Market News & Analysis: Oct 30th

Global Markets

Canadian Markets

Canada’s main stock index, the TSX Composite  dropped despite rising prices for oil and gold, signaling investor caution amid mixed market signals.

American Markets

American markets were trading in a weak fashion, as AMD’s disappointing quarterly results weighed heavily on the tech sector, overshadowing a positive earnings report from Google that helped lift its stock.

Traders are also sitting on the sidelines as the US election nears adding to significant market risk.

European Markets

In Europe, shares slid to their lowest level in over a month, primarily due to disappointing earnings from Volkswagen, which dented investor confidence and heightened concerns about economic growth. The negative sentiment across European markets reflected broader concerns about corporate profitability amid ongoing inflationary pressures and geopolitical uncertainties.

Japanese Markets

Meanwhile, Japan’s Nikkei index climbed to a two-week closing high, buoyed by a strong performance from the Nasdaq, which had reached record highs in the previous session. This suggests a potential rebound in investor sentiment, possibly driven by optimism in the tech sector following the U.S. market’s performance.

Chinese Markets

In China stock indices dipped as investors remained cautious ahead of a key leadership meeting expected next week. This meeting is anticipated to unveil details regarding fiscal stimulus measures, with many traders looking for indications of economic support to boost growth amid ongoing challenges.

Corporate Stock News

Advanced Micro Devices Inc (AMD)

• Target Price: Cut to $185 from $210 by TD Cowen.
• Key Event: Weak revenue forecast for Q4 and 2025; AI chip sales forecast raised to $5 billion for 2025.

Alphabet Inc

• Target Price: Raised to $190 from $170 by D.A. Davidson.
• Key Event: Strong Q3 results driven by a 35% surge in cloud business and increased YouTube ad sales.

Bunge Global SA

• Key Event: Exceeded Q3 profit expectations, benefiting from higher volumes in grain trading and oilseed processing.

Caesars Entertainment Inc

• Key Event: Reported a surprise Q3 loss due to competition and construction-related disruptions.

Caterpillar Inc

• Key Event: Lowered full-year revenue forecast amid higher borrowing costs and reduced machinery demand.

Chipotle Mexican Grill Inc

• Key Event: Missed Q3 same-store sales growth expectations due to higher menu prices and ingredient costs.

DaVita Inc

• Key Event: Q3 profit fell short of estimates, impacted by increased labor costs and patient care expenses.

Electronic Arts Inc

• Key Event: Raised fiscal 2025 bookings forecast due to strong performance of sports titles.

Eli Lilly & Co

• Key Event: Missed Q3 profit estimates, affected by higher manufacturing costs and an acquisition-related charge.

First Capital REIT

• Target Price: Raised to C$21 from C$19 by CIBC.
• Key Event: Reported solid Q3 results.

First National Financial Corp

• Target Price: Raised to C$44 from C$40 by CIBC.
• Key Event: Q3 earnings in line with analysts’ expectations.

FMC Corp

• Key Event: Beat Q3 profit estimates, helped by strong sales in North America and lower costs.

Humana Inc

• Key Event: Beat Q3 profit estimates, driven by strength in Medicare Advantage insurance.

McDonald’s Corp

• Target Price: Raised to $297 from $279 by Piper Sandler.
• Key Event: Robust Q3 earnings reported.

PayPal Holdings Inc

• Target Price: Raised to $90 from $80 by JPMorgan.
• Key Event: Anticipated growth in the Transaction Margin Dollar segment.

Reddit Inc

• Key Event: Reported first quarterly profit; Q4 revenue forecast above estimates.

Snap Inc

• Key Event: Beat Q3 revenue and user growth expectations, attracting advertisers with improved ad features.

Stryker Corp

• Key Event: Slightly raised annual profit forecast due to strong demand for medical devices.

Visa Inc

• Target Price: Raised to $330 from $320 by Jefferies.
• Key Event: Beat Q4 profit expectations; positive consumer spending trends noted.

Volkswagen AG

• Key Event: Reported a 42% drop in Q3 profit, facing challenges from high costs and weak demand in China.