Market Analysis & Stock News: Sept 10th, 2024

Global Markets

Canada

• Canada’s TSX dropped over half a percent, as oil prices slumped almost 4 percent, dragging down the energy sector. Gold rose slightly helping gold stocks offset some of the downside.

U.S.A

• U.S. stocks traded mixed, as investors awaited a key consumer price inflation report. This report, set for release later in the week, is anticipated to provide insights into the current inflationary pressures affecting the economy. The report for August is expected to show a slight moderation in the annual headline inflation rate, projected to ease to 2.6% from previous levels. On a monthly basis, inflation is anticipated to remain stable at 0.2%. The outcome of this report will be crucial for market expectations and potential Federal Reserve policy adjustments.

Europe

• European stocks were red across the board , as dated showed the EU economy was continuing to slow.
• UK markets were down almost 1 percent as data showed UK wage growth slowed again in the latest quarter.

Asia

• Japan: The Nikkei index in Japan fell for the sixth consecutive session. This extended decline reflects ongoing concerns over domestic economic conditions and market sentiment.
• China: Chinese stocks ended the trading day slightly higher. Investors were evaluating recent trade data from the region, which provided mixed signals about economic health and trade dynamics.

Corporate Stock News

• Alibaba Group Holding Ltd: Alibaba will be included in China’s Stock Connect cross-border investment scheme, linking the Shenzhen and Shanghai stock exchanges with Hong Kong. This follows Alibaba’s transition to a dual primary listing, expected to attract significant investments from mainland China.
• Apple Inc: Apple lost its appeal against a €14.4 billion tax order from the EU, which said it benefited from favorable Irish tax rulings. Separately, its new iPhone launch faced criticism in China for lacking AI features amid growing competition from Huawei.
• AngloGold Ashanti PLC: AngloGold Ashanti will acquire Centamin in a $2.5 billion deal to expand its African operations. Centamin shareholders will receive shares and cash, and the deal is expected to enhance free cash flow per share.
• Azul SA: Brazilian airline Azul expects its annual net revenue to reach about $3.58 billion, a 7% increase from last year. The company maintains its 2024 financial guidance.
• Boeing Co: Boeing is delaying a key production milestone for the 737 MAX by six months and has faced worker dissatisfaction over a new labor contract. Production targets remain unchanged, but the delay reflects ongoing production challenges.
• Centene Corp: Centene forecast third-quarter profit below Wall Street estimates, with an anticipated higher medical loss ratio for Medicaid plans. The company reaffirmed its annual profit forecast.
• Church & Dwight Co Inc: A lawsuit claims Trojan condoms contain toxic “forever chemicals” linked to cancer, seeking at least $5 million in damages. The complaint alleges that these chemicals are present in Trojan Ultra Thin condoms.
• Equinor ASA: Equinor discovered gas and oil in the Norwegian Sea, with estimates of 2 to 4 million standard cubic meters of recoverable oil equivalent. The company is the operator of the prospect.
• Goldman Sachs Group Inc: Goldman Sachs expects a 10% drop in trading revenue for the third quarter due to sluggish market conditions in August. The bank is focusing more on consumer business.
• HSBC: HSBC is considering merging its Commercial and Investment banking divisions to cut costs and eliminate overlapping roles.
• Hewlett Packard Enterprise Co: HPE announced a $1.35 billion preferred stock offering to fund its acquisition of Juniper Networks, causing a drop in its share price.
• Jabil Inc: Jabil will invest about $238.2 million to build a new manufacturing plant in Tamil Nadu, India, creating around 5,000 jobs and enhancing its production capabilities in the region.
• Nomura Holdings Inc: Nomura aims for up to 30% revenue growth in trading over the next three years, focusing on expanding its services to hedge funds and improving risk management and technology.
• NextDecade Corp: NextDecade plans to appeal a court ruling that overturned the Federal Energy Regulatory Commission’s approval of its $18.4 billion Rio Grande LNG project. The company hopes to continue construction while pursuing the appeal.
• Oracle Corp: Oracle beat quarterly earnings estimates and forecast higher second-quarter revenue growth, driven by strong demand for its cloud services. Its cloud revenue rose 21% to $5.6 billion.
• Shell: Shell is shutting down oil production at its Perdido offshore platform in the U.S. Gulf of Mexico due to downstream impacts.
• Under Armour Inc: Under Armour expects higher-than-forecast restructuring costs, estimating $140 million to $160 million in charges for fiscal 2025 and 2026. The company also revised its earnings outlook for 2025.
• United Parcel Service Inc: UPS will acquire Germany-based Frigo-Trans and its sister company BPL to enhance its healthcare cold-chain facilities in Europe. The transaction is expected to close in early 2025.
• Tesla Inc: The EU will lower proposed final tariffs on Tesla vehicles to 7.8% and slightly adjust rates for other Chinese electric vehicles. Tesla’s revised tariff rate reflects the company’s cooperation with the EU investigation.