Global Markets
US equities experienced a slight downturn, reflecting cautious sentiment among investors, who are closely monitoring an impending domestic inflation report slated for later in the week.
European markets, after enjoying substantial recent advances fueled by accommodative stances from major central banks, saw a modest decline as investors adjusted their positions.
Japan’s Nikkei ended the day lower, mirroring the cautious sentiment prevalent in global markets. Stocks in China and Hong Kong also closed in negative territory, primarily driven by weakness observed in the technology and media sectors.
Canada’s primary stock index showing marginal gains, setting a positive tone amid the holiday-shortened period.
Amidst these market movements, the US dollar exhibited strength against other major currencies, underlining its status as a safe-haven asset during times of uncertainty. Concurrently, gold prices saw a slight uptick as investors renewed their bets on an anticipated interest rate cut by the Federal Reserve, with June emerging as a potential timeline.
On the commodities front, oil prices climbed higher, buoyed by concerns surrounding tightening global supply dynamics exacerbated by escalating geopolitical tensions in the Middle East and ongoing conflicts between Russia and Ukraine. Additionally, a decline in the US rig count provided further support to oil prices, reinforcing the bullish sentiment in the energy markets.
Corporate News:
- Novo Nordisk A/S has announced the acquisition of Cardior Pharmaceuticals for up to $1.11 billion, aimed at bolstering its cardiovascular pipeline and expanding its focus beyond diabetes and weight-loss therapies. The deal includes Cardior’s lead compound CDR132L, currently in phase 2 clinical development for heart failure treatment.
- Chemours Co has appointed Denise Dignam as CEO, effective immediately, following her interim role in the position for a month. Dignam, a veteran of the chemical industry with over 35 years of experience, will lead the company while the search for a permanent CFO continues.
- China has introduced guidelines to phase out U.S. microprocessors from Intel and AMD, along with Microsoft’s Windows operating system and foreign-made database software, from government personal computers and servers. The move aims to promote domestic options and ensure “safe and reliable” processors and operating systems in government agencies.
- A coalition of tech companies, including Qualcomm, Google, and Intel, plans to challenge Nvidia’s dominance in AI by targeting the software that binds developers to Nvidia chips. The initiative, starting with Intel’s OneAPI technology, aims to create a suite of software and tools to power various AI accelerator chips, promoting open-source solutions and reducing dependence on Nvidia.
- The European Union has initiated investigations under the Digital Markets Act into tech giants Apple, Alphabet, and Meta Platforms for potential breaches of EU tech rules. The investigations focus on various aspects of the companies’ operations, including self-preferencing and steering practices, signaling increased scrutiny over their market dominance.
- BioNTech SE has been notified by the U.S. National Institutes of Health regarding default in the payment of royalties related to its COVID-19 vaccine developed in partnership with Pfizer. While BioNTech disagrees with the NIH’s positions, it intends to defend against allegations of breach related to royalty payments.
- Boeing’s largest labor union is seeking a board seat at the company, aiming to have a greater voice in decision-making processes. The International Association of Machinists District 751, representing 32,000 workers in Washington state, has initiated contract negotiations with Boeing as part of its efforts to enhance representation.
- Nasdaq has notified B. Riley Financial Inc of non-compliance with listing rules due to a delay in filing its annual report. While the notification has no immediate effect on the company’s listing, B. Riley must submit a plan within 60 days to regain compliance with Nasdaq’s rules.
- Exxon Mobil Corp is restarting a hydrocracker at its Beaumont, Texas refinery after a planned overhaul, while also exploring a low-carbon hydrogen and ammonia production project in the United States in partnership with JERA, Japan’s top power generator.
- Robert Bosch, Lennox International, and Samsung Electronics are among the industrial firms competing to acquire heating and ventilation assets worth over $6 billion from Johnson Controls International. Separately, the FBI has informed passengers of an Alaska Airlines Boeing 737 MAX 9 that they may be victims of a crime related to a mid-air emergency incident.
- Masimo Corp is evaluating a proposed spinoff of its consumer business, while activist investor Politan Capital Management plans a second proxy battle for two more board seats. Politan intends to nominate two director candidates to Masimo’s board, following its previous success in winning two seats.
- McDonald’s Corp has terminated its agreement with its local partner in Sri Lanka, resulting in the closure of all 12 outlets in the country. The decision, attributed to standard issues, may lead to the company returning with a new franchisee in the future.
- The U.S. Federal Aviation Administration is increasing oversight of United Airlines Holdings Inc to ensure compliance with safety regulations following a series of safety incidents. The agency will conduct a formal evaluation to ensure the airline’s adherence to safety standards.
- Boeing Co has sued Virgin Galactic Holdings Inc in U.S. court, accusing the space tourism startup of stealing trade secrets and failing to pay $25 million for work on a new “mothership” designed for space travel. Boeing seeks the destruction of proprietary information allegedly acquired by Virgin Galactic through its collaboration with Boeing subsidiary Aurora Flight Sciences.
- Walt Disney Co has responded to criticism from activist investor Nelson Peltz regarding the company’s film content, particularly its focus on female and Black actors. Disney contends that Peltz’s remarks underscore his unsuitability for the company’s board, emphasizing its commitment to quality storytelling.
Top Stock News:
- BCE Inc: National Bank of Canada reduces its target price for BCE Inc to C$53 from C$55 due to the company’s revenue numbers falling below expectations.
- Firm Capital Mortgage Investment Corp: TD Securities increases its target price for Firm Capital Mortgage Investment Corp to C$13 from C$12, expecting the company’s management to maintain a tighter spread on new mortgages and loans.
- K-Bro Linen Inc: TD Securities raises its target price for K-Bro Linen Inc to C$45 from C$43, citing the company’s strong performance in the fourth quarter.
- Lassonde Industries Inc: National Bank of Canada raises its target price for Lassonde Industries Inc to C$174 from C$173, expressing confidence in the company’s robust fourth-quarter earnings.
- Amedisys Inc: RBC increases its target price for Amedisys Inc to $100 from $97, noting that the company’s agreement with Optum will establish a strong precedent for operating home health assets.
- Atmus Filtration Technologies Inc: JPMorgan raises its target price for Atmus Filtration Technologies Inc to $36 from $27, suggesting that the company is well-positioned to improve its operating margins.
- Boeing Co: JPMorgan lowers its target price for Boeing Co to $230 from $270, citing difficulties in delivering its 737 aircraft.
- Willdan Group Inc: Wedbush raises its target price for Willdan Group Inc to $35 from $30, reflecting the company’s strong visibility in FY2024 and changes in software delivery.
