Global Markets (AAPL) (META) (MSFT) (NVDA)
Canadian Markets
Canada’s main stock index traded lower in the afternoon, influenced by geo-political risks. The energy sector moved higher on rising oil prices as analysts anticipate crude prices will remain elevated. Traders are starting to take profits as the disconnect between financial markets and the economy are wearing thin. Data is showing that Canadian seniors are buckling under the rapid rising costs, while being limited to fixed income. Trump early today mentioned Canada might have to incur more tariff exposure, despite positive earlier conversations over a possible trade deal.
American Markets
American stocks traded Tuesday in the red, as traders responded to a risk off environment over the evolving risks iin the middle east, which is damping the recent bullish sentiment in the market.
Data revealing U.S. retail sales fell 0.9% in May, also further reduced positive sentiment, as the drop surpassed economists’ expectations for a 0.6% decline. The decrease was primarily driven by a 2% drop in gasoline sales, a 3.5% slide in auto purchases, and a 2.7% decline in building materials. This marks the second consecutive month of retail sales decline, suggesting that consumers are becoming more cautious amid ongoing trade uncertainties, and geo-political risks.
European Markets
European equities tumbled to a near one-month low as the escalating conflict between Iran and Israel entered its fifth day. The pan-European STOXX 600 index fell 0.8%, with investor sentiment weighed down by the geopolitical unrest. Despite this, German investor morale improved more than expected in June, driven by stronger demand and policy support.
UK stocks ended lower in a broad-based selloff, with the FTSE 100 index closing 0.4% lower. More than 70% of its components recorded losses, reflecting investor concerns over the Middle East conflict and its potential for economic implications. Additionally, the British pound weakened against the U.S. dollar, further indicating heightened risk aversion in financial markets.
Corporate News
Alphabet Inc. (GOOGL)
Jefferies Financial Group has reduced its price target for Alphabet from $235 to $200, citing challenges in the digital advertising sector.
Amazon.com Inc. (AMZN)
Amazon’s Prime Day 2025 is scheduled from July 8 to July 11, marking its longest duration yet. The event will feature millions of discounts across various categories.
Apple Inc. (AAPL)
A federal judge in California has revived a proposed class action against Apple, alleging the company illegally monopolized the market for digital storage through its iCloud service. STA Research re-initiated their “Speculative Buy” rating on Apple’s stock, with a 12 month target forecast of $230 per share.
Eli Lilly & Co. (LLY)
Eli Lilly has announced plans to acquire gene-editing startup Verve Therapeutics for up to $1.3 billion. The deal includes an upfront cash payment of $10.50 per share, with an additional $3 per share contingent on the initiation of a Phase 3 trial. Verve’s stock surged over 74% following the announcement.
KKR & Co. Inc. (KKR)
KKR has agreed to acquire Australian power producer Zenith Energy. The acquisition marks the latest infrastructure investment in the Asia-Pacific region by KKR, a firm known for its long track record in the renewables sector.
MarketAxess Holdings Inc. (MKTX)
MarketAxess has launched electronic trading services for Indian government bonds, making it the first platform to give foreign investors direct access to the market. The platform will be linked to the Clearing Corporation of India’s trading system NDS-Order Matching platform.
Microsoft Corporation (MSFT)
OpenAI executives have considered accusing Microsoft of anticompetitive behavior in their partnership, potentially seeking a federal regulatory review of their contract for potential violations of antitrust law.
Meta Platforms Inc. (META)
Jefferies has raised its price target for Meta Platforms from $715 to $810, citing strong momentum in the company’s business and its efforts to enhance platforms through artificial intelligence. STA Research re-initiated their “Hold” rating on Meta’s stock, with a 12 month target forecast of $650 per share.
Nvidia Corporation (NVDA)
Nvidia will attend the China International Supply Chain Expo in Beijing for the first time. The expo provides an opportunity for foreign participants to demonstrate commitment to the Chinese market. STA Research maintained the “Speculative Buy” rating on Nvidia’s stock, with a 12 month target of $165 per share.
RTX Corporation (RTX)
European low-cost carrier Wizz Air has selected RTX’s Pratt & Whitney as the engine supplier for 177 of its Airbus narrowbody jets. The new engines will be equipped on the carrier’s A321neo aircraft that are on order.
Sage Therapeutics Inc. (SAGE)
Piper Sandler has cut its price target for Sage Therapeutics from $9.00 to $8.50, following the announcement that Supernus will acquire the company.
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.
