Global Market News
The financial markets experienced a mix of movements across different regions and sectors. Canada’s main stock index saw an uptick, following the trend of Wall Street going positive, after a notable downturn in the previous session. This was prompted by U.S. inflation data, which revealed that inflation did not decrease as anticipated, raising uncertainty about the timing of the Federal Reserve’s potential interest rate adjustments in 2024. In Europe, shares slightly edged higher, influenced by softer-than-expected UK inflation figures. Conversely, Japan’s Nikkei retreated from a 34-year high.
In the currency markets, the U.S. dollar weakened against the yen after Japanese currency officials cautioned against rapid and speculative movements in the yen. Meanwhile, sterling also saw a decline. Both oil and gold prices remained relatively stable amidst these fluctuations.
British financial services minister highlighted that shares of British banks are undervalued, partly due to lingering perceptions of Brexit-related challenges and negative sentiment towards financial institutions.
TUI, Europe’s largest travel agent, decided to delist from the London stock market, opting for a move to Frankfurt, reflecting challenges faced by the London market in retaining large companies and attracting new listings.
A Barclays vice president filed a lawsuit against the bank, alleging discrimination based on racial, religious, and gender biases.
Earnings
Barrick Gold surpassed quarterly profit expectations and announced a $1 billion share buyback.
Uber Technologies unveiled a $7 billion share buyback plan following a successful year marked by profitability.
Biogen disclosed a DOJ subpoena related to its business operations in foreign countries.
Chocolate makers Hershey and Cadbury hinted at price hikes to offset surging cocoa prices.
Lyft projected positive free cash flow in 2024 due to cost-cutting measures.
Robinhood reported a surprise profit in Q4 and anticipated strong revenue growth in 2024.
Airbnb forecasted first-quarter revenue above Wall Street estimates, driven by cross-border travel and longer-duration bookings, despite posting a quarterly net loss.
Akamai Technologies missed revenue estimates for the quarter and issued a downbeat outlook for the first quarter.
American International Group beat fourth-quarter profit expectations, driven by higher investment returns in its general insurance arm.
America Movil reported better-than-expected fourth-quarter net profit despite a stronger peso, with growth driven by mobile subscriber additions in Brazil.
DaVita forecasted 2024 profit above estimates on strong demand for kidney dialysis services. Eversource Energy reported a loss due to impairment charges related to offshore wind projects.
IAC reported doubled key profit metrics in Q4 amid increased online traffic and advertising revenue.
Instacart forecasted first-quarter GTV and core profit above estimates but announced job cuts due to slowing advertisement business.
Invitation Homes missed Wall Street estimates for fourth-quarter AFFO per share, partly due to rising fixed expenses.
MGM Resorts beat market expectations for Q4, aided by improved performance in its China business.
Sony lowered its full-year sales forecast for PlayStation 5 consoles and announced plans to list its financial business next year. Sony Group also revealed intentions to list its financial business next year and announced a joint venture with Honda Motor to introduce three electric vehicle models by the second half of the decade.
Top Analyst Ratings
Here are the summarized Top Stock Ratings for today:
- American International Group Inc (AIG): Morgan Stanley raised the target price to $72 from $71. This adjustment followed better-than-expected profit in the fourth quarter, supported by positive rate changes, higher renewal retentions, and strong new business growth.
- Biogen Inc (BIIB): Piper Sandler lowered the target price to $325 from $350. This change came after the company reported lower-than-expected fourth-quarter revenue, with major product lines underperforming.
- Coca-Cola Co (KO): JPMorgan increased the target price to $66 from $64. This adjustment was made after the company’s strong fourth-quarter earnings. Analysts believe Coca-Cola is well-positioned to reaccelerate organic growth toward the top end of its long-term 4-6% range.
- Lyft Inc (LYFT): Canaccord Genuity raised the target price to $20 from $18. This change followed Lyft’s beat of fourth-quarter profit estimates, driven by stronger rideshare engagement and growth in new products.
- Marriott International Inc (MAR): Truist Securities raised the target price to $263 from $233. Despite mixed 2024 guidance, analysts believe that the compounding aspect of the company’s business model remains unchanged.
- Neighbourly Pharmacy Inc: RBC lowered the target price to C$18.50 from C$28. This adjustment reflects the belief that ongoing elevated operating costs and the interest rate environment have sharply moderated the pace of M&A and flattened the company’s underlying earnings growth.
- Parex Resources Inc: Scotiabank lowered the target price to C$28 from C$31. This change came after the company’s operations were shut down in Northern Llanos due to ongoing protests, reflecting increased risks and costs faced by the company.
- Shopify Inc: ATB Capital Markets increased the target price to C$110 from C$105. This adjustment was based on the company’s higher gross profit for the fourth quarter, driven by higher subscription revenue growth.
