Stock Market Update for May 29th, 2024

STA Research
May 29th, 2024
Stock Market Update for May 29th, 2024 Volkswagen announced plans to develop low-cost electric vehicles, aiming to better compete with Chinese rivals, following the collapse of talks with Renault for a collaboration on the project. Sabadell's BBVA Takeover: Spain's Sabadell informed retail shareholders that they might not need to decide on BBVA's hostile takeover attempt until 2025, emphasizing Sabadell's strong standalone prospects. Bank of Montreal's Quarterly Performance: Bank of Montreal missed analysts' profit estimates for the quarter, impacted by weaknesses in its U.S. segment and increased provisions for potential loan losses in a high-interest-rate environment. National Bank of Canada's Performance: National Bank of Canada reported increased second-quarter net profit, driven by strong performance in its wealth management and financial markets units. Toronto-Dominion Bank's New Hire: Daniel Kerstein, a former Barclays executive, is joining Toronto-Dominion Bank's M&A team as a managing director, based in New York. Nutrien's Fertilizer Facility Closure: Nutrien announced the indefinite halting of three fertilizer-blending facilities in Brazil as part of a broader reorganization amid tough market conditions. KKR's Acquisition: Private equity firm KKR is acquiring Emera's indirect minority stake in the Labrador Island Link clean energy transmission project for C$1.19 billion. Amazon's FTC Lawsuit: A U.S. judge rejected Amazon's request to dismiss an FTC lawsuit accusing the company of enrolling consumers into its paid Prime service without consent. American Airlines' Profit Forecast Cut: American Airlines lowered its second-quarter profit forecast due to weaker pricing power, and its Chief Commercial Officer Vasu Raja will leave in June. Amgen's Biosimilar Approval: The FDA approved Amgen's Bkemv, the first biosimilar to AstraZeneca's rare blood disorder treatment Soliris. Boeing's Firefighters' Contract Deal: Boeing reached a tentative contract agreement with the union representing its firefighters, potentially ending a lockout that began in early May. Deutsche Bank's Legal Dispute: A Russian court ruled partially in favor of a venture of Gazprom in its 239-million-euro claim against Deutsche Bank. Faraday Future's Production Forecast Withdrawal: Faraday Future withdrew its production forecast for 2024 due to current market conditions and funding levels. Robinhood's Share Buyback Plan: Robinhood announced its first-ever share buyback plan worth $1 billion as it looks to grow beyond its startup phase. Tesla's Shareholder Vote Incentive: Elon Musk offered tours of Tesla's factory to shareholders voting on his $56 billion pay package, aiming to rally votes for the compensation after a court struck it down. Trump Media's Allegation of Market Manipulation: Trump Media requested an investigation into alleged market manipulation of its shares by the Louisiana Office of Financial Institutions. Uber's Initiatives for Paris Olympics: Uber unveiled measures including cruises on the Seine river to meet demand during the upcoming Olympics in Paris. UPS's Plans for RFID Tags in India: UPS is in talks with Indian state governments to produce tracking tags used in packages, aiming to leverage the country's semiconductor investments. VinFast's Delayed Factory Plans:
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Global Markets

  • U.S. stock indexes fell along with European shares due to concerns over rising bond yields, which raised worries of prolonged elevated interest rates.
  • Chinese stocks ended slightly higher following the IMF’s raised economic growth outlook.
  • The Japanese yen weakened to its lowest level in four weeks against the US dollar, prompting investors to resume carry trades.
  • Canada’s main stock index declined, reflecting losses in the US market.
  • Oil prices neared a four-week peak on expectations of output cuts by major producers amid peak summer demand.
  • Gold prices experienced a slip.

Corporate Stock News

  • BHP Takeover Talks:
    • BHP, the world’s largest miner, struggled to reach an agreement with Anglo American regarding its takeover bid as a deadline approached, with no new concessions made.
  • Volkswagen’s Electric Vehicle Plans:
    • Volkswagen announced plans to develop low-cost electric vehicles, aiming to better compete with Chinese rivals, following the collapse of talks with Renault for a collaboration on the project.
  • Sabadell’s BBVA Takeover:
    • Spain’s Sabadell informed retail shareholders that they might not need to decide on BBVA’s hostile takeover attempt until 2025, emphasizing Sabadell’s strong standalone prospects.
  • Bank of Montreal’s Quarterly Performance:
    • Bank of Montreal missed analysts’ profit estimates for the quarter, impacted by weaknesses in its U.S. segment and increased provisions for potential loan losses in a high-interest-rate environment.
  • National Bank of Canada’s Performance:
    • National Bank of Canada reported increased second-quarter net profit, driven by strong performance in its wealth management and financial markets units.
  • Toronto-Dominion Bank’s New Hire:
    • Daniel Kerstein, a former Barclays executive, is joining Toronto-Dominion Bank’s M&A team as a managing director, based in New York.
  • Nutrien’s Fertilizer Facility Closure:
    • Nutrien announced the indefinite halting of three fertilizer-blending facilities in Brazil as part of a broader reorganization amid tough market conditions.
  • KKR’s Acquisition:
    • Private equity firm KKR is acquiring Emera’s indirect minority stake in the Labrador Island Link clean energy transmission project for C$1.19 billion.
  • Amazon’s FTC Lawsuit:
    • A U.S. judge rejected Amazon’s request to dismiss an FTC lawsuit accusing the company of enrolling consumers into its paid Prime service without consent.
  • American Airlines’ Profit Forecast Cut:
    • American Airlines lowered its second-quarter profit forecast due to weaker pricing power, and its Chief Commercial Officer Vasu Raja will leave in June.
  • Amgen’s Biosimilar Approval:
    • The FDA approved Amgen’s Bkemv, the first biosimilar to AstraZeneca’s rare blood disorder treatment Soliris.
  • Boeing’s Firefighters’ Contract Deal:
    • Boeing reached a tentative contract agreement with the union representing its firefighters, potentially ending a lockout that began in early May.
  • Deutsche Bank’s Legal Dispute:
    • A Russian court ruled partially in favor of a venture of Gazprom in its 239-million-euro claim against Deutsche Bank.
  • Faraday Future’s Production Forecast Withdrawal:
    • Faraday Future withdrew its production forecast for 2024 due to current market conditions and funding levels.
  • Robinhood’s Share Buyback Plan:
    • Robinhood announced its first-ever share buyback plan worth $1 billion as it looks to grow beyond its startup phase.
  • Tesla’s Shareholder Vote Incentive:
    • Elon Musk offered tours of Tesla’s factory to shareholders voting on his $56 billion pay package, aiming to rally votes for the compensation after a court struck it down.
  • Trump Media’s Allegation of Market Manipulation:
    • Trump Media requested an investigation into alleged market manipulation of its shares by the Louisiana Office of Financial Institutions.
  • Uber’s Initiatives for Paris Olympics:
    • Uber unveiled measures including cruises on the Seine river to meet demand during the upcoming Olympics in Paris.
  • UPS’s Plans for RFID Tags in India:
    • UPS is in talks with Indian state governments to produce tracking tags used in packages, aiming to leverage the country’s semiconductor investments.
  • VinFast’s Delayed Factory Plans:
    • VinFast, the Vietnamese electric car maker, is considering further delaying its planned $4 billion factory in North Carolina due to challenges in gaining favor with U.S. consumers.
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