Stock Market Update & Analysis: August 2, 2024

Global Markets

Canada

The TSX declined over 2 percent today, driven by concerns stemming from weak U.S. unemployment data. This data suggested a slower-than-expected economic recovery in the USA.  Oil also pressured the TSX by dropping over 3 percent in trading.

USA

American markets also dropped significantly, with the Nasdaq leading the downward charge. This negative performance is largely attributed to the disappointing jobs report, which revealed an increase in unemployment and heightened fears of a potential recession.

Japan & China

The Nikkei closed nearly 6% lower, marking its worst session in over four years. This sharp decline reflects investor concerns about economic conditions and market stability in Japan. Chinese markets dropped almost one percent, as concerns over the economic downturn persists, as investors are critical of government support.

Europe & UK

European shares followed the global trend and declined, overshadowing positive corporate earnings releases. Most major indexes saw a 2 percent decline, as American data reaffirmed investor jitters. The new UK government announced they are pulling back on AI investments, which were set to invigorate the economy.

Currency Movements

The U.S. dollar has slipped due to ongoing economic concerns, which has led to a rise in traditional safe-haven currencies such as the Swiss franc and Japanese yen. This shift reflects investor preferences for stability amidst the current market turmoil.

Top Stock News

• AES Corp: Beat second-quarter profit estimates but saw a 2.8% decline in total revenue, while maintaining its 2024 earnings forecast.
• Alliant Energy Corp: Missed second-quarter profit estimates due to higher operating costs and weak demand but reaffirmed its full-year earnings forecast.
• Amazon.com Inc: Slowing sales growth and cautious consumer spending led to a revenue forecast below Wall Street targets.
• Apple Inc: Third-quarter iPhone sales exceeded expectations, but its China business disappointed, betting on AI for future growth.
• Atlassian Corp: Projected lower-than-expected revenue growth for fiscal 2025, causing its shares to decline.
• Bio-Rad Laboratories Inc: Cut its annual revenue growth forecast due to weak biotech demand but reported a second-quarter profit above estimates.
• Block Inc: Raised its annual adjusted core earnings forecast and announced a $3 billion buyback plan, boosting its shares.
• Booking Holdings Inc: Forecast lower room night growth for Q3 despite beating second-quarter revenue and profit estimates.
• Camden Property Trust: Exceeded second-quarter FFO estimates, supported by strong rental demand, though new-lease rates declined.
• Celanese Corp: Lowered its 2024 earnings forecast amid weak demand and production issues, missing Wall Street estimates for second-quarter profit.
• Chevron Corp: Second-quarter earnings fell short of estimates due to lower refining margins and natural gas prices.
• Cloudflare Inc: Raised its annual revenue and profit forecasts after a strong quarter, with its shares rising.
• Clorox Co: Forecasted annual profit above estimates after beating fourth-quarter results, driven by price hikes and easing input costs.
• Coinbase Global Inc: Second-quarter revenue exceeded expectations as trading volumes surged, sending shares up.
• Consolidated Edison Inc: Beat second-quarter profit estimates due to increased energy demand but faced higher operating expenses.
• Coterra Energy Inc: Missed second-quarter profit estimates due to weak natural gas prices despite higher operating revenues.
• DoorDash Inc: Forecasted strong third-quarter core profit and exceeded revenue estimates for the June quarter, lifting its shares.
• EOG Resources Inc: Beat second-quarter profit estimates with higher oil production and forecasted stable production for Q3.
• Enbridge Inc: Missed market estimates for second-quarter profit due to lower Canadian gas transmission income, with adjusted profit falling short.
• Exxon Mobil Corp: Posted a strong second-quarter profit and increased its output target, surpassing Wall Street expectations.
• Gen Digital Inc: Forecasted second-quarter revenue above estimates, but adjusted profit per share fell short of expectations.
• GoDaddy Inc: Raised its 2024 revenue forecast due to strong demand, with second-quarter results exceeding estimates.
• Intel Corp: Announced major job cuts, suspended dividends, and forecasted below-market third-quarter revenue, setting up for its worst selloff since 2000.
• Linde PLC: Reported slightly better-than-expected second-quarter results and projected modest earnings growth for Q3.
• Magna International Inc: Missed estimates for second-quarter results and lowered its 2026 sales forecast due to production stoppages and lower vehicle volumes.
• Mettler-Toledo International Inc: Forecasted third-quarter profit below estimates despite beating second-quarter expectations and raising its 2024 profit forecast.
• Microchip Technology Inc: Forecasted lower second-quarter net sales and a decline from last year’s revenue but reported adjusted profit above expectations.
• Monolithic Power Systems Inc: Forecasted higher third-quarter revenue due to strong demand in AI applications, surpassing estimates.
• Motorola Solutions Inc: Raised its full-year revenue and profit forecast after strong quarterly results, exceeding analysts’ expectations.
• MP Materials Corp: Reported a larger-than-expected second-quarter loss due to falling rare earth prices but anticipated a rebound.
• Prudential Financial Inc: Second-quarter adjusted profit rose as its U.S. unit benefitted from higher underwriting and investment returns.
• Regency Centers Corp: Raised its annual FFO forecast after beating second-quarter estimates, supported by steady leasing demand.
• Roku Inc: Exceeded second-quarter revenue estimates and reduced its loss, benefiting from strong ad sales and increased streaming households.
• Snap Inc: Forecasted lower third-quarter results amid competition and missed second-quarter revenue estimates.
• Ventas Inc: Increased its annual FFO forecast due to strong performance in assisted living and senior housing, though its forecast midpoint was below estimates.
• Vertex Pharmaceuticals Inc: Raised its annual revenue forecast due to high demand for cystic fibrosis treatments but reported a second-quarter loss due to acquisition costs.
• Victoria Gold Corp: Faces a First Nation group’s demand for management removal due to environmental damage at its Eagle Gold mine.
• Vitol: Agreed to acquire Hong Kong-based Noble Resources Trading Ltd to expand its coal trading business.