Stock Market Analysis & News: Sept 16th, 2024

Global Markets

• Canadian Markets: Canada’s TSX stock rose on a increase in the oil price, while the Trudeau government added new mortgage rules to win over young voters. Air Canada’s pilots agreed to a deal, which saw the company’s stock jump over 3 percent as a result.
• American  Markets: American markets were mixed as traders and investors adopted a cautious stance ahead of the Federal Reserve’s policy decision. . While a rate cut generally supports stock prices by reducing borrowing costs and encouraging investment, a more aggressive reduction could signal that the Federal Reserve anticipates a sharper slowdown in economic growth. .

European and Asian Markets

• European Markets: European markets were mostly down as a  cautious sentiment among traders and investors arose, linked to the anticipation of upcoming economic data releases and geopolitical developments. Investors are preparing for a potentially volatile week as significant data and policy decisions are expected. UK markets were flat as the technology sector came under pressure.  Data released showed UK house prices had risen on the back of the previous interest rate reductions.
• Japanese Markets: Japan’s stock market dropped as data released today showed Japan’s economy grew slower than forecasts.  Japan’s GDP  grew 2.9% in the second quarter of 2024, against a estimated 3.2% rate.
• Chinese Markets:  Chinese markets dropped from disappointing factory data in China, which dampened market sentiment.

Corporate Stock News

• Advanced Micro Devices Inc & Intel Corp Intel lost a contract to design and fabricate the PlayStation 6 chip to Advanced Micro Devices (AMD) in 2022. This setback significantly affected Intel’s efforts to build its contract manufacturing business.
• Alcoa Corp Alcoa announced it would sell a 25.1% stake in its Ma’aden joint venture to Saudi Arabian mining company Ma’aden for $1.1 billion. The deal, expected to close in the first half of 2025, includes 86 million shares of Ma’aden and $150 million in cash.
• Apollo Global Management Inc Apollo Global signed a $1 billion deal with BP to fund a stake in the Trans Adriatic natural gas pipeline. Apollo will become a non-controlling shareholder in BP’s unit holding a 20% stake in the pipeline, with the deal expected to close in Q4 2024.
• Archer-Daniels-Midland Co The U.S. EPA found Archer-Daniels-Midland in violation of federal drinking water rules at its carbon sequestration facility in Illinois, citing unauthorized carbon dioxide leakage and failure to follow emergency response plans.
• AT&T Inc AT&T and TPG are in talks to merge their DirecTV service with EchoStar’s Dish, potentially creating the largest pay-TV provider in the U.S. The deal would face antitrust scrutiny but might clear regulatory hurdles due to the expanded market landscape.
• Blackstone Inc Temasek is nearing a deal to acquire a 20% stake in Blackstone-owned VFS Global, which is valued at approximately $7 billion. Blackstone will retain the majority stake in VFS Global.
• Boeing Co A strike by more than 30,000 Boeing workers has entered its fourth day. Negotiations between Boeing and the union are scheduled to resume on Tuesday.
• Cencora Inc, Johnson & Johnson & McKesson Corp Baltimore’s $11 billion lawsuit against Johnson & Johnson, McKesson, and Cencora over opioid addiction and overdose deaths is set to go to trial this week. The city accuses the companies of negligence and misleading practices.
• Eli Lilly and Co Eli Lilly’s eczema drug, Ebglyss, has been approved by the FDA for use in adults and children over 12. The drug, already approved in Europe and Japan, will become available in the U.S. soon.
• Exxon Mobil Corp Exxon Mobil faces potential protests in France over the reorganization of its Port Jerome facilities. The site has lost over $555 million since 2018, leading to job cuts and facility closures.
• Fox Corp & News Corp A court battle over Rupert Murdoch’s media empire’s succession begins in Reno, Nevada. Murdoch aims to ensure his eldest son, Lachlan, controls Fox and News Corp after his death.
• Icahn Enterprises LP Icahn Enterprises won the dismissal of a lawsuit alleging it inflated its share price to secure large personal loans. The court found no material misrepresentations or fraudulent intent.
• KKR & Co Inc KKR and Mathias Doepfner are negotiating a deal to split up Axel Springer, with KKR potentially gaining majority control of the company’s profitable classifieds business.
• Marathon Petroleum Corp Marathon and the Teamsters union are set to meet with a federal mediator to negotiate a new contract after over 200 workers at the Detroit refinery went on strike on Sept. 4.
• Pfizer Inc Pfizer aims to boost awareness and testing for a rare lung cancer mutation to increase the use of its drug Braftovi. The drug, which has shown promising results in clinical trials, may become a standard treatment.
• QXO Inc Rexel shares rose after rejecting QXO’s preliminary takeover offer, which Rexel deemed undervalued. QXO’s bid valued Rexel at about $9.4 billion.
• Target Corp Target plans to hire about 100,000 seasonal employees for the upcoming holiday period, maintaining the same hiring levels as in previous years.
• United States Steel Corporation The U.S. national security panel is reviewing Nippon Steel’s $14.9 billion bid for U.S. Steel. Both companies have sent a letter to President Biden regarding the deal.
• Vista Outdoor Vista Outdoor announced that Czechoslovak Group (CSG) will buy a 7.5% stake in its sporting gear unit for $150 million. CSG’s proposed deal values Vista’s outdoor business at $2 billion.
• Walt Disney Co Disney and DirecTV have reached an agreement restoring college football and other programming to DirecTV subscribers after a dispute over contract renewal.
• Wells Fargo & Co Wells Fargo faces extended regulatory restrictions due to insufficient anti-money laundering measures. The bank’s efforts to address past issues, including a 2016 fake accounts scandal, may prolong existing penalties.