Global Market Update
Canadian Markets
Canadian stocks moved higher on Friday, supported by a rise in gold prices, despite a dip in oil. Imperial Oil reported strong first-quarter earnings, helping to support sentiment in the energy sector despite falling crude prices.
Data showed Vancouver home sales continued to decline in April, highlighting ongoing weakness in the Canadian real estate sector, exacerbated by the broader impacts of the trade war.
General Motors announced it will scale back production at its Oshawa, Ontario assembly plant, reverting to a two-shift schedule. The company cited “expected reduced demand” and “the evolving trade environment” as reasons for the cut. This move comes shortly after Stellantis decided to shift some of its auto production to avoid U.S. tariffs.
American Markets
U.S. stock markets surged after a better-than-expected April jobs report. The U.S. economy added 177,000 nonfarm payrolls, surpassing economists’ forecast of 138,000. The unemployment rate remained steady at 4.2%, reinforcing hopes that the economy remains resilient despite global uncertainties.
Market sentiment was also buoyed by signs of a possible thaw in U.S.-China trade tensions. Beijing announced it is “evaluating” an offer from Washington to engage in talks, sparking optimism that a de-escalation might be near.
Data released has shown Investors appear to be rotating out of U.S. equities, redirecting funds toward Japanese and European stocks, according the Bank of America.
European Markets
European stock markets jumped over 2%, buoyed by easing tensions between the U.S. and China and a strong U.S. jobs report. Gains were driven largely by industrials and technology shares, both sectors up more than 2%.
Inflation in the eurozone held steady at 2.2% in April, according to flash estimates, suggesting price stability despite global trade headwinds.
UK stocks rose, with analysts projecting more upside for the FTSE 100. However, economic data painted a troubling picture. The S&P Global UK Manufacturing PMI for April stood at 45.4, well below the 50.0 threshold that signals expansion, marking the seventh straight month of contraction. Although slightly better than March’s 44.9, the index still indicates a deep downturn in the UK’s manufacturing sector.
The UK government announced plans to ban consumers from borrowing to invest in cryptocurrencies, signaling a more cautious approach to speculative investments.
Corporate Stock News
Airbnb Inc: ABNB forecast Q2 revenue of $2.99B–$3.05B, slightly below estimates. Bookings rose 8% globally. Q1 revenue increased 6% to $2.27B; net income fell 41.7% to $154M due to higher costs and write-downs.
Amazon.com Inc: Reported Q1 cloud revenue of $29.27B, below estimates. Forecasts Q2 operating income below expectations. Total Q1 revenue was $155.7B; expects Q2 net sales of $159B–$164B. Ad sales rose 19% to $13.92B.
American International Group Inc (AIG): Q1 adjusted EPS fell to $1.17 from $1.25 due to $525M in catastrophe losses, mainly from California wildfires. Beat analyst estimates of $0.99 EPS.
Amgen Inc: Q1 profit rose 24% to adjusted EPS of $4.90, beating estimates. Revenue rose 9% to $8.1B. Maintains full-year EPS forecast of $20.00–$21.20. Considers tariffs but excludes future levies.
Apollo Global Management Inc: Q1 profit rose 5% to $1.82 per share. AUM rose 17% to $785B. Fee-related earnings grew 21%; spread-related earnings dipped 1.6%.
Apple Inc: Q2 EPS of $1.65 on $95.36B in revenue beat expectations. iPhone sales hit $46.84B. Forecasts 4.28% Q3 revenue growth. Gross margins expected at 45.5%–46.5%. Buyback program trimmed by $10B.
Arthur J. Gallagher & Co: Q1 profit rose to $816.1M or $3.13 per share, from $652.6M or $2.92 per share. Revenue from commissions and fees climbed to $2.87B.
Barrick Gold Corp: Bernstein cut its target price to C$43 from C$45 to reflect exchange rates and update cost forecasts before Q1 results.
Block Inc: Q1 EPS of 56 cents missed estimates of 87 cents. Cut 2025 profit forecast. Bitcoin investment losses and muted consumer spending weighed on results. Cash App profit growth slowed to 10%.
Bombardier Inc: CIBC raised target price to C$115 from C$106 due to stronger-than-expected demand trends.
Camden Property Trust: Forecasts 2025 FFO of $6.53–$6.83 per share, below average estimate. Q1 FFO was $1.70, beating expectations. Acquired apartment communities in Nashville and Austin.
Canadian National Railway Co: JPMorgan cut target price to C$162 from C$170, citing concerns over U.S.-China trade impact on intermodal traffic.
Chevron Corp: Q1 EPS of $2.18 met expectations. Buybacks projected between $11.5B–$13B in 2025. Upstream earnings fell to $3.76B from $5.24B YoY.
Cigna Group: Raised FY earnings forecast to at least $29.60/share. Q1 EPS of $6.74 beat estimates; Evernorth unit revenue up 16% to $53.68B.
Consolidated Edison Inc: Plans $72B in capital investments over 10 years. Beat Q1 EPS estimates with $2.26 vs $2.20 expected.
Dexcom Inc: Q1 revenue rose 12% to $1.04B; EPS of 32 cents slightly missed. Reaffirmed FY revenue forecast of $4.6B. Margins expected at 62%, down from 64–65%.
Duolingo Inc: Forecasts Q2 revenue of $238.5M–$241.5M, above estimates. FY revenue forecast raised to $987M–$996M. Adjusted core profit guidance also increased.
DuPont de Nemours Inc: Beat Q1 profit expectations with 4.6% sales growth. Warned of $60M annual hit from tariffs but maintained EPS forecast of $4.30–$4.40.
Magna International Inc: MG Q1 adjusted EPS of 78 cents missed 90-cent estimate. Sales fell 8.2% to $10.07B but beat estimates. Cost-saving plan underway after Jaguar halted key model production.
TC Energy Corp: CIBC raised target price to C$76 from C$71 amid expected project announcements to meet natural gas demand.
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.
