Global Market Update
Canadian Markets
Canada’s main stock index ended slightly higher on Tuesday, lifted by a rally in the energy sector as crude oil prices surged, which helped offset concerns stemming from disappointing domestic economic data. According to Ivey Purchasing Managers Index (PMI) figures, Canadian economic activity shrank in April, with the seasonally adjusted index falling to 47.9 from 51.3 in March—marking its weakest reading since January. Employment also declined for the second consecutive month, adding to signs of a slowing economy.
American Markets
American stocks dropped as renewed trade tensions and weak earnings reports dampened investor confidence, and sent traders to the sidelines. The decline followed comments by President Donald Trump, who suggested the possibility of imposing tariffs on pharmaceutical products—a move that reignited fears of escalating trade conflicts, particularly with key trading partners such as China and the European Union.
One of the catalysts of the sell off, was the underwhelming quarterly results from several major corporations, which fell short of analysts’ expectations. These earnings disappointments raised doubts about the strength of corporate profitability and the resilience of consumer demand amid a volatile economic environment.
European Markets
European markets broadly declined, with Germany’s DAX underperforming after conservative leader Friedrich Merz failed to secure enough parliamentary support to become chancellor, deepening political uncertainty. Ireland projected slower GDP growth for 2025, down to 2%, reflecting a more cautious economic outlook.
UK markets closed largely flat, as business activity declined for the first time since October 2023 due to growing global trade tensions. Britain and India just finalized a landmark trade deal between the two countries which is hoped to mitigate some of the tariff effects.
Corporate News
Air Lease Corp: Reported Q1 revenue of $738M, exceeding expectations of $710M. Net income surged to $364.8M ($3.26/share) from $97.4M ($0.87/share) a year ago, driven by high aircraft demand. May acquire more aircraft if deals are favorable.
Alphabet Inc: The DOJ is pushing Google to divest AdX and DFP, citing monopolistic practices in digital advertising following a federal court ruling.
Alphabet Inc & Magna International Inc: Waymo, a subsidiary of Alphabet, is building a new factory in Mesa, Arizona with Magna to produce autonomous Jaguar I-PACE and Zeekr vehicles. Waymo One is scaling operations with plans to enter Atlanta, Miami, and Washington D.C. by 2026.
Ball Corp: Raised its full-year profit growth forecast to 11–14% (from >10%) after Q1 revenue rose 7.8% to $3.10B. EPS of $0.76 beat expectations; aluminum packaging demand remained resilient despite tariffs.
Bristol Myers Squibb Co: Plans to invest $40B in the U.S. over five years across R&D, tech, and manufacturing, preparing for tariff-related impacts.
Celanese Corp: Beat Q1 profit estimates with EPS of $0.57 (vs. $0.38 expected), helped by cost cuts and lower SG&A expenses. Plans to spin off its electronics segment.
Clorox Co: Cut its annual sales forecast due to weak consumer demand amid tariff-driven uncertainty. Q1 sales dropped 8% to $1.67B; EPS of $1.45 missed estimates.
Corpay Inc: British firm Alpha Group rejected Corpay’s all-cash acquisition proposal.
Coterra Energy Inc: Q1 net income rose to $516M ($0.68/share) on higher production, though CAPEX for 2025 was reduced due to macro uncertainty.
Diamondback Energy Inc: Lowered 2025 output forecast and CAPEX budget amid economic instability and rising OPEC+ supply. Q1 profit of $4.54/share beat estimates; production jumped 84.5% following Endeavor acquisition.
DoorDash Inc: Will acquire Deliveroo for $3.85B, aiming to expand European market share. Combined 2024 orders were ~$90B, with 49M monthly users.
Duke Energy Corp: Q1 revenue of $8.25B beat expectations. Electric utilities profit rose to $1.28B; gas utilities reached $349M. EPS of $1.76 topped consensus.
Ford Motor Co: Suspended annual guidance due to $1.5B tariff impact. Q1 EPS of $0.14 beat expectations (est. $0.02) but down from $0.49 YoY. Revenue was $40.7B.
IAC Inc: Reported Q1 EBITDA of $50.9M (up from $5.5M YoY) due to lower costs. Revenue fell to $570.5M. Dotdash Meredith’s digital ad revenue rose 7%.
International Business Machines Corp (IBM): Promoting AI tools to manage and integrate AI agents from third-party platforms. CEO Krishna emphasized helping clients integrate and customize.
KKR & Co Inc: Co-founder George Roberts urged calm amid trade uncertainty and predicted eventual trade deals.
Magna International Inc: Partnering with Waymo to produce autonomous EVs in Arizona, contributing to Waymo One’s expansion.
Marathon Petroleum Corp: Swung to a Q1 loss of $74M ($0.24/share) due to lower refining margins and maintenance activity, down from $937M profit last year.
Mattel Inc: Withdrew annual guidance citing tariffs and economic volatility. Q1 sales beat estimates at $827M; EPS loss of $0.03 was smaller than forecast.
Mercer International Inc: CIBC lowered its target price to $5 from $6 due to global pulp demand uncertainty amid worsening U.S.-China trade relations.
Palantir Technologies Inc: Raised FY2025 revenue forecast to $3.89–$3.90B, above prior guidance. Modest Q1 beat and inline profit disappointed investors.
Realty Income Corp: Lowered FY2025 EPS guidance to $1.40–$1.46, citing market volatility. Adjusted FFO guidance was maintained. Q1 revenue of $1.38B beat expectations.
Rivian Automotive Inc: Rivian announced a $120 million investment to build a supplier park near its Illinois plant, aiming to support production of its upcoming, more affordable R2 SUVs starting next year. The park will lower logistics and warehousing costs and create hundreds of jobs, including about 100 at Rivian. CEO RJ Scaringe said the project will help boost production in 2026 when the company adds R2 models alongside its existing R1 and commercial vans.
Vertex Pharmaceuticals Inc: Missed Q1 estimates as Trikafta sales underwhelmed at $2.53B. Revenue and EPS fell short of expectations; full-year guidance remains intact.
Williams Companies Inc: CEO Alan Armstrong to retire July 1, replaced by Chad Zamarin. Raised FY2025 adjusted profit outlook to $7.5–$7.9B. Q1 revenue rose 10% to $3.05B; EPS of $0.60 beat estimates.
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