Market Analysis: July 16th, 2025
Canadian Markets
Canada's TSX index rose on Wednesday, lifted by gains in gold and oil prices, as investors sought safe-haven assets amid growing concerns over inflation linked to global tariff tensions. The commodity-heavy index benefited from rising resource prices, with gold rallying as inflationary fears pushed investors into traditional hedges. Housing starts in Canada unexpectedly rose by 0.4% in June, defying forecasts of a slowdown and signaling continued resilience in residential construction. Statistics Canada reported that the income gap between the highest- and lowest-earning households hit a record high in Q1, highlighting growing economic disparity.
American Markets
U.S. stocks edged moderately higher in afternoon trading, but the broader tone was subdued as investors weighed the implications of the government's escalating tariff policies, in which are contributing to inflation concerns. According to the Federal Reserve's Beige Book report, economic activity expanded slightly in recent weeks, but the outlook remained neutral to slightly pessimistic. Businesses cited that higher tariffs—are still exerting upward pressure on input costs, dampening optimism for the second half of the year.
European Markets
European equities fell, dragged down by a disappointing outlook from ASML Holding NV, the region's largest chipmaking equipment supplier. ASML warned of a potential stall in growth by 2026, citing delayed investment decisions by U.S.-based chipmakers due to tariff uncertainty.
Renault shares plunged after the automaker issued a profit warning, adding further pressure to the region's auto sector. Broader sentiment in Europe was also weighed by ongoing trade negotiations and a mixed start to corporate earnings season.
In the UK, stocks declined after data showed that annual inflation unexpectedly accelerated to 3.6% in June, up from 3.4% the previous month. The rise was attributed to higher food prices and a smaller-than-expected decline in fuel prices, compared to the same period last year. The core inflation rate, which excludes volatile food and energy prices, rose to 3.7% from 3.5%, exceeding economists' expectations. The surprise increase adds pressure on the Bank of England, which is already walking a tightrope between controlling inflation and supporting economic growth.
Corporate News
Airbnb Inc
Jefferies raised its target price to $165 (from $155), citing expected revenue growth due to consumer preferences for alternative accommodations.
ASML Holding NV
Warned of potential flat growth in 2026, as U.S.-based chipmakers delay investment due to tariff uncertainties.
Q2 net bookings totaled €5.54B, 25% above analysts' expectations of €4.44B.
AstraZeneca PLC
Its experimental therapy anselamimab failed to meet the main endpoint in a late-stage trial for treating heart-related AL amyloidosis.
Aura Minerals Inc
Plans to raise $196.4M via a U.S. IPO, with proceeds directed toward exploration and improving financial flexibility for growth.
Barclays PLC
Fined £42M by UK regulators for money laundering failings, notably tied to bullion business Stunt & Co and WealthTek.
BHP Group Ltd
Claimed it's too costly for Australia to build a green iron industry, even with policy support, citing cheaper production in the Middle East and China.
BlackRock Inc
TD Cowen cut its target price to $1,252 (from $1,261), reflecting slower-than-expected net organic growth and higher expenses.
Citigroup Inc
Plans to boost investment banking headcount in Japan by 10–15% and expand hiring in Australia to accelerate Asia-Pacific growth.
Cognizant Technology Solutions
The SEC dropped a civil bribery case against two former executives, following the DOJ's earlier decision to abandon related criminal charges.
Duolingo Inc
Jefferies cut its target price to $400 (from $500), citing concerns over slowing momentum and weak consumer engagement.
Ford Motor Co
Recalling 694,271 SUVs (Bronco Sport and Escape, 2020–2024 models) in the U.S. due to a fuel leak risk potentially leading to fires. J.B. Hunt Transport Services Inc
Reported a Q2 revenue of $2.93B, slightly ahead of estimates.
Intermodal volumes rose 5.6% YoY, while other segments (ICS and Final Mile) saw revenue declines of 3.7% and 10.5% respectively due to weaker demand.
Johnson & Johnson
Beat Q2 estimates, earning $2.77 per share (vs. $2.68 expected), with revenue of $23.74B. Raised FY sales forecast to $93.2–$93.6B, up from previous $91–$91.8B.
JPMorgan Chase & Co
Piper Sandler raised the target price to $320 (from $295) following strong Q2 results and upward guidance revision.
Meta Platforms Inc
Facing a $8B lawsuit over allegations that Facebook leadership violated a 2012 FTC agreement by harvesting user data.
Nvidia Corp
CEO Jensen Huang confirmed the company will ramp up supply of China-compliant H20 chips and aims to expand advanced semiconductor offerings in China. Bank of America raised its target price on Nvidia to $220 from $180, while Jefferies raised its target price to $200 from $185.
Omnicom Group Inc
Q2 revenue beat at $4.02B (vs. $3.96B expected), with 8.2% growth in advertising and media.
Reported adjusted EPS of $2.05, and expects to finalize Interpublic Group acquisition later this year after antitrust approval.
Reddit Inc
Jefferies raised the target price to $175 (from $170), citing stronger ad impression potential and ad rate optimization.
Stellantis NV
Discontinued its hydrogen vehicle program, citing lack of mid-term economic viability and instead focusing on EVs and hybrids.
TMX Group Ltd
TD Cowen raised the target price to C$57 (from C$54), citing strong Q2 performance, especially in trading and capital markets activity.
TotalEnergies SE
Q2 earnings expected to decline due to a 20% drop in Brent crude prices, despite a 2.5% increase in hydrocarbon production.
UBS Group AG
Rehired Masazumi Toriyama to lead its Japanese global banking division, part of a broader push to increase headcount by 50% in that division.
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