Global Markets
U.S. Markets: U.S. stock indexes were mixed, coming off being buoyed by the Federal Reserve’s commitment to maintaining its accommodative monetary policy stance. The anticipation of forthcoming remarks from Federal Reserve Chair Powell further fueled investor optimism.
Canadian Stock Index Decline: Canada’s primary stock index experienced a decline, reflecting potential concerns or adjustments within the Canadian economy or specific industries.
European Shares Retreat: European were mixed, with shares pulling back from record highs, with declines particularly notable in the technology and luxury sectors.
Asian Equity Markets: In Asian equity markets, Japan’s Nikkei index closed higher, driven by strength in automaker stocks. This performance suggests confidence in Japan’s export-driven economy and optimism about the prospects for the automotive sector. Chinese stocks closed lower 1 percent on poor earnings.
Currency and Commodity Markets: The U.S. dollar strengthened, likely influenced by expectations of tighter monetary policy compared to other major currencies. Gold prices declined, as the strengthening dollar and positive market sentiment reduced the appeal of the precious metal as a safe-haven asset. Meanwhile, oil prices edged up, with the global benchmark Brent crude hovering above $85 per barrel. This uptick may be attributed to various factors such as supply concerns, geopolitical tensions, or expectations of increased demand as economies recover from the pandemic.
Stock News
- FedEx Corp: Adjusted its fiscal 2024 profit forecast, narrowing it to $17.25 to $18.25 per share due to cost cuts and share buybacks offsetting reduced business from its largest customer, the U.S. Postal Service. Quarterly revenue dropped to $21.7 billion from $22.2 billion.
- Lululemon Athletica Inc: Forecasted annual revenue and profit below expectations, citing declining demand for its premium athleisure in North America. Predicted fiscal 2024 revenue of $10.70 billion to $10.80 billion and profit between $14 and $14.20 per share, with fourth-quarter revenue reaching $3.21 billion.
- Nike Inc: Warned of a low single-digit percentage revenue shrinkage in the first half of fiscal 2025 due to cost-saving measures, including reducing orders of certain shoe models. Quarterly profit exceeded estimates at 77 cents per share, with revenue rising to $12.43 billion.
- Archer-Daniels-Midland Co: Received a negative outlook from S&P Global Ratings due to an ongoing investigation into its accounting practices. ADM’s CFO was placed on administrative leave in January amid the probe, with the ratings agency affirming its ‘A’ issuer credit rating.
- Booking Holdings Inc: Faces an antitrust probe in Italy over potential abuse of dominance regarding its handling of hotels in its Preferred Partner Programme.
- Chevron Corp & Hess Corp: Chinese offshore oil and gas major CNOOC filed an arbitration claim to assert a right over Hess’ stake in the Guyana oilfield Stabroek in the event of a sale to Chevron.
- DraftKings Inc: Sports-betting executive Michael Hermalyn refuted claims of stealing trade secrets from DraftKings for his new position at Fanatics, labeling the lawsuit as “character assassination.”
- Exxon Mobil Corp: Is ahead of schedule with its plan to double its liquefied natural gas (LNG) portfolio by 2030, focusing on selling its own gas rather than trading third-party gas.
- Meta Platforms Inc (Instagram): Experienced an outage for more than three hours, affecting services for the photo-sharing platform, but services were restored for most users.
- PepsiCo Inc: Committed to investing an additional $400 million in Vietnam to build two new plants powered by renewable energy.
- Reddit Inc: Shares dipped following its strong debut on the New York Stock Exchange, achieving a valuation of $9.52 billion despite not yet posting an annual profit.
- Tesla Inc: Reduced car production at its China plant due to slow demand and competition, with employees instructed to work five days a week instead of 6-1/2 days.
Top Analyst Ratings
- Alimentation Couche-Tard: National Bank of Canada decreased its target price to C$83 from C$89 after the company’s third-quarter results fell short of expectations.
- Pro Real Estate Investment Trust: TD Securities increased its target price to C$5.5 from C$4.75, reflecting the company’s strong performance in the fourth quarter and growth prospects.
- Darden Restaurants Inc: JPMorgan reduced its target price to $176 from $180 due to a decline in lower-income consumers and higher grocery prices impacting the company.
- FedEx Corp: Baird raised its target price to $325 from $315, citing the company’s better-than-expected third-quarter results and strong margin growth despite challenging conditions.
- Nike Inc: Jefferies lowered its target price to $100 from $110, considering the pressure from a slowdown in consumer spending and recent leadership changes within the company.
- Roper Technologies Inc: Oppenheimer increased its target price to $650 from $580, highlighting the company’s commitment to driving organic growth, M&A productivity, and advancements in GenAI technology.
