Global Market Update
Canadian Markets
Canada’s main stock indexes posted moderate gains despite downward pressure on mining stocks, which retreated alongside falling gold prices. Deloitte Canada issued a stark warning, stating that the nation’s economy is likely headed for a modest economic downturn in the second and third quarters of 2025. The report highlights deteriorating business confidence and stalled investment activity as key indicators of underlying economic fragility. The Financial Accountability Office of Ontario (FAO) issued a research report, and forecasted that lost jobs due to U.S. tariffs could erase 68,100 jobs in Ontario in 2025, then rising to 119,200 in 2026 and 137,900 in 2029.
American Markets
U.S. stock markets advanced as investors responded positively to strong quarterly earnings from tech giants Microsoft and Meta Platforms. These companies reported better-than-expected results, driven largely by ongoing growth in artificial intelligence (AI) applications, particularly in cloud computing services and digital advertising. Microsoft’s Azure platform and Meta’s ad revenue gains underscored how AI is reshaping core business areas and enhancing profitability. The strong performances helped boost investor confidence at a time when uncertainty around the direction of U.S. trade policy—especially in light of potential new tariffs and global trade tensions—has created volatility in the markets. The tech sector’s resilience served as a stabilizing force, reinforcing the view that AI-led innovation remains a key driver of corporate growth and market optimism, which helped drive Nvidia’s stock higher on intraday trading.
European Markets
European stock markets remained closed due to the May Day holiday, though U.K. markets ended flat as traders digested mixed corporate earnings. The Bank of England signaled the possibility of accelerated interest rate cuts in response to evolving risks tied to U.S. tariffs. Among notable movers, Rolls-Royce Holdings gained ground after reaffirming its 2025 profit targets, suggesting that some companies remain resilient despite mounting global pressures.
Corporate Stock News
Aflac Inc: Missed Q1 profit estimates due to a 5% drop in Japanese premiums. Reported adjusted EPS of $1.66 vs. $1.67 expected. Total revenue was $3.4B, below the $4.28B estimate.
Air Products and Chemicals Inc: Cut annual profit forecast due to lower volumes and higher costs. Now expects FY adjusted EPS of $11.85–$12.15 (previously $12.70–$13.00). Q2 adjusted EPS of $2.69 missed the $2.83 estimate.
Albemarle Corp: Maintained 2025 outlook despite tariffs. Reported Q1 net loss of $340K. Energy Storage revenue fell by $276.3M due to a 34% drop in lithium prices. Adjusted EPS was a loss of $0.18 vs. expected $0.59 profit.
Alcoa Corp: Q2 order book remains strong despite tariffs. Power outage in Spain poses risks. U.S. aluminum import tariffs expected to cost ~$90M in Q2.
Align Technology Inc: Beat Q1 estimates and raised 2025 revenue growth forecast to 3.5%–5.5%. Q1 revenue was $979.3M (vs. $975.24M est.), with adjusted EPS of $2.13 (vs. $1.99 est.).
Allstate Corp: Q1 profit fell 52.4% due to $2.22B in catastrophe losses, mainly from California wildfires. Net profit was $566M, down from $1.19B. Revenue rose 7.8% to $16.45B.
Alimentation Couche-Tard Inc: Signed NDA with Seven & i for $47B takeover talks. NDA includes standstill clause, preventing hostile takeovers.
Ansys Inc: Missed Q1 estimates with revenue of $504.9M (vs. $520.9M est.) and adjusted EPS of $1.64 (vs. $1.68 est.). Acquisition by Synopsys expected to close in H1 2025.
AvalonBay Communities Inc: Forecasted Q2 core FFO below estimates, expecting $2.72–$2.82 per share. Q1 core FFO was $2.83, in line with estimates. Residential revenue rose 3%.
Biogen Inc: Beat Q1 estimates with EPS of $3.02 (vs. $2.52 est.) and revenue of $2.43B (vs. $2.23B est.). MS drug sales fell 11%, while rare disease drug sales rose 33%.
Bombardier Inc: Q1 revenue rose 19% YoY to $1.52B on increased jet deliveries and aftermarket services. Now expects >150 jets delivered in 2025. Issued 2025 guidance of >$9.25B revenue and $500–$800M free cash flow.
C.H. Robinson Worldwide Inc: Beat Q1 EPS estimates with $1.17 (vs. $1.04 est.) despite revenue dropping 8.3% to $4.05B. Gained new business in forwarding and improved North American transport margins.
Canadian Pacific Kansas City Ltd: CIBC cut price target to C$119 from C$124 after company lowered 2025 EPS guidance.
Cognizant Technology Solutions Corp: Raised FY revenue forecast to $20.5B–$21B. Q1 revenue was $5.12B (vs. $5.11B est.) and adjusted EPS was $1.23 (vs. $1.20 est.).
CVS Health Corp: Raised FY profit forecast to $6–$6.20 per share. Q1 EPS was $2.25 (vs. $1.70 est.). Medical loss ratio improved to 87.3% from 90.4%. Revenue from pharmacy and health services segments beat estimates.
eBay Inc: CFO Steve Priest to step down in May; Peggy Alford (from PayPal) to replace him. Q1 revenue was $2.59B (vs. $2.55B est.), and adjusted EPS was $1.38. Q2 revenue guidance midpoint above analyst estimates.
Loblaw Companies Ltd: CIBC raised price target to C$234 from C$208, citing strong Q1 results, diversified assets, and growth potential.
Rogers Communications Inc: JPMorgan raised price target to C$55 from C$53 due to improved execution and asset sales in Shaw legacy footprint.
TC Energy Corp: Missed Q1 profit estimates due to a 30% drop in adjusted core profit in its power and energy solutions unit. Q1 EPS was C$0.95 vs. C$0.97 expected. Owns 10 power facilities totaling 4,600 MW.
Thomson Reuters Corp: Reaffirmed 2025 guidance despite economic turmoil. Q1 revenue rose 1% to $1.9B (vs. $1.93B est.). Organic revenue up 6%, with “Big 3” segments up 9%. Expects 7% Q2 organic revenue growth
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.
