Global Markets
The global financial markets experienced a mixed performance as various factors influenced investor sentiment across different regions. In the United States, the S&P 500 and Nasdaq indices faced declines following previous gains, driven by a surge in growth stocks. Investors reacted positively to the impressive earnings report from megacap Tesla, which injected optimism into the market. However, the overall sentiment was tempered by concerns about inflation and rising interest rates, leading to a pullback in stock prices.
On the other side of the Atlantic, European shares saw a rise, buoyed by the technology sub-index’s strong performance. ASM International’s robust forecast provided a boost to the tech sector, driving investor confidence higher. This positive momentum helped counterbalance any lingering concerns about geopolitical tensions and economic uncertainties in the region.
In Asian markets, China stocks and Japan’s Nikkei followed the upward trend set by Wall Street. Investors remained optimistic about the global economic recovery, spurred by strong corporate earnings and fiscal stimulus measures. The positive performance of Asian markets reflected a broader sense of confidence among investors in the region.
In Canada, the main stock index experienced a slight decline as gold and oil prices retreated. Despite the commodity price pressures, optimistic investor sentiment in the United States helped cushion the impact on Canadian stocks. The overall outlook remained positive, supported by expectations of continued economic growth and corporate profitability.
In the currency markets, the U.S. dollar staged a recovery, reversing some of its earlier losses. Meanwhile, the Japanese yen remained near 34-year lows, reflecting persistent weakness in the currency. These currency dynamics played a role in shaping global trade flows and investor strategies, influencing asset allocation decisions across different markets.
Corporate News
- French luxury group Kering:
- Expects a 40% to 45% plunge in first-half operating profit.
- Sales declined in the first quarter, especially from its star label Gucci, as wealthy shoppers restrained spending.
- European Union antitrust regulators:
- Questioning rivals and customers about the proposed acquisition of Telecom Italia’s fixed-line access network by U.S. investment firm KKR.
- Concerned about potential impacts on Italy’s wholesale market.
- Swedish bank Handelsbanken:
- Reported first-quarter net profit below market expectations.
- Announced a strategic refocus of its Norwegian operations.
- Canada’s Rogers Communications:
- Topped Wall Street estimates for first-quarter wireless subscriber additions.
- Benefited from rapid growth in the country’s immigrant population, boosting demand for its services.
- AT&T:
- Surpassed Wall Street expectations for first-quarter wireless subscriber additions and free cash flow.
- Saw increased purchases of its higher-tier unlimited plans.
- Humana:
- Beat first-quarter profit expectations, driven by strength in its government-backed insurance business for older adults.
- Recorded a boost from certain valuation adjustments in strategic partnerships.
- Biogen:
- Beat Wall Street estimates for first-quarter profit.
- Recorded a significant jump in Alzheimer’s drug sales and implemented cost-cutting measures.
- Boston Scientific Corp:
- Raised its annual profit forecast, anticipating resilient demand for its heart devices.
- Reported first-quarter revenue exceeding estimates.
- Bunge Global SA:
- Beat Wall Street expectations for first-quarter profit.
- Benefited from a recovery in processing margins and strong export volumes.
- Chubb Ltd:
- Posted a rise in first-quarter profit, driven by higher returns from investments and stronger underwriting.
- Reported growth in net written premiums and pre-tax net investment income.
- CoStar Group Inc:
- Beat Wall Street estimates for first-quarter revenue, supported by strong sales and consumer traffic on its homes.com website.
- Raised the lower end of its full-year 2024 revenue forecast.
- Enphase Energy Inc:
- Projected second-quarter revenue below analysts’ estimates due to sluggish demand across its markets.
- Experienced a significant decline in microinverter shipments.
- EQT Corp:
- Cut its forecast for full-year sales volume due to persistently low natural gas prices.
- Reported a slump in net income and quarterly operating revenue.
- Hasbro Inc:
- Reported a smaller-than-expected drop in first-quarter sales and beat profit estimates.
- Experienced growth in revenue from digital gaming segments.
- Hilton Worldwide Holdings Inc:
- Raised its annual adjusted profit forecast, relying on international travel demand to offset domestic trends.
- Reported growth in revenue per available room (RevPAR) and beat analysts’ profit estimates.
- IDEX Corp:
- Missed Wall Street estimates for first-quarter profit and revenue.
- Experienced lower demand in units making metering and health & science technologies.
- Lloyds Banking Group Plc:
- Saw pretax profit slide in the first quarter due to rising costs and intensifying competition in the mortgage market.
- Reported a decline in net interest margin and reiterated guidance for 2024.
- Mattel Inc:
- Posted a smaller-than-expected loss for the first quarter, helped by cost efficiencies and steady digital gaming revenue.
- Reported growth in gross margin and earnings per share.
- Otis Worldwide Corp:
- Beat quarterly profit estimates on higher demand for maintenance and repair services on its elevators.
- Reported an increase in net sales and raised the lower end of its adjusted earnings forecast.
- Seagate Technology Holdings Plc:
- Forecast fourth-quarter profit above Wall Street estimates.
- Reported higher demand for its memory chips from cloud customers.
- Steel Dynamics Inc:
- Beat Wall Street estimates for first-quarter profit, supported by resilient demand and higher prices for flat-rolled steel.
- Experienced a decline in total net sales but reported growth in adjusted profit per share.
- Synchrony Financial:
- First-quarter profit missed expectations due to higher provisions tied to its acquisition of Ally Financial’s point-of-sale financing unit.
- Reported growth in net interest income but higher-than-predicted provisions for credit losses.
- Tesla Inc:
- Will introduce “new models” by early 2025 using current platforms and production lines.
- Reported lower revenue and net profit in the first quarter and expects to incur costs for mass layoffs.
- Texas Instruments Inc:
- Forecast second-quarter revenue above analysts’ estimates, signaling an uptick in demand for analog semiconductors.
- Reported gross profit for the first quarter that exceeded estimates but fell from the year earlier.
- Veralto Corp:
- Beat Wall Street estimates for quarterly results, driven by strong demand for its chemical treatment services and UV filtration systems.
- Raised its forecast for full-year adjusted profit.
- Visa Inc:
- Second-quarter results surpassed Wall Street estimates, supported by strong e-commerce trends.
- Reported growth in payment volume and processed transactions.
- Amazon.com Inc:
- Fined by Italy’s antitrust authority for alleged unfair commercial practices related to automatic pre-setting of a ‘Subscribe and Save’ option.
- Boeing Co:
- Under investigation by the FAA regarding alleged retaliation against employees who insisted on re-evaluating prior engineering work.
- Uber Technologies Inc:
- Defending a ballot initiative to cap contingency fees in civil litigation in Nevada, arguing it meets statutory requirements.
- UBS Group AG:
- Expressing major concerns about Switzerland’s plan to impose tougher capital requirements, potentially requiring additional capital of $15 billion to $25 billion.
