Global Markets
Canadian Markets
Canadian markets traded sharply lower on Tuesday, with the S&P/TSX Composite Index down 1.5%, as investors engaged in broad-based profit-taking ahead of the federal government’s upcoming budget proposal. Market participants are awaiting clarity on the fiscal outlook, potential changes to taxation, and new spending initiatives that could influence corporate earnings and consumer demand.
Losses were widespread across most sectors, led by energy, financials, and materials, as investors turned risk-averse following the recent rally in Canadian equities. Energy names declined alongside softer crude prices, while major banks faced pressure amid concerns over slower credit growth and elevated funding costs. Mining and materials stocks also weakened as base metal prices slipped, reflecting uncertainty around global industrial demand.
American Markets
US stocks dropped significantly, led by the Nasdaq, as investors were spooked by concerns from the CEO’s of banks on elevated valuations in the technology sector. Sentiment has suddenly turned risk-averse about a possible tech-led correction that could range between 10 to 20 percent. Palantir Technologies’ stock cratered on disappointing sales forecasts which further dampened enthusiasm for artificial intelligence-related stocks.
Bitcoin tumbled more than 5%, as traders moved to reduce exposure to all risk assets amid mounting concerns over a weakening global economic outlook and tighter financial conditions. IBM announced plans to cut thousands of roles as part of a strategic shift toward accelerating growth in its software and AI divisions.
European Markets
European markets closed lower due to profit-taking after a strong, tech-driven rally that had recently pushed several indexes to record highs. Hugo Boss missed its quarterly sales forecast, citing weaker demand in China and the UK, further weighing on European sentiment over concerns of a weakening consumer.
UK stocks rose slightly, as the UK’s FTSE 100 managed to defy the broader global sell-off, closing modestly higher as strength in healthcare and defensive sectors offset weakness in cyclical stocks. Investor sentiment in London was buoyed by gains in major pharmaceutical companiess, which benefited from renewed demand for defensive plays amid global market volatility. The British pound weakened to multi-month lows, providing a tailwind for the FTSE 100, as many of its constituent companies generate a significant portion of their earnings overseas.
Corporate Stock News
Acadia Healthcare Co. (ACHC): Leerink Partners lowered its price target to $25 from $38 due to weaker patient volumes, facility closures, and higher startup costs pressuring earnings despite attractive valuation levels.
Air Lease Corp. (AL): Reported a stronger third-quarter profit of $1.21 per share versus $0.82 a year ago, benefiting from high leasing rates and robust demand amid Boeing and Airbus production delays.
Alphabet Inc. (GOOGL) & Walt Disney Co. (DIS): YouTube TV is negotiating with Disney to restore ABC and ESPN networks ahead of Election Day, after Disney requested reinstatement for public coverage purposes.
Altria Group Inc. (MO): Jefferies cut its target price to $47 from $50 on weakening premium cigarette sales, accelerated oral tobacco declines, and intensifying competition from nicotine pouch rivals like ZYN and Velo.
Apollo Global Management Inc. (APO): Posted stronger-than-expected third-quarter earnings of $2.17 per share on rising assets under management, strong debt origination, and performance fees, bringing AUM to $908 billion.
Archer-Daniels-Midland Co. (ADM): Cut its 2025 earnings forecast to $3.25–$3.50 per share, citing weaker crush margins and U.S. biofuel policy delays, but maintained optimism for growth into 2026.
BP plc (BP): Reported smaller-than-expected profit declines as refining margins improved; operating cash flow rose to $7.8 billion, with record performance in its customer division and stable net debt of $26 billion.
Clorox Co. (CLX): Exceeded profit expectations with adjusted EPS of $0.85 vs. $0.79 estimated, supported by strong cleaning product demand despite lower revenue due to inventory timing adjustments.
Coterra Energy Inc. (CTRA): Missed earnings estimates with EPS of $0.41 versus $0.44 expected, as lower oil prices offset increased production; raised its annual production forecast.
CT REIT (CRT-UN:CA): Scotiabank raised its target to C$17 from C$16.50 following in-line Q3 results, modest NAVPU gains, and steady income visibility underpinned by high occupancy levels.
Delta Air Lines Inc. (DAL): The U.S. government asked a court to deny Delta and Aeromexico’s appeal to delay an order ending their joint venture over U.S.–Mexico routes amid regulatory scrutiny.
Denny’s Corp. (DENN): Agreed to be acquired by TriArtisan Capital Advisors and partners for $620 million ($6.25 per share), a 52% premium, sending shares higher in after-hours trading.
Diamondback Energy Inc. (FANG): Beat earnings expectations with adjusted EPS of $3.08 versus $2.93 forecast, and sold non-Permian assets for $670 million to streamline operations.
Domino’s Pizza Group (DOM:LSE): Reported higher Q3 sales on price increases and new menu items but warned of soft demand into 2026 due to UK tax concerns; maintained profit guidance.
Eagle Bancorp Inc. (EGBN): CEO Susan Riel to step down in 2026 after six years leading the bank through credit challenges and recent losses amid office loan exposure.
Eastman Chemical Co. (EMN): Issued a cautious 2025 profit forecast of $5.40–$5.65 per share, slightly below consensus, citing tariff uncertainty and soft consumer demand.
Eaton Corp. (ETN): Acquiring Boyd Corporation’s thermal business for $9.5 billion from Goldman Sachs to expand its data center capabilities amid soaring AI-driven energy demand.
Hims & Hers Health Inc. (HIMS): Beat estimates with revenue of $600 million vs. $580 million forecast, driven by 21% subscriber growth and higher average revenue per user.
IAC Inc. (IAC): Missed Q3 revenue expectations at $589.8 million vs. $601.6 million forecast, hurt by Google algorithm changes and weaker ad traffic.
Idexx Laboratories Inc. (IDXX): JPMorgan raised its target to $775 from $675 following stronger quarterly results and growing demand for its veterinary diagnostic systems.
KKR & Co. Inc. (KKR): Co-CEO Joe Bae said half of the firm’s 2025 private equity returns will come from Asia, signaling a rebound in regional liquidity and exits.
Koninklijke Philips NV (PHG): Posted Q3 EBITDA of €531 million, above estimates, aided by AI tool launches and mitigation of tariff impacts, with 3% sales growth led by North America.
Leidos Holdings Inc. (LDOS): Raised its full-year profit guidance to $11.45–$11.75 per share amid sustained defense demand and munitions sales, while maintaining revenue forecast.
Lockheed Martin Corp. (LMT): Working to expedite F-16V deliveries to Taiwan after supply chain delays pushed back the program timeline beyond 2026.
Microsoft Corp. (MSFT): Plans to invest $15 billion in the UAE by 2029 and received approval to export Nvidia AI chips for local data center expansion.
Novo Nordisk A/S (NVO) & Pfizer Inc. (PFE): Pfizer filed a second lawsuit against Novo Nordisk, alleging its $9 billion bid for Metsera was an anti-competitive move to stall obesity drug competition.
Oshkosh Corp. (OSK): Facing multiple U.S. lawsuits alleging fire truck price-fixing; the company denied wrongdoing while continuing to invest in production capacity.
Palantir Technologies Inc. (PLTR): Forecast Q4 revenue above estimates after a strong Q3, with $1.18 billion in revenue and EPS of $0.21, reflecting growing AI adoption across clients.
Procter & Gamble Co. (PG): Faces a lawsuit alleging misleading toothpaste packaging for children, suggesting excessive use contrary to safety guidelines.
Qualcomm Inc. (QCOM): JPMorgan raised its target to $210 from $200, citing strong smartphone chip demand, AI data center expansion, and greater Apple chip exposure.
Realty Income Corp. (O): Narrowed 2025 FFO forecast to $4.25–$4.27 per share amid a soft macro backdrop, though Q3 revenue of $1.47 billion topped expectations.
SBA Communications Corp. (SBAC): Jefferies cut its target to $192 from $198 on slightly weaker long-term growth outlook, despite a strong Verizon lease agreement and solid results.
Sarepta Therapeutics Inc. (SRPT): Shares plunged after its late-stage Duchenne muscular dystrophy trial failed to meet the main goal, ending a nine-year study.
Sherwin-Williams Co. (SHW): Promoted longtime executive Benjamin Meisenzahl to CFO effective January 2026, succeeding Allen Mistysyn, who will retire after 35 years.
Simon Property Group Inc. (SPG): Raised full-year FFO forecast after Q3 beat with $3.22 per share, supported by resilient leasing and retail traffic.
Sprott Inc. (SII:CA): TD Cowen lifted its target to C$125 from C$100, citing robust commodity market performance and rising assets under management fueling earnings momentum.
Starbucks Corp. (SBUX): Will sell majority control of its China operations to Boyu Capital in a $4 billion deal to rejuvenate local growth amid stiff competition from cheaper rivals.
Stellantis NV (STLA): Recalling over 320,000 Jeep and Grand Cherokee EVs in the U.S. due to potential battery fire risks; advised owners to park outdoors.
Tesla Inc. (TSLA): October China-made EV sales fell 9.9% year-over-year to 61,497 units, with exports down sharply; Norway’s wealth fund plans to vote against Elon Musk’s $1T pay package.
Thomson Reuters Corp. (TRI:CA): Reported Q3 EPS of $0.85 on revenue of $1.78 billion, topping estimates; reaffirmed full-year 7–7.5% organic revenue growth, citing strong AI-driven momentum in its legal and tax software units.
Vertex Pharmaceuticals Inc. (VRTX): Beat quarterly expectations and raised its 2025 revenue guidance to $11.9–$12 billion on continued strength in cystic fibrosis treatments.
Williams Companies Inc. (WMB): Missed Q3 profit expectations due to higher interest and maintenance costs; raised 2025 capital expenditure to $3.95–$4.25 billion following its LNG investment.
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