strong sales, real estate optimization, and e-commerce momentum.
Klarna Group PLC (KLARNA) – Reviving U.S. IPO plans with a $13–14B valuation target, a sharp drop from its $50B peak in 2021. Shares could price between $34–36.
Madrigal Pharmaceuticals Inc. (MDGL) – TD Cowen raised its target to $554 from $390, citing strong uptake of Resmetirom for MASH and potential wider approvals.
Post Holdings Inc. (POST) – JP Morgan lifted its target to $131 from $122, citing M&A potential, cost savings, and buybacks.
Public Storage (PSA) – Withdrew a $1.41B takeover offer for Australia’s Abacus Storage King, with no reasons disclosed.
Semtech Corp. (SMTC) – Piper Sandler raised its target to $65 from $55 on strength in FiberEdge and LoRa businesses.
Skyworks Solutions Inc. (SWKS) – Named Philip Carter (ex-AMD) as CFO, effective Sept. 8, replacing interim CFO Robert Schriesheim.
Tesla Inc. (TSLA) – Rejected a $60M settlement in a 2019 fatal Autopilot crash case; a jury later awarded $243M in damages.
Ulta Beauty Inc. (ULTA) – Jefferies raised target to $550 from $425, citing strong brand launches and robust beauty demand.
Xylem Inc. (XYL) – TD Cowen raised target to $130 from $125, citing cost savings and municipal spending tailwinds.
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Interesting breakdown today — theBlog comment creation guide divergence between Canadian banks lifting the TSX and energy stocks dragging it down really highlights how sector strength can mask underlying weakness. I’m also curious to see if Nvidia’s earnings tomorrow spark a broader rally or just reinforce the existing tech-heavy momentum. The European political risk angle is a good reminder that global instability can shift investor sentiment quickly, even when earnings news looks strong elsewhere.