Stock Market Analysis & Top Stock News: Sept 18th, 2024

Global Markets

Canadian Markets

Canada’s TSX dropped initially, as oil prices fell over 1 percent, and gold prices rose slightly. The TSX rose after the Federal Reserve cut interest rates by a half of a percent. Canadian market analysts are warning investors that the TSX is at an inflection point, and recommends selling Canadian stock positions as they believe a hard landing for the economy is imminent.

US Markets

American stock markets traded the day in a volatile fashion as investors anticipated the Federal Reserve’s first interest rate cut in over four years.  Markets rose across the board, after the Federal Reserve cut interest rates, as traders and investors examine Powell’s diction for future policy trends.

Japanese Markets

Japan’s Nikkei index saw a modest rebound, buoyed by a softer yen, which lately dictates market direction.

Chinese Markets

Chinese stocks closed higher, driven by gains in the property and financial sectors, indicating some recovery in investor sentiment following regulatory challenges earlier in the year.

European Markets

European shares edged lower as investors opted to remain cautious. The UK stock market notably underperformed, with the British pound appreciating slightly as service sector inflation accelerated in August. This inflationary pressure raises questions about the Bank of England’s potential policy responses, adding another layer of complexity to market dynamics.

Corporate Stock News:

• 23andMe Holding Co: Independent directors resigned from the board after rejecting a take-private offer from CEO Anne Wojcicki, who proposed to acquire outstanding shares for $0.40 each.
• Alphabet Inc & Qualcomm Inc: Google won a legal challenge against a €1.49 billion EU antitrust fine, while Qualcomm’s penalty was reduced to €238.7 million.
• Amazon.com Inc: Samir Kumar was named as the new head of Amazon India, effective October 1, to tackle competition and regulatory pressures.
• Arko Corp: Plans to divest its convenience store operations, valued at around $2 billion, amid declining sales.
• Barrick Gold Corp: Suspended operations at its Porgera gold mine in Papua New Guinea due to tribal violence, halting most activities until September 19 for employee safety.
• BlackRock Inc & Microsoft Corp: Announced a partnership to create a $30 billion fund for AI infrastructure, potentially mobilizing $100 billion with debt financing.
• Blink Charging Co: Announced a 14% workforce layoff to reduce costs, aiming for annual savings of about $9 million.
• Boeing Co: Restarting contract negotiations with its largest union with federal mediators present after previous discussions failed to address key issues.
• Equinor ASA: Orsted signed a 10-year agreement to sell 330,000 tonnes of carbon dioxide removal credits to Equinor.
• General Motors Co: Reached a tentative agreement with Unifor regarding wages and job security for the Ingersoll, Ontario plant.
• Intuitive Machines Inc: Secured a contract from NASA worth up to $4.82 billion for navigation and communication services for near-space missions.
• Kinaxis Inc: Hedge fund Irenic Capital urged the company to consider a sale, highlighting interest from financial sponsors.
• Meta Platforms Inc: Facing a potential fine in the EU for anti-competitive practices and agreed to purchase carbon offset credits from BTG Pactual.
• Novo Nordisk A/S: Anticipates that its diabetes drug Ozempic will likely be included in the U.S. government’s 2027 price negotiations.
• Shell PLC: A German court suggested that Rosneft’s complaint against Shell’s stake sale in Schwedt refinery is unlikely to succeed.
• Southwest Airlines Co: Activist investor Elliott Investment Management expressed its intention to replace CEO Robert Jordan and push for changes in leadership.
• Stellantis NV: The United Auto Workers union is set to hold strike authorization votes amid unresolved issues with the company regarding production commitments.
• TotalEnergies SE: Turkish state energy company Botas signed a 10-year LNG import agreement with TotalEnergies beginning in 2027.
• Tupperware Brands Corp: Filed for Chapter 11 bankruptcy protection due to ongoing financial challenges and poor demand.
• United States Steel Corp: The national security panel reviewing Nippon Steel’s $14.9 billion bid for U.S. Steel has allowed a refiling, delaying the decision until after the presidential election.
• Walt Disney Co: Disney’s Star India is seeking $940 million in damages from Zee Entertainment over a terminated cricket broadcasting agreement.
• Universal Music Group: Expects over 10% annual core profit growth through 2028, driven by increased subscription revenue and partnerships.
• Reckitt Benckiser: Initiated discussions with potential buyers for its homecare assets, valued at over £6 billion.