Global Markets
Canadian Markets
On Thursday, Canada’s TSX (Toronto Stock Exchange) experienced a significant decline, as commodity prices, particularly gold and oil, dropped due to profit-booking activities. Gold, which had been performing well in recent weeks due to global economic uncertainty, faced a pullback as investors sought to lock in profits. Similarly, oil prices also experienced a decline, largely driven by concerns over supply and demand imbalances.
American Markets
American stock markets were also in the red across the board on Thursday, as investors engaged in profit-taking, reacting to economic data that surpassed expectations. The U.S. Bureau of Labor Statistics released its Producer Price Index (PPI) report, showing a 3% increase in November compared to the previous year. This marked a rise from October’s 2.4% increase and exceeded economists’ expectations, which had anticipated a 2.6% rise. The PPI measures price changes at the wholesale level, or the prices companies face for their goods and services. The higher-than-expected PPI raised concerns that inflation pressures might persist longer than anticipated, which could affect corporate margins and the broader economy. The PPI’s increase to 3% from the prior year represented the largest year-over-year jump since February 2023. On a monthly basis, the PPI increased 0.4%, above October’s 0.2% rise, adding to fears that inflationary pressures might not ease as quickly as hoped.
European Markets
European stock markets traded mixed as the European Central Bank (ECB) cut interest rates a quarter of a percent, mainly in response to a possible trade war next year with Trump, and also weakening economic conditions and inflation nearing its target range in the Eurozone. The region’s economic outlook remains uncertain, with several countries grappling with slow growth and rising concerns over recessionary pressures. A rate cut, which reduces borrowing costs, is a tool the ECB may use to stimulate the economy, but it also suggests that the central bank is worried about economic slowdown, which added to investor caution in European markets.
UK markets rose, even though economists believe the planned blanket tariffs on all imports to the US will have a detrimental effect on the UK economy. However, economists believe that the UK will be better off than the EU with the severity of tariff effects.
Japanese Markets
Japanese stocks closed at a two-month high, buoyed by a rally in U.S. stocks overnight. The rally in U.S. markets provided a lift to global equities, including Japan’s benchmark index, which benefited from optimism surrounding potential monetary easing by the U.S. Federal Reserve (Fed). Investors continue to watch the yen, as it has slowly softened a bit allowing equities to rise.
Corporate Stock News
- Adobe Inc: Adobe forecasted fiscal 2025 revenue below Wall Street estimates due to slower-than-expected monetization of AI investments. The company projected $23.30 billion to $23.55 billion in revenue, lower than the $23.78 billion expected. It also expects first-quarter revenue between $5.63 billion and $5.68 billion, below estimates.
- Alphabet Inc & Meta Platforms Corp: Australia is planning new rules to charge tech firms like Google and Facebook’s Meta for news hosted on their platforms, pressuring them to pay Australian publishers or face hefty fines.
- Anaptysbio Inc: Wainwright cut the target price to $19 from $52 after the company’s experimental eczema drug failed its mid-stage trial.
- Baida Inc: China’s Ji Yue Auto, in partnership with Baidu and Geely, is struggling with a price war in the EV market and has announced plans to streamline operations and seek fresh funding.
- Bank of America Corp: RBC raised its target price for Bank of America to $50 from $46, reflecting strong profitability and positive economic outlook.
- Blackstone Inc: Announced the $2.6 billion acquisition of the Tokyo Garden Terrace Kioicho office and hotel complex, the largest real estate investment by a foreign investor in Japan.
- Centene Corp: Forecasted better-than-expected 2025 profits, expecting adjusted profits greater than $7.25 per share, surpassing analyst estimates. However, it anticipates higher medical care costs due to increased demand in government-backed health plans.
- Cenovus Energy Corp: Forecasted higher 2025 production between 805,000 and 845,000 boepd, driven by new projects, with expenses expected to range between C$4.6 billion and C$5 billion.
- Chevron Corp & Exxon Mobil: Both are exploring entering the electricity business, with plans to use natural gas and carbon capture to power AI data centers.
- Coastal Financial Corp: KBW raised its target price to $96 from $92, citing a unique business model and strong earnings potential.
- Corcept Therapeutics: Announced that its experimental drug for ALS failed its mid-stage trial, with patients experiencing more gastrointestinal issues than those on the placebo.
- ExxonMobil Corp: Under scrutiny for its alleged involvement in a hack-and-leak operation targeting environmentalists. Exxon also faces a $14.25 million penalty over air pollution violations at its Baytown refinery.
- Finning International Inc: CIBC raised its target price to C$50 from C$48, citing the company’s significant exposure to copper as a key driver for near-term earnings growth.
- General Motors Co & Microsoft Corp: GM’s exit from the Cruise robotaxi business disappointed analysts, but was seen as a step in the right direction. Microsoft expects to record an $800 million impairment charge due to GM’s decision.
- HSBC Holdings Plc: Partnered with the World Bank’s IFC to provide $1 billion in trade financing for emerging markets.
- Keros Therapeutics Inc: Voluntarily halted the usage of certain doses of its high blood pressure treatment in a mid-stage study due to safety concerns.
- Lazard Inc: CEO Peter Orszag predicted a surge in dealmaking momentum in 2025, fueled by private equity activity.
- Live Nation Entertainment Inc: JPMorgan raised its target price to $150 from $137 after the company’s investor day revealed better-than-expected future performance.
- Meta Platforms Inc & Alphabet Inc: Australia’s government is introducing rules to charge major tech companies for hosting news content on their platforms.
- Nasdaq Inc: A U.S. appeals court ruled against Nasdaq’s diversity rules for listed companies, which would have required them to appoint women and minority directors or explain why not.
- New York Times Co: The NewsGuild reached a tentative agreement with the company for a new three-year contract, following a strike by tech workers demanding better pay and job security.
- Nordson Corp: Forecasted fiscal 2025 revenue below Wall Street estimates due to slow recovery in electronics and agriculture markets, with full-year revenue expected to range from $2.75 billion to $2.87 billion.
- Nvidia Corp: Nvidia expanded its research team in China to focus on autonomous driving technologies amid an ongoing anti-monopoly investigation into the company.
- PACCAR Inc: Issued a recall for 220,972 vehicles in the U.S. due to electronic control unit issues affecting braking and stability systems.
- ServiceTitan Inc: Priced its U.S. IPO at $71 per share, above the expected range, raising $624.8 million and valuing the company at $6.3 billion.
- Toromont Industries Ltd: CIBC raised its target price to C$128 from C$127, citing the company’s strong balance sheet and positive outlook for construction and mining markets in Eastern Canada.
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.
