Stock Market News & Update: August 12th, 2024

Global Markets

Canada

Canada’s main stock index saw  an increase of over half a percent, buoyed by significant gains in the energy and mining sectors. This rise was largely driven by a sharp increase in oil prices, which climbed by more than 3 percent, coupled with a rise in gold prices, which rose by over 1 percent. The strengthening of these commodities provided a boost to the Canadian markets, which are heavily influenced by the performance of the energy and mining industries.

USA

American markets traded with a mixed performance as investors prepared for a busy week of economic data releases. The key focus will be on U.S. inflation data scheduled for Wednesday, which is expected to offer critical insights into the Federal Reserve’s likely course of action regarding interest rates in September.

Europe

European shares experienced a slight decline, reflecting a more subdued trading environment across the continent. UK stocks rose on resource based stocks, as investors look forward to inflation data on Tuesday, and the looming Bank of England meeting, to look at  the possibility of proposed rate cuts.

Asia

In Asia markets, the performance of Chinese stocks remained relatively stable, fluctuating within a narrow range. Japanese markets were closed for a public holiday, contributing to a quieter trading day in the region. The Japanese yen continued its gradual depreciation against the U.S. dollar, a trend that has persisted following a week of volatile trading activity.

Commodities

Oil prices have been bolstered by escalating tensions in the Middle East, which have raised concerns about potential disruptions to supply. This geopolitical uncertainty has contributed to the upward pressure on oil prices. Gold prices also have experienced a rise, likely driven by investor concerns over global economic stability and inflation, which often lead to increased demand for safe-haven assets like gold.

Corporate Stock Market Update

• Bank of Nova Scotia: Canada’s Scotiabank has acquired a minority stake in U.S. regional lender KeyCorp through an all-stock deal valued at $2.8 billion. This investment will occur in two stages, and the deal is expected to close in fiscal 2025.
• Barrick Gold Corp: The company exceeded Wall Street expectations for second-quarter profit due to higher gold prices and strong production. Barrick’s gold output was 948,000 ounces, surpassing estimates, and its average realized gold prices increased significantly.
• Boeing Co: Boeing secured a $2.56 billion contract from the U.S. Air Force for two E-7A AEW&C Wedgetail aircraft, which includes lifecycle development, training, and support. This deal follows previous agreements for similar aircraft.
• Citigroup Inc: Citigroup’s wealth unit is looking to sell its trust administration and fiduciary services business as part of a broader overhaul to enhance performance and reduce costs.
• Dell Technologies Inc, HP Inc & Micron Technology Inc: A U.S. appeals court upheld the U.S. Patent and Trademark Office’s rulings in favor of these companies against patent claims related to data management and memory chips.
• GE Vernova Inc: GE Vernova and Vineyard Wind have outlined recovery plans following a turbine blade failure at the Vineyard Wind offshore project. The plan includes steps for recovering debris and addressing safety concerns.
• Hawaiian Electric Industries Inc: The utility company has raised concerns about its ability to finance a $1.99 billion wildfire settlement. The company is exploring various financing options and has suspended dividend payments to its parent.
• Humacyte Inc: The FDA has extended its review of Humacyte’s blood vessel implant, causing a decline in the company’s share price. The review delay is due to additional information required by the regulator.
• Jefferies Financial Group Inc: Japan’s Sumitomo Mitsui Banking Corp has increased its stake in Jefferies to 10.9%, with plans to raise its ownership to up to 15%. This expansion of their alliance includes a new board appointment.
• JPMorgan Chase & Co: JPMorgan has requested a U.S. judge to dismiss its lawsuit against Russia’s VTB Bank over a frozen $439.5 million account. The bank claims that U.S. sanctions and a Russian court injunction have influenced this decision.
• LL Flooring Holdings Inc: The specialty retailer has filed for Chapter 11 bankruptcy and is seeking a going-concern sale of its business. It has secured $130 million in debtor-in-possession financing and plans to close 94 stores.
• Meta Platforms Inc: Meta won an appeal against the Children’s Health Defense group over vaccine misinformation claims. The court upheld that Meta was not coerced by federal officials to censor anti-vaccine content.
• Pfizer Inc: Pfizer’s RSV vaccine, Abrysvo, showed strong immune responses in a late-stage study across various adult groups. The company plans to submit the data to regulatory agencies for review.
• Shell and PetroChina: The companies are expanding the Surat coal seam gas project in Queensland, Australia, amid increasing calls for investment in local energy supply.
• Starbucks Corp: Activist investor Starboard Value has taken a stake in Starbucks and is reportedly pushing for steps to improve the company’s stock performance. The company is also engaged with another activist investor, Elliott Investment Management.
• Tesla Inc: Tesla has halted orders for the $61,000 version of its Cybertruck, while the more expensive $100,000 model remains available. The company’s website no longer offers the less expensive option, reflecting strong demand for the higher-priced version.
• Thyssenkrupp: The company plans to restructure its steel division to support investment needs with its own earnings, while the parent company has provided financial security for the next two years.
• Walt Disney Co: Disney’s Chairman Josh D’Amaro announced plans for new theme park developments and cruise ships at the D23 fan convention. The company also highlighted upcoming film releases and box office successes.

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