Stock Market Update & Analysis for July 2nd, 2024

Global Markets

Canadian Markets

Following the Canada Day long weekend, Canadian stocks faced downward pressure as investors returned to the market. The decline was primarily driven by a drop in the prices of gold and silver, which typically weigh heavily on the Canadian equity market due to the significant presence of resource companies.

American Markets

In American markets, major indexes experienced losses as megacap stocks retraced from previous gains in a session marked by cautious sentiment. Investors exhibited prudence ahead of key labor market reports scheduled throughout the week, including the eagerly anticipated JOLTS job openings data set to be released later in the day, and S&P gives the US a debt warning.

European Markets

In Europe, stocks retreated to a two-week low as the initial enthusiasm that followed the first round of French parliamentary elections waned, dampening overall market sentiment. Oil stocks led the way down and S&P gives France a debt warning also. EU inflation in the eurozone fell moderately in May to 2.5% from 2.6%.

UK Markets

UK Markets retreated on upcoming election concerns, as the wealthy ready to flee as new tax laws are expected to come in under a new government.  Sainsbury’s reported their sales growth moderated on inflation easing  and consumers cutting back in spending.

Japanese Markets

Japan’s Nikkei index surged over 1 percent to touch the 40,000 level for the first time in three months, buoyed by renewed investor confidence and robust market activity. Concurrently, the U.S. dollar strengthened significantly against the yen, reaching its highest level in nearly 38 years.

Chinese Markets

Chinese markets traded flat on Tuesday, with chip stocks beign the area of weakness. Invesco China released a positive outlook on Chinese stocks, and touted their attractive valuation.  Outlook for the Chinese economy is a recovery in the second quarter, with domestic and foreign demand to increase exports, as manufacturing exports grew in the first quarter.

Oil Markets

Oil prices saw an increase driven by optimism surrounding heightened summer demand expectations. This rise in oil prices was underpinned by market optimism that economic reopening efforts and seasonal travel would boost consumption, thereby supporting commodity prices.

Corporate Stock News

  • Renault’s Ampere: Plans to use LFP technology in EV production with LG Energy Solution and CATL, focusing on building a European supply chain.
  • Rio Tinto (RIO): Negotiating with workers in Mongolia to avoid further strikes over wage cuts at its Oyu Tolgoi copper operations.
  • Restaurant Brands International (QSR:CA,QSR): Acquiring the China franchise of Popeyes and investing in Tims China with Cartesian Capital, injecting up to $50 million.
  • Affirm Holdings (AFRM): Affected by a cybersecurity incident at Evolve Bank, compromising personal data of Affirm card users.
  • Amazon (AMZN): Partnering with Nexi to allow Italian clients to shop on Amazon.it using local debit card service BANCOMAT Pay.
  • Blackstone (BX): Near a $2.17 billion deal to sell Japanese supplement maker Alinamin Pharmaceutical to MBK Partners.
  • Boeing & Spirit AeroSystems (BA): Boeing plans to buy Spirit AeroSystems, shifting focus to finding a new CEO amid management changes. Morningstar maintained the “Buy” rating and $221 target on the stock.
  • Bombardier (BBD-B:CA): CIBC maintains the “Outperform” rating, and $102 target price on the stock for a 12 month period.
  • Chewy Inc (CHWY): “Roaring Kitty” disclosed a 6.6% stake in Chewy, raising concerns among executives about stock volatility.
  • Chicken Soup for the Soul Entertainment (CSSEP): Entered bankruptcy, facing leadership challenges amid restructuring efforts.
  • GameStop (GME): Lawsuit against “Roaring Kitty” for securities fraud withdrawn temporarily; no explanation given.
  • General Electric (GE): Extended CEO Larry Culp’s tenure till end of 2027 amid leadership stability.
  • IAC & Paramount Global (IAC): IAC exploring a bid for Paramount Global, potentially merging Paramount+ with another streaming platform.
  • McDonald’s (MCD): Adjusted breakfast service timings due to egg shortage caused by bird flu outbreaks. Guggenheim Securities maintained the “Buy” rating on the stock and cut the 12 month target to $280 from $315.
  • Microsoft (MSFT): Consolidating retail channels in mainland China without confirming closures of physical stores.
  • Netflix (NFLX): Argus Research maintained the “Buy” rating on Netflix’s stock, and raised the target to $767 from $660.
  • Salesforce (CRM): Majority of shareholders voted against CEO Marc Benioff’s compensation plan.
  • Shell (SHEL): Paused construction on a biofuel plant in Europe due to weak market conditions, focusing on optimizing project costs.
  • Spirit Airlines (SAVE): Appointed Fred Cromer as new CFO, effective July 8, to support financial leadership.
  • Tesla (TSLA): China-made EV sales in June fell 24.2% year-over-year, reflecting market dynamics.
  • Uber (UBER): Launching “Uber Yacht” service in Ibiza and “limo boat” service in Venice to cater to tourism demand in Europe.

Top Trending Stocks

AVG Analyst Rating STA Analysis
StockTargetAdvisor
Buy
StockTargetAdvisor
Slightly Bullish
StockTargetAdvisor
Strong Buy
StockTargetAdvisor
Slightly Bullish
StockTargetAdvisor
Buy
StockTargetAdvisor
Slightly Bullish
StockTargetAdvisor
Buy
StockTargetAdvisor
Slightly Bullish
StockTargetAdvisor
Strong Buy
StockTargetAdvisor
Bullish
StockTargetAdvisor
Strong Buy
StockTargetAdvisor
Slightly Bullish
StockTargetAdvisor
Strong Buy
StockTargetAdvisor
Slightly Bullish
StockTargetAdvisor
Strong Buy
StockTargetAdvisor
Slightly Bullish
N/A N/A
N/A N/A
Ad
Ad

Leave a Reply

Your email address will not be published. Required fields are marked *