Global Markets
Canadian Markets
Canada’s TSX traded flat on Friday, as a recent survey by the Business Council of Canada (BCC), conducted on May 6, found that a majority of Canadian business leaders anticipate the domestic economy will deteriorate over the next six months. The decline in short-term economic optimism is attributed to persistent geopolitical tensions, sluggish global growth forecasts, and a more restrained approach to capital investment. Some analysts are forecasting 3 more rate cuts from the Bank of Canada this year in order to respond to the economy as the decline in growth will accelerate towards year end.
American Markets
U.S. markets dropped as investors grew increasingly concerned about the rising national debt burden and renewed trade tensions. President Donald Trump will be imposing a 50% tariff on all goods imported from the European Union starting June 1, citing stalled negotiations. The tariff threat sent risk-averse investors to the sidelines.
European Markets
European markets were notably rattled by the announcement of tariff’s on their company’s products. The euro surrendered earlier gains, and eurozone government bond yields fell sharply as traders flocked to safer assets. The Stoxx Europe 600 Autos Index dropped by over 3%, with carmakers particularly exposed to tariff risks.
UK markets also ended lower, though the British pound edged higher, buoyed by unexpectedly strong domestic economic data. UK retail sales for April rose 1.2%, significantly above forecasts, and GfK’s consumer confidence index showed improving sentiment, suggesting consumers are becoming more resilient despite trade headwinds.
Corporate Stock News
Apple Inc
Apple plans to release smart glasses by late 2025, according to Bloomberg. Production of prototypes is expected to begin later this year. Apple has reportedly shelved plans for a smartwatch with a built-in camera.
Autodesk Inc
Autodesk raised its fiscal 2026 revenue forecast to $6.93–$7 billion and adjusted EPS to $9.50–$9.73. It also expects Q2 revenue of $1.72–$1.73 billion, beating estimates. Q1 revenue was $1.63 billion, surpassing expectations.
Canadian Pacific Kansas City Ltd
Bill Ackman’s Pershing Square exited its position in Canadian Pacific “with regret” to fund a new investment in Amazon, citing strong long-term confidence in CP despite the sale.
Copart Inc
Q3 revenue and income missed estimates due to weak vehicle sales and higher expenses. Total revenue was $1.21B (vs. $1.23B est.), and net income was $406.6M. JPMorgan cut its target price to $55 from $60.
Deckers Outdoor Corp
Deckers withdrew annual guidance due to tariff uncertainty and forecasted lower-than-expected Q1 sales. Shares declined post-earnings. The board approved a $2.25B stock buyback increase.
Intuit Inc
Intuit beat Q3 earnings and revenue expectations and raised its annual growth forecast to 15%. It plans to launch AI agents for QuickBooks. Jefferies raised its target price to $850 from $735.
International Paper Co
International Paper will close five UK packaging sites, affecting 300 jobs, citing market challenges following its acquisition of DS Smith. Strategic changes are expected to complete by year-end.
Microsoft Corp
The FTC dropped its challenge to Microsoft’s $69B Activision Blizzard acquisition. Microsoft hailed the decision as a win for gamers and “common sense” in D.C.
PepsiCo Inc
The FTC dropped a price discrimination lawsuit against PepsiCo related to Walmart. FTC Chair Andrew Ferguson criticized the case as a misuse of taxpayer money.
Ralph Lauren Corp
JPMorgan raised the price target to $355 from $342, reflecting updated FY2026 EPS expectations based on the company’s guidance.
Ross Stores Inc
Ross withdrew FY2025 guidance due to tariff impacts and forecast lower-than-expected Q2 earnings. Shares fell post-earnings. JPMorgan cut its target price to $141 from $161.
United States Steel Corp
A U.S. panel was split on Nippon Steel’s proposed $14B acquisition of U.S. Steel but believed security concerns could be addressed. President Trump has 15 days to decide on the deal.
Weyerhaeuser Co
Weyerhaeuser will acquire 117,000 acres of timberlands in NC and VA for $375M. The deal supports growth in its Southern Timberlands unit and is expected to close in Q3.
Workday Inc
Workday forecast Q2 subscription revenue of $2.16B, in line with estimates. Q1 total revenue was $2.24B (vs. $2.22B est.). EPS of $2.23 beat estimates. The company announced a $1B stock buyback.
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.
