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Market Analysis & Top Stock News: Sept 17th, 2024

Stock Target Advisor - Tue Sep 17, 12:12PM CDT

Global Markets

Canadian Markets:

Canada’s TSX Composite dropped after opening higher, as the inflationary report showed that Canada’s annual inflation rate dropped to 2 percent for the month of August. The inflation rate is now at the Bank of Canada’s 2 per cent target mark,  which opens the door for further and more aggressive rate cuts. Housing starts were also showed dropping by 22 percent for the month of August.

American Markets:

U.S. stock indexes came off their highs as investors braced for the Federal Reserve’s upcoming policy decision. Retail sales for the month of August rose 0.1% in August against an expected  0.2% decrease.

European Markets: European markets, including the FTSE 100, reached two-week highs. This positive momentum is largely due to expectations of a 50-basis point rate cut by the Federal Reserve, which could ease financial conditions and benefit European markets.

Japanese Markets: The Nikkei 225 Index in Japan fell, primarily due to concerns about a stronger yen. A stronger yen can hurt Japanese exporters by making their products more expensive in international markets, thus impacting corporate earnings negatively..

Corporate Stock News

  • Albertsons Companies Inc & Kroger Co: The antitrust trial for Kroger’s $25 billion acquisition of Albertsons concludes on Tuesday, with additional legal challenges expected to address potential impacts on grocery prices.
  • Amazon.com Inc & Intel Corp: Intel will produce custom AI chips for Amazon Web Services (AWS), marking a significant contract for Intel’s foundry business. Intel also announced a delay in its German chip factory project.
  • Alimentation Couche-Tard Inc: The classification of Seven & i Holdings, the parent company of 7-Eleven, as “core” to Japanese national security is unlikely to impede a potential buyout by Canada’s Alimentation Couche-Tard. Japan’s finance minister’s comments aimed to reassure investors and mitigate takeover concerns.
  • Bank of America Corp & Citigroup Inc: Bank of America has hired Citigroup’s former Chief Accounting Officer, Johnbull Okpara, to fill the same role at Bank of America, replacing Rudolf Bless.
  • BP: BP announced plans to sell its U.S. onshore wind energy business as it refocuses on other growth areas.
  • Boeing Co: Negotiations with Boeing’s largest union continue amid a strike that is costing the company an estimated $100 million daily. The FAA will also review Boeing’s quality improvement plan.
  • Banco Bilbao Vizcaya Argentaria SA: BBVA has no plans to increase its offer for Sabadell, with the Spanish government holding the final say on the merger.
  • Church & Dwight Co Inc: CEO Matthew Farrell will step down after nearly 20 years, with CFO Rick Dierker set to succeed him as CEO on March 31 next year. Farrell will continue as chairman of the board during the transition.
  • DraftKings Inc & Flutter Entertainment PLC: Major League Baseball’s players union has sued DraftKings and FanDuel, alleging unauthorized use of player names and likenesses in sports betting platforms.
  • First Quantum Minerals Ltd: The Canadian miner has introduced a voluntary retirement scheme for employees at its Cobre Panama mine. This decision comes as the Panamanian government, under President Jose Raul Mulino, delays action on the mine until early 2025.
  • Flutter Entertainment PLC: Flutter, the world’s largest gambling company, will acquire Snaitech for $2.6 billion from Playtech. This acquisition will bolster Flutter’s position in the Italian gambling market and is expected to immediately benefit its earnings per share.
  • Meta Platforms Inc: Meta is banning Russian state media networks RT and Rossiya Segodnya from its platforms for deceptive online influence operations. Additionally, Meta has extended its partnership with EssilorLuxottica for smart eyewear development.
  • Microsoft Corp: Microsoft’s board has approved a new $60 billion share buyback program and declared a quarterly dividend increase of 10%. The annual shareholders meeting is scheduled for December 10.
  • Paramount Global: Paramount and RTL have withdrawn their bid to merge Super RTL with Nickelodeon due to regulatory concerns from the German cartel office about advertising space for children.
  • Steel Dynamics Inc: The company expects third-quarter profits to fall short of Wall Street estimates due to lower steel prices, forecasting earnings between $1.94 and $1.98 per share compared to the $2.10 estimate.
  • Stellantis NV: The Italian government will reallocate $222.78 million in EU funds initially intended for Stellantis’s battery-making plant in Termoli. Uncertainty remains regarding the timing of construction for this and other European gigafactories.
  • Starbucks Corp: Michael Conway, CEO of Starbucks North America, is retiring after about 11 years. The company will not appoint a replacement for his role; instead, North America’s retail operations will report directly to CEO Brian Niccol.
  • Tupperware Brands Corp: Tupperware is preparing to file for bankruptcy this week following prolonged debt negotiations, with over $700 million in debt reported.
  • United Auto Workers: The UAW has filed unfair labor practice charges against Stellantis for alleged violations of a labor contract reached last fall.