Stock Market Update: May 13th, 2024

Stock Market Update: May 13th, 2024

Global Markets

  • US Markets: US markets saw slight gains as investors prepared for a week of inflation data that could provide insights into the Federal Reserve’s potential timing for interest rate adjustments. The anticipation of these figures influenced market sentiment, with investors closely monitoring the data for indications of the Fed’s stance on monetary policy.
  • European Shares: European shares struggled to find direction after a period of record-breaking performance. Traders awaited a series of economic data releases scheduled for the week, which would likely impact market movements. The uncertainty surrounding the upcoming data contributed to the cautious trading atmosphere in European markets.
  • Asian Markets: Chinese stocks declined due to concerns over planned US tariffs and sluggish credit growth. Similarly, the Nikkei in Japan ended lower as traders exercised caution ahead of corporate earnings announcements. The mixed performance in Asian markets reflected the broader global economic uncertainties and geopolitical tensions.
  • Canada’s Main Stock Index: Canada’s main stock index experienced a slight uptick, supported by higher copper prices and signals of improving demand in China. Additionally, expectations of OPEC+ extending supply cuts provided further support to oil prices, contributing to the positive sentiment in Canadian markets.
  • Currency and Commodity Markets: The US dollar stabilized against other major currencies after recording its first weekly rise in three weeks. Meanwhile, gold prices experienced a slight decline amid the relatively stable dollar. These movements in currency and commodity markets were influenced by various factors, including economic data releases, geopolitical developments, and central bank policies.

Corporate Stock News

  • Akamai Technologies Inc: Forecasted second-quarter revenue and profit below Wall Street estimates due to weak demand for its content delivery services. Expects revenue between $967 million and $986 million, with adjusted earnings per share between $1.51 and $1.56. First-quarter revenue fell short of estimates at $987 million.
  • Credicorp Ltd: Posted a first-quarter net profit of $409.76 million, up 9% from the previous year, driven by increased net interest income and a shift in the loan book towards retail. However, return on equity dipped slightly to 18.2%, with non-performing loans rising to 6.2% of the loan book.
  • Gen Digital Inc: Beat Wall Street’s fourth-quarter revenue estimate with revenue rising 2% to $967 million. President Ondrej Vlcek will be stepping down, and the company’s board approved $3 billion for share repurchases. Projected full-year 2025 revenue in the range of $3.89 billion to $3.93 billion.
  • Honda Motor Co Ltd: Announced plans to increase R&D spending by nearly a quarter to enhance competitiveness in hybrid and electrified vehicles. Forecasted a 2.8% rise in operating profit for 2024/25 and announced a share buyback worth up to 300 billion yen after beating fourth-quarter earnings estimates.
  • Insulet Corp: Reported first-quarter profit below market expectations due to higher marketing expenses. Raised full-year revenue growth outlook and reported total revenue rose more than 23% to $441.7 million for the quarter ended March 31.
  • Mettler-Toledo International Inc: Raised annual profit forecast despite expecting weak demand to continue in the second quarter. Reported flat sales of $926 million for the quarter ended March 31 but surpassed analyst estimates with an adjusted profit of $8.89 per share.
  • Novavax Inc & Sanofi SA: Struck a licensing deal worth up to $1.2 billion with Sanofi for COVID-19 vaccines. Narrowed net loss in the first quarter and expects full-year revenue of $400 million to $600 million.
  • Zeekr Intelligent Technology Holdings Ltd (IPO): Priced its initial public offering at the top end of its range, selling 21 million American depositary shares at $21 each to raise $441 million. The IPO gives Zeekr a fully diluted valuation of $5.5 billion.
  • Shein London Listing: Fast-fashion giant Shein is preparing for a London listing following regulatory obstacles and opposition from U.S. lawmakers to its attempted New York listing.
  • Boeing Aircraft Delivery Delays: Lufthansa CEO expressed frustration over aircraft delivery delays from Boeing, citing significant financial impacts. However, he remains optimistic that Boeing will resolve its issues.
  • SoftBank’s Arm Holdings AI Chips: Arm Holdings, owned by SoftBank Group, plans to develop artificial intelligence (AI) chips, aiming for the first products to launch in 2025.
  • OceanaGold Corp IPO: OceanaGold Philippines Inc, a subsidiary of Toronto-listed miner OceanaGold Corp, saw its shares decline on its trading debut after a 6.078 billion pesos initial public offering (IPO). This marks the Philippines’ first IPO this year and the first public debut for a mining firm since 2012. OceanaGold Philippines aims to provide substantial dividend returns to its shareholders from its mining operations, with future dividends to be declared and paid quarterly.
  • On Monday, GameStop’s stock (GME) surged by up to 110% before leveling off, prompting several halts due to high volatility. This spike followed a post by “Roaring Kitty,” who is credited with igniting the meme stock craze during the pandemic, marking his first online activity since 2021.

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