Stock Market Update for Wed Feb 7th 2024

Stock Market Update for Wed Feb 7th 2024

The Global Markets

  1. North America:
    • Canada: The main stock index remained flat, influenced by lower gold prices and cautiousness ahead of the Bank of Canada’s policy meeting minutes.
    • United States: Markets saw an uptrend, with significant movements in shares of Ford and Snap following their quarterly results. Investors awaited remarks from policymakers regarding interest-rate cuts.
  2. Europe:
    • European shares showed a flat trend. Easing government bond yields and positive earnings reports from certain companies were countered by declines in healthcare and energy stocks.
  3. United Kingdom:
    • UK markets closed in the red amid concerns over inflation, particularly driven by rising home prices.
  4. Asia:
    • Japan: The Nikkei ended lower, impacted by declines in heavyweight technology stocks.
    • China: Chinese shares closed higher as investors anticipated more substantial market rescue measures following signals from Beijing indicating increased efforts to support the struggling markets.

Stock News

  • Canada: The Canadian government expressed its commitment to support First Quantum Minerals after the closure of its flagship copper mine in Panama. Trade Minister Mary Ng emphasized the importance of the company to Canada and hinted at potential support measures.
  • Alibaba: The e-commerce giant missed revenue estimates for the third quarter due to softness in the retail market and economic challenges in China. However, it announced a significant increase in its buyback program by $25 billion.
  • Uber: Uber Technologies forecasted strong quarterly core profit and gross bookings above estimates, driven by increased demand in its ride-sharing and food delivery segments.
  • Microsoft: The tech giant engaged in talks with CISPE to resolve an EU antitrust complaint related to its cloud computing licensing practices.
  • Brazil: Brazilian federal prosecutors sought to annul a contract between Belo Sun Mining Corp and Brazil’s land rights agency for the construction of a controversial gold mine in the Amazon rainforest. The project has faced opposition due to potential environmental impacts, and prosecutors advocated for consultation with local communities before proceeding.
  • First Quantum Minerals Ltd: First Quantum Minerals faced challenges following the closure of its Panama copper mine, leading to a significant drop in its market value. The Canadian government expressed willingness to support the company, which is exploring various options to manage its balance sheet, including selling smaller mines and seeking strategic investors. It has also initiated international arbitration over the contested Cobre Panama contract.

US Stocks

Alphabet Inc: A Waymo driverless car incident raises concerns about safety in autonomous vehicle technology.

Apple Inc: Apple successfully defends against a lawsuit alleging monopolistic practices in heart rate monitoring apps, reaffirming its commitment to innovation and consumer choice.

BlackRock Inc: CEO Larry Fink aims to rebuild relationships after Texas blacklist, highlighting BlackRock’s dedication to sustainable investing amid political scrutiny.

Boeing Co: Boeing evaluates NTSB investigation findings on 737 MAX 9 blowout, emphasizing proactive measures to enhance aircraft safety.

Catalent Inc: Regulatory scrutiny prompts Catalent to address deficiencies in pharmaceutical manufacturing processes.

Colgate-Palmolive Co: Legal challenges over recyclability claims highlight the importance of transparent labeling and environmental responsibility.

Colgate-Palmolive Co & Kellanova: Allegations of environmental misconduct urge companies to investigate and address sustainability concerns.

Exxon Mobil Corp: Exxon’s expansion in Guyana raises environmental sustainability concerns despite driving growth in oil production.

Fox Corp, Walt Disney Co & Warner Bros Discovery Inc: Media giants collaborate on a sports streaming service, adapting to changing consumer preferences in digital entertainment.

General Motors Co: GM secures a battery supply agreement to accelerate electric vehicle production, highlighting its commitment to sustainable mobility.

I-Mab: Biotech firm divests Chinese operations to focus on the U.S. market, aiming to streamline operations and enhance shareholder value.

Microsoft Corp: Microsoft engages in talks to resolve its EU antitrust complaint while announcing plans to provide AI skilling opportunities in India, stressing international cooperation on AI norms.

New York Community Bancorp Inc: NYCB faces challenges following a surprise quarterly loss and provisions for bad loans, prompting Moody’s downgrade, as the bank seeks to fill key executive positions amid departures.

Petroleo Brasileiro SA Petrobras: Petrobras explores collaborations with national oil companies and neighboring Venezuela, aiming to strengthen global partnerships.

Ryanair Holdings PLC: Ryanair wins challenge against a Dutch bailout, urging EU regulators to re-examine state subsidies while facing operational challenges.

Target Corp: Target considers a paid membership program to drive revenue growth, potentially incorporating its grocery-delivery business, Shipt.

Tellurian Inc: Tellurian’s proposed sale of assets reflects efforts to sustain operations amid financial challenges, focusing on Driftwood project in Louisiana.

Tesla Inc: Tesla’s German plant achieves production milestone before halting due to component shortages, awaiting expansion approval amid environmental concerns.

Walt Disney Co: Disney faces operational challenges in Hong Kong Disneyland and a lawsuit from Gina Carano against wrongful termination.

Woodside Energy Group Ltd: Talks to create a global oil and gas giant end without agreement, prompting exploration of other opportunities in the LNG sector.

YPF SA: YPF aims to quadruple market value by boosting production from Vaca Muerta shale formation and potentially expanding into exports.

Top Analyst Ratings

  • Check Point Software Technologies Ltd: JPMorgan raises the target price to $167 from $160 due to CEO Gil Shwed’s transition announcement to Executive Chairman role.
  • Chipotle Mexican Grill Inc: Piper Sandler raises target price to $2442 from $2226 following strong fourth-quarter earnings and increased transaction counts.
  • Edwards Lifesciences Corp: Canaccord Genuity raises target price to $86 from $81 after the company surpassed revenue expectations and reiterated FY24 guidance.
  • Eli Lilly and Co: Truist Securities raises target price to $850 from $650 based on growth expectations from expanded access to key drugs Zepbound and Mounjaro.
  • Snap Inc: Jefferies cuts target price to $17 from $22 post fourth-quarter results, citing lower-than-expected revenue growth.
  • Parkland Corp: TD Securities raises target price to C$53 from C$52, anticipating long-term EBITDA growth driven by organic growth, synergy capture, and cost efficiency.
  • Sleep Country Canada Holdings: National Bank of Canada increases target price to C$28 from C$27 in anticipation of the company’s fourth-quarter earnings and expects a recovery in consumer confidence.

 

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