Market Analysis & Stock News: January 29th, 2025
Global Market Update
Canadian Markets
Canada's main stock index traded higher as investors remained cautious as the Bank of Canada (BoC) cut interest rates by a quarter of a percent, Policymakers justified the move by citing softer economic data and concerns over the potential impact of recently proposed U.S. tariffs on Canadian exports.
American Markets
The Federal Reserve held interest rates steady, pausing after three consecutive rate cuts. Investors will closely scrutinize Fed Chair Jerome The decision comes amid mixed economic indicators, with recent reports suggesting resilient consumer spending but signs of cooling in the manufacturing and housing sectors.
On Wall Street all indexes were moving in the red with the Nasdaq Composite slipping despite a boost from ASML's strong earnings report. The index faced downward pressure as traders shifted their focus toward upcoming corporate earnings, with concerns over high valuations in the tech sector weighing on sentiment.
European Markets
European shares closed at a record high, led by gains in technology stocks. . However, overall market gains were tempered by LVMH's underwhelming sales figures, which dampened sentiment in the luxury goods sector. The French conglomerate, a bellwether for global consumer spending, reported weaker-than-expected revenue growth, raising concerns about slowing demand in key markets, particularly China.
As global markets navigate central bank decisions, corporate earnings, and geopolitical risks, investors remain focused on key economic data releases and potential shifts in monetary policy that could impact financial conditions in the coming months.
Corporate Stock News
Alibaba Group Holding Ltd: Released a new version of its Qwen 2.5 AI model, claiming it surpassed DeepSeek-V3 and OpenAI's GPT-4o.
American Axle & Manufacturing Holding Inc: Will buy GKN Automotive owner Dowlais in a cash-and-stock deal valued at about $1.44 billion.
Apple Inc: Apple expected to report tepid quarterly revenue growth due to slow AI adoption and competition in China.
Apple Inc & T-Mobile US Inc: iPhone devices are now eligible to test SpaceX's Starlink direct-to-cell capability.
ASML Holding NV: Reported Q4 bookings of €7.09 billion, far exceeding expectations due to AI-driven demand.
Azul SA: Finalized a debt restructuring process, eliminating nearly $1.6 billion in debt and raising $525 million in fresh funds.
Boeing Co: BofA Global Research raised its target price to $185 from $170, citing improving operations.
BXP Inc: Forecast full-year FFO below estimates, impacted by high mortgage rates affecting office space demand.
Cardinal Health Inc, Cencora Inc & McKesson Corp: A West Virginia city urged a court to revive a $2.5 billion lawsuit against them for allegedly fueling the opioid crisis.
Chubb Ltd: Reported a rise in Q4 profit, helped by underwriting gains and investment returns.
Clorox Co: CFO Kevin Jacobsen will step down and be succeeded by Luc Bellet in April.
Danaher Corp: Missed Q4 profit estimates due to weak demand for biotech and pharmaceutical tools.
F5 Inc: Raised its full-year 2025 revenue growth forecast to 6%-7%; shares rose 13% post-earnings.
F5 Inc: Piper Sandler raised its target price to $304 from $246 after strong Q1 revenue.
Henry Schein Inc & KKR & Co: KKR took a large stake in Henry Schein and will get two board seats.
Honda Motor Co Ltd: Recalling 294,612 vehicles in the U.S. due to software issues that may cause engine stalls.
Intel Corp: Investor scrutiny at INTC is high ahead of earnings after CEO Pat Gelsinger was ousted.
Kohl's Corp: Reduced nearly 10% of its corporate workforce to improve profitability.
Logitech International SA: Raised its full-year forecast after a strong pre-holiday quarter.
Lucid Group Inc: Appointed Taoufiq Boussaid as its new CFO, replacing interim CFO Gagan Dhingra.
Microsoft Corp: Investigating unauthorized data access linked to Chinese AI startup DeepSeek.
Nasdaq Inc: Reported a higher Q4 profit, driven by demand for financial technology products.
Otis Worldwide Corp: Missed Q4 profit estimates and forecast 2025 profit below expectations.
Packaging Corp of America: Reported Q4 profit below estimates due to weaker seasonal demand.
Quebecor Inc: TD Cowen raised target price to C$40, citing better subscriber familiarity and service improvements post-Freedom Mobile acquisition.
Sony Group Corp: President Hiroki Totoki will become CEO, while Lin Tao will be the first female CFO.
Starbucks Corp: SBUX reported a smaller-than-expected 4% drop in Q1 comparable sales.
Stellantis NV: Acquired full control of its joint venture with Punch Powertrain to strengthen its hybrid technology.
Stryker Corp: Beat Q4 profit estimates and will sell its U.S. spinal implants business to Viscogliosi Brothers.
Sumitomo Mitsui Financial Group Inc: Reported a 54% surge in Q3 profit, putting it on track for a record annual profit.
Telefonica SA: Hired JPMorgan to explore selling its Argentina business, with potential buyers including Millicom and Iliad.
T-Mobile US Inc: Forecast 2025 postpaid customer additions between 5.5 million and 6 million, above expectations.
Vale SA: Vale posted its highest annual iron ore production since 2018 despite a Q4 sales decline.
Zimmer Biomet Holdings Inc & Paragon 28 Inc: Zimmer Biomet will acquire Paragon 28 for about $1.1 billion to expand its orthopedic portfolio.
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