Global Markets
- Canada’s Stock Index: The main stock index in Canada experienced an upward trend, attributed to the rise in gold prices. Investors were also anticipating the release of domestic GDP data later in the week, which could influence market sentiment.
- Wall Street: Major U.S. stock indices showed gains. Investors were eagerly awaiting remarks from Federal Reserve officials to gauge the central bank’s monetary policy stance. This anticipation was particularly heightened as it was a holiday-shortened week, culminating in the release of a key U.S. inflation report.
- European Shares: European stock markets remained relatively flat during this period, suggesting a lack of significant directional movement.
- Chinese Stocks: Chinese equities experienced a notable decline, with the Shanghai benchmark dropping to a one-month low. This downturn was primarily driven by substantial selling pressure from foreign investors, resulting in the index slipping below the critical 3000-point mark.
- Japanese Market: Japan’s Nikkei index ended the session on a positive note, indicating gains in the Japanese stock market.
- Currency Markets: The U.S. dollar maintained stability against a basket of currencies, reflecting a steady state in currency markets. However, the Japanese yen weakened significantly, reaching a 34-year low against the U.S. dollar. This depreciation in the yen could be attributed to various factors such as monetary policy divergence between the U.S. Federal Reserve and the Bank of Japan.
- Oil Prices: Oil prices experienced a decline due to several factors, including a surge in U.S. oil stockpiles and indications suggesting that the OPEC+ producer alliance would likely maintain its current output strategy. The upcoming technical meeting of OPEC+ was closely watched by market participants for any potential shifts in oil production policies, which could influence oil prices in the future.
Corporate News
- HSBC: Set up a $1 billion growth fund called ASEAN Growth Fund to provide lending to companies scaling up via digital platforms in Southeast Asia.
- Stellantis: Reached voluntary deals to cut at least 2,500 jobs in Italy as it adapts to industry changes for clean energy transition.
- Italy: Sold a further 12.5% stake in Monte dei Paschi di Siena, advancing plans to re-privatize the bank.
- GameStop Corp: Reported lower fourth-quarter revenue and cut unspecified jobs amid rising competition and weak consumer spending.
- Amazon.com Inc: Fined $7.8 million in Poland for misleading customers about product availability and delivery dates.
- Blackstone Inc & Moderna Inc: Moderna received $750 million funding from Blackstone for developing mRNA flu vaccines.
- Citigroup Inc: Laid off at least 10 people in its equities research department in Asia Pacific.
- Pharmacy Operators (CVS, Walgreens, Walmart): Urged Ohio’s highest court to dismiss liability claims related to fueling an opioid epidemic.
- Regional U.S. Banks (First Commonwealth Financial, M&T Bank, Synovus Financial, Trustmark, Valley National Bancorp): Downgraded by S&P Global due to commercial real estate exposures.
- Li-Cycle Corp: Plans to lay off 17% of its staff to save cash and focus on building a processing facility in New York.
- Merck & Co Inc: FDA approved its treatment for high blood pressure due to lung artery constriction.
- Nio Inc: Lowered first-quarter delivery forecast due to slowing demand and price war in China.
- Robinhood Markets Inc: Launched a new credit card offering 3% cash back on spends and 5% on bookings via its travel portal.
- Stronghold Digital Mining Inc: Sued by an environmental community group over alleged pollution from its bitcoin mine in Pennsylvania.
- Trump Media & Technology Group Corp: Some investor brokerage balances briefly inflated due to confusion over its new stock symbol.
- VinFast Auto Ltd: Signed partnership agreements with 15 dealers in Thailand to expand its presence in Southeast Asia.
- Walgreens Boots Alliance Inc: Asked a Delaware federal judge to strike down an arbitration award of nearly $1 billion to telemedicine provider PWNHealth in a contract dispute.
Top Analyst Ratings
- Antero Resources Corp
- JPMorgan has increased the target price for Antero Resources Corp from $30 to $32. This adjustment is based on the anticipation that the company stands to benefit from the improving natural gas fundamentals expected in 2025. This suggests that JPMorgan analysts foresee favorable market conditions for natural gas, which could positively impact Antero Resources Corp’s financial performance and stock valuation.
- Bank7 Corp
- Piper Sandler has reduced the target price for Bank7 Corp from $37 to $33. The rationale behind this downward revision lies in the perceived risks associated with credit deterioration and elevated operating expenses. This indicates concerns about the bank’s asset quality and the potential impact of increased expenses on its profitability.
- Transdigm Group Inc
- JPMorgan has raised the target price for Transdigm Group Inc from $1,050 to $1,175. The adjustment is attributed to management’s positive outlook on defense demand, implying that the company’s prospects in the defense sector are considered promising. This suggests confidence in Transdigm Group Inc’s ability to capitalize on opportunities within the defense industry.
- Viking Therapeutics Inc
- Oppenheimer has increased the target price for Viking Therapeutics Inc from $116 to $138. This adjustment follows the company’s positive topline results from a phase one trial of its weight loss pill. The favorable trial outcomes likely indicate potential future revenue streams from this product, prompting analysts to revise their valuation upwards.
- Visa Inc
- Evercore ISI has raised the target price for Visa Inc from $325 to $335. This adjustment comes after Visa’s agreement with Mastercard to reduce credit card interchange rates. Such agreements can have significant implications for Visa’s revenue and profitability, prompting analysts to revise their price target upwards in anticipation of improved financial performance.
- Aimia Inc
- TD Securities has decreased the target price for Aimia Inc from C$5 to C$4. This adjustment follows the company’s underwhelming fourth-quarter earnings report. The disappointing financial performance likely raised concerns among analysts regarding Aimia’s ability to meet its growth targets and maintain profitability, leading to a downward revision in the target price.
- Canadian National Railway Co
- CIBC has raised the target price for Canadian National Railway Co from C$177 to C$183. This adjustment is based on the expectation that the company will surpass current forecasts, indicating confidence in Canadian National Railway Co’s ability to deliver strong financial results. Factors such as increased demand for rail transportation services and efficient operations may contribute to this optimistic outlook.
- Dollarama Inc (Ticker: DOL.TO):
- RBC has increased the target price for Dollarama Inc from C$114 to C$118. This adjustment reflects the continued attractiveness of the company due to its strong growth potential and sustainable growth trajectory. Dollarama’s business model, which focuses on offering affordable consumer goods, coupled with its expansion strategies, likely contributes to analysts’ positive outlook on the company’s future performance.
- TFI International Inc
- National Bank of Canada has raised the target price for TFI International Inc from C$209 to C$222. This adjustment is driven by the anticipation that the company will capitalize on specific earnings growth catalysts. Analysts may have identified factors such as increased demand for transportation and logistics services, strategic acquisitions, or operational efficiencies that could drive TFI International Inc’s earnings growth, leading to a higher target price.
