Global Market Update
Canadian Markets
Canada’s main stock index rose on Friday,, on the back of a rise in oil and gold prices. However, the country’s labor market showed signs of strain, particularly due to the ongoing trade concerns. According to data from Statistics Canada released on Friday, the unemployment rate unexpectedly climbed to 6.9% in April. This was attributed in part to a decline in manufacturing jobs, a sector directly impacted by global trade tensions, as a result only 7,400 net jobs were added during the month.
The weaker-than-expected job figures have led many economists to suggest that a rate cut from the Bank of Canada (BoC) could be on the horizon. A potential interest rate reduction in June is becoming more likely as the BoC looks to stimulate the economy and offset the negative effects of the trade war, particularly on Canadian manufacturing.
American Markets
U.S. stocks showed a mixed performance on Friday. Traders were seen taking profits following a strong run in recent weeks, especially ahead of the weekend. However, optimism was bolstered by President Donald Trump’s suggestion that he might slash tariffs on China by as much as 80%, which could ease trade tensions and have a positive impact on global markets.
European Markets
European shares, on the other hand, posted gains, with Germany’s benchmark index hitting an all-time high. This was driven by optimism surrounding potential trade agreements.
In the UK, stocks rose, particularly in the commodity sector, following comments from the Bank of England’s chief economist, who downplayed the importance of USA. and UK trade deal.
Corporate Stock News
Air Canada:
Lowered its annual adjusted core profit forecast and reported first-quarter revenue of C$5.19 billion, down 1% from last year and below estimates of C$5.29 billion. Reported a first-quarter adjusted loss of C$0.45 per share, wider than C$0.27 but smaller than the expected loss of C$0.54.
Alphabet Inc:
Italy’s Moltiply Group sued Google, seeking $3.34 billion in damages for abuse of market position. The claim alleges that Google hindered the growth of its subsidiary 7Pixel from 2010 to 2017.
Boeing Co:
IAG plans to buy 71 long-haul aircraft from Airbus and Boeing, including 32 Boeing 787-10 aircraft. This order follows a trade deal between Britain and the U.S.
Cadence Bank:
Analyst Update: KBW raises the target price to $40 from $38 after announcing its second deal of the year with the acquisition of Industry Bancshares.
Coinbase Global Inc:
Reported a drop in first-quarter profit due to rising operating expenses, despite transaction revenue rising 17.3% to $1.26 billion. Total revenue increased to $2.03 billion, missing the $2.1 billion estimate. Adjusted net income was $526.6 million, or $1.94 per share.
Analyst Update: JPMorgan cuts COIN target price to $215 from $276, anticipating lower trading and staking revenue.
CoStar Group Inc:
To acquire Domain for $1.92 billion, aiming to rival News Corp’s REA. CoStar previously acquired a 16.9% stake in Domain.
Delta Air Lines Inc:
Delta and Korean Air Lines to acquire a 25% stake in Canada’s WestJet Airlines for $550 million. Delta will invest $330 million for a 15% stake, and Korean Air will inject $220 million for a 10% interest.
Expedia Group Inc:
Missed revenue estimates for the first quarter, reporting $2.98 billion versus $3.01 billion expected. Gross bookings rose 4% to $31.45 billion.
Analyst Update: Piper Sandler cuts EXPE target price to $135 from $174 after mixed results.
Federal Realty Investment Trust:
Reported first-quarter FFO of $1.70 per share, beating the estimate of $1.69. Raised annual FFO forecast to $7.11 – $7.23 per share.
Ford Motor Co, General Motors Co & Stellantis NV:
The carmakers criticized a trade deal between the U.S. and the U.K., arguing it disadvantages American automakers.
Hubspot Inc:
Analyst Update: Piper Sandler raises HUBS target price to $645 from $535, citing solid execution and AI potential.
Insulet Corp:
Beat first-quarter profit estimates driven by demand for wearable insulin pumps, with revenue up 28.8% to $569 million.
Kraft Heinz Co:
Asked coffee suppliers for a 60-day notice before price hikes due to tariffs. The company aims to offset tariff impacts.
Lyft Inc:
Expanded its stock buyback program to $750 million and reported a first-quarter revenue increase of 13.5% to $1.45 billion.
Mattel Inc:
Appointed Paul Ruh as CFO, formerly of Kenvue.
McKesson Corp:
Forecast fiscal 2026 profit mostly above estimates, planning to spin off its medical-surgical solutions unit.
Microchip Technology Inc:
Forecast first-quarter revenue above estimates, signaling recovery in chip demand.
Monster Beverage Corp:
Reported a fall in first-quarter revenue as consumers reduced spending on energy drinks. Revenue fell to $1.85 billion, missing the $1.98 billion estimate.
MP Materials Corp:
Swung to a first-quarter loss due to higher production costs and interest expenses, reporting a net loss of $22.6 million.
News Corp:
Third-quarter revenue and profit beat estimates, driven by growth in Dow Jones and online real estate services.
Nutrien Ltd:
Issued a bullish outlook for the 2025 global fertilizer market despite disappointing first-quarter results.
Nvidia Corp:
Plans to release a downgraded version of its H20 AI chip for China after U.S. export restrictions on the original model.
Onex Corp:
Delta Air Lines and Korean Air Lines to acquire a 25% stake in WestJet from Onex for $550 million.
Paramount Global:
Quarterly revenue of $7.19 billion beat estimates, driven by growth in streaming and filmed entertainment.
Pinterest Inc:
First-quarter revenue rose to $855 million, beating estimates of $846.6 million.
Analyst Update: JPMorgan raises PINS target price to $35 from $30, citing healthy trends and improved profitability.
Premium Brands Holdings Corp:
Desjardins raises the target price to C$98 from C$93, anticipating growth from margin expansion.
Solventum Corp:
Beat profit estimates due to higher sales of wound care and sterilization products.
Sun Life Financial Inc:
First-quarter profit rose, driven by growth in Asia and wealth management. Net income was C$928 million, or C$1.62 per share.
Trade Desk Inc:
Posted first-quarter revenue of $616 million, beating the $584 million estimate. Adjusted earnings per share were 33 cents, above the 25 cents expected.
Wolfspeed Inc:
Reported third-quarter revenue of $185.4 million, slightly missing the $185.9 million estimate. Forecasts 2026 revenue below estimates.
Workday Inc:
Awarded a contract for a cloud-based HR platform to replace the federal in-house system without competitive bidding.
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.
