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Globe and Mail
20-05-2025
- Business
- Globe and Mail
Market Analysis: May 20th, 2025
Global Market Update (About (STA Research): Is a Canadian investment research company specializing in advanced stock research and analysis. Our research team comprises of Financial Professionals). Canadian Markets Canada's TSX advanced on Tuesday, supported by positive inflation print, rising gold price and a more optimistic global economic tone. Investors are also positioning themselves ahead of potential updates on international trade negotiations, which could shape market direction in the coming weeks. According to Statistics Canada, the country's inflation rate fell to 1.7% in April, down from 2.3% in March, offering some relief to both consumers and investors concerned about persistent price pressures. The sharp drop in inflation was largely attributed to declining energy prices, driven by falling crude oil values and the removal of carbon taxes in several provinces, which significantly eased transportation and utility costs. The moderation in inflation could strengthen the case for the Bank of Canada to maintain or potentially even lower interest rates in future meetings, depending on further economic data. American Markets American markets were down, with the U.S. dollar also edging lower. Technology stocks lead the way down, with Nvidia leading the charge, followed by Meta, Google and Apple as traders locked in profits as summer trading approaches. Investors are awaiting a series of speeches from Federal Reserve officials to better understand the central bank's stance following the recent downgrade of the U.S. credit rating. Concerns remain over the long-term fiscal path of the U.S. government, but markets are hoping for clarity on how the Fed will manage interest rates in light of recent macroeconomic shifts, including stable inflation and mixed employment figures. European Markets European markets traded higher, buoyed by gains in utilities and telecom stocks, which tend to perform well in uncertain economic environments due to their defensive characteristics. Consumer confidence in the Euro zone also showed signs of improvement, with a 1.4-point increase in May, according to preliminary data from the European Commission. The flash estimate pegged Euro zone consumer morale at -15.2, a notable improvement from April's revised -16.6, suggesting that consumers are feeling slightly more optimistic about economic prospects as inflation cools and labor markets remain resilient. In the UK, the FTSE 100 index reached a two-month high, driven by strong corporate earnings. Shares of Diploma PLC, a specialized technical products distributor, hit record highs following a bullish earnings forecast, lifting broader market sentiment. A series of other upbeat earnings reports across sectors, including industrials and financials, contributed to the buoyant investor mood. Corporate Stock News Aeva Technologies Inc: Supplying lidar sensors to Airbus subsidiary UpNext for autonomous taxiing aircraft projects. Sensors to be tested on an A350-1000 and ground vehicles at Toulouse-Blagnac Airport. Alphabet Inc: Waymo received California approval to expand robotaxi operations in more areas including San Jose. However, no immediate service expansion planned. Bath & Body Works Inc: Barclays raised the target price to $35 from $31, citing a CEO change focused on driving profitable growth. Blue Owl Capital Inc: KBW upgraded rating to Outperform from Market Perform and increased the target price to $23 from $20, citing improving macroeconomic outlook. Boeing Co: Qatar defended its offer to gift a Boeing plane to Donald Trump, denying any intent to buy influence amid U.S. Senate scrutiny. ConocoPhillips: CEO Ryan Lance warned U.S. shale production will plateau by decade's end unless oil prices rise or technology advances. Dollar Tree Inc / Family Dollar: Appointed Duncan MacNaughton as CEO of Family Dollar. Sale to private equity expected to close in Q2 2025. MacNaughton previously held roles at Family Dollar and Walmart. FedEx Corp: Named John Smith as CEO of its freight spinoff, FedEx Freight. Smith previously led the unit and helped it grow through the pandemic. Freight separation announced in Dec 2024. General Motors Co: Ending exports to China via Durant Guild due to economic changes and trade tension. Export volumes were minimal. Hess Corp: Sued by Continental Resources for allegedly inflating midstream fees via internal deals, potentially costing Continental $69 million. Home Depot Inc: Beat Q1 sales estimates as demand remained resilient from contractors and DIY homeowners, supported by seasonal spending and past acquisitions like SRS Distribution. Intel Corp: Exploring divestiture of its Network and Edge group to focus on core PC and data center chip businesses under CEO Lip-Bu Tan. Nike Inc: Laying off tech division staff, shifting some responsibilities to third-party vendors. Comes as company struggles to regain consumer momentum. Perpetua Resources Corp: Received final federal permit for Stibnite antimony-gold project in Idaho. Project backed by Pentagon as part of U.S. efforts to secure critical minerals. Pfizer Inc: Licensing experimental cancer drug from China's 3SBio for $1.25B upfront and up to $4.8B in milestones. Also taking $100M equity stake in 3SBio. RTX Corp: In talks with the union representing 3,000 striking Pratt & Whitney workers over job security and pay. Strike affecting GTF engine production used in Airbus A320neo and F-35 jets. Target Corp: Barclays cut the target price to $102 from $140 following Q1 results that revealed significant challenges ahead. Uber Technologies Inc: JPMorgan raised the target price to $105 from $92 due to management's confidence in hitting 3-year targets. Westshore Terminals Investment Corp: RBC upgraded rating to Outperform from Sector Perform and raised the target price to C$30 from C$23 after Grassy Mountain Coal Project approval. Williams-Sonoma Inc: Barclays raised the target price to $166 from $131, citing reduced risks to achieving FY2025 EPS targets.
National Post
07-05-2025
- Business
- National Post
Primaris REIT Announces Distribution for May 2025
Article content TORONTO — Primaris Real Estate Investment Trust (' Primaris ' or the ' Trust ') (TSX: announced today that its Board of Trustees has declared a distribution of $0.0717 per unit for the month of May 2025, representing $0.86 per unit on an annualized basis. The distribution will be payable on June 16, 2025 to unitholders of record on May 31, 2025. Article content Article content Primaris is Canada's only enclosed shopping centre focused REIT, with ownership interests in leading enclosed shopping centres located in growing Canadian markets. The current portfolio totals 14.2 million square feet, valued at approximately $4.5 billion at Primaris' share. Economies of scale are achieved through its fully internal, vertically integrated, full-service national management platform. Primaris is very well-capitalized and is exceptionally well positioned to take advantage of market opportunities at an extraordinary moment in the evolution of the Canadian retail property landscape. Article content Article content Article content Article content Article content Contacts Article content Alex Avery Chief Executive Officer 416-642-7837 aavery@ Article content Rags Davloor Chief Financial Officer 416-645-3716 rdavloor@ Article content Article content
Globe and Mail
28-04-2025
- Business
- Globe and Mail
Market Analysis: April 28th, 2025
Global Markets Canadian Markets The Toronto Stock Exchange (TSX) traded lower on Monday as investors remained cautious ahead of Canada's upcoming general election, widely viewed as highly competitive. Political uncertainty weighed on investor sentiment. Adding to the pressure, a drop in global oil prices hurt Canada's energy-heavy index. Weakness in crude came amid renewed concerns around global demand and potential oversupply. However, the decline in oil was partially offset by gains in gold prices, which buoyed the precious metals mining sector—a traditional safe haven during times of geopolitical or economic stress. American Markets U.S. equity markets were mixed to start the week, as investors prepared for a packed calendar of economic releases and high-profile corporate earnings. Investors and traders are particularly focused on inflation indicators and Federal Reserve guidance, which will shape expectations for future interest rate moves. Uncertainty around U.S. trade policy developments under President Donald Trump also contributed to market jitters, especially in sectors exposed to global supply chains, as Nvidia's stock led the way down on competition fears from Huawei, which is a consequence of the export ban on Nvidia's chipsets. European Markets European stocks closed higher as investors looked forward to clarity on potential trade tariffs. Optimism over easing trade tensions helped support the broader market. Nonetheless, underlying concerns about the euro zone economy persisted. European Central Bank (ECB) policymakers issued fresh warnings about a deteriorating economic outlook, citing weak industrial output and fragile consumer sentiment as key risks going forward. Spain posted a positive economic data point, with retail sales rising 3.6% in March compared to the same month a year earlier. This marked a notable sign of consumer resilience in the euro zone's fourth-largest economy UK Markets UK stocks also moved higher, supported by strength in the healthcare and consumer sectors. However, data from the Confederation of British Industry (CBI) painted a mixed picture of the retail landscape. According to the CBI's latest survey, retail sales volumes fell again in April, but the pace of decline slowed significantly. The CBI's gauge of year-on-year sales rose to -8 in April—its highest since October—after plunging to -41 in March, which had been the worst reading since July 2024. Despite this relative improvement, retailers remain cautious, with many expecting business conditions to deteriorate further in May due to sluggish consumer confidence and broader economic headwinds. Corporate Stock News Alphabet IncRaymond James cut its target price on GOOGL to $185 from $205 due to uncertainty over AIO and AI cloud monetization. IncOppenheimer cut target price to $220 from $260 citing tariff concerns; third-party sellers reducing Prime Day participation to protect margins. Aritzia IncRBC cut target price to C$65 from C$73 due to uncertainty about tariffs' effects on margins and demand. Barrick Gold CorpSubcontractors at Mali complex laying off staff amid tax dispute with government; operations suspended since January after gold stock seizure. Biogen IncHSBC cut target price to $118 from $342 citing weak Alzheimer's sales and slowing Skyclarys performance. BlackRock IncISS urged investors to vote against executive compensation plan, citing unaddressed concerns over one-time awards. Boeing CoRiyadh Air offered to buy jets redirected from China due to trade conflict; Boeing expects strong alternative demand. Banc of California IncJPMorgan cut target to $15 from $16 after slight reduction in 2025 loan and deposit growth outlook. Domino's Pizza IncReported 0.5% drop in U.S. same-store sales in Q1 despite promotions; EPS beat estimates at $4.33. DoorDash Inc / DeliverooDeliveroo paused $133M share buyback after $3.6B takeover proposal from DoorDash at a 22.8% premium. Goldman Sachs Group IncAppointed Sushil Bathija and Vikram Chavali as new Asia ex-Japan M&A heads to expand deal coverage. Interactive Brokers Group IncFined over $540K in Hong Kong for unauthorized client securities lending due to system error; no client losses reported. Kenvue IncThird Point building a stake; joins other activist investors pushing for strategic changes including possible sale. Mandalay Resource Corp / Alkane ResourcesAlkane to acquire Mandalay in $357.8M all-share deal to create gold and antimony producer with 2025 output target of 160,000 ounces. Meta Platforms IncOrdered by Singapore to block posts from foreigners accused of attempting to influence national elections. Merck KGaA / SpringWorks Therapeutics IncMerck to acquire SpringWorks for $3.9B to expand cancer drug pipeline; deal priced at $47/share. Nike IncSued by NFT buyers alleging losses after abrupt shutdown of RTFKT digital asset business; class action filed in New York. Novo Nordisk A/SLaunched Wegovy in Thailand, its first Southeast Asian market, ahead of Eli Lilly's rival drug. Penn Entertainment IncAdding directors backed by HG Vora amid proxy fight; firm criticized for poor acquisitions and stock down 87% since 2021. Phillips 66Positive outlook with TD Cowen target of $114 as part of broader earnings week activity. RTX CorpJPMorgan reduced price target to $145 from $150 citing possible tariff headwinds despite strong earnings. Spirit AeroSystems Holding IncAirbus finalizing acquisition of key Spirit plants in U.S., Northern Ireland, and France to stabilize aerospace supply chain. Starbucks Corp81% of union delegates rejected new contract proposal citing lack of economic improvements like pay or healthcare changes. Unilever PlcDenied ousting Ben & Jerry's CEO over activism; seeks dismissal of lawsuit alleging efforts to dismantle brand's independent board. Winpak LtdCIBC raised target price to C$52 from C$50 based on improved balance sheet and free cash flow.
Globe and Mail
28-04-2025
- Business
- Globe and Mail
Market Analysis: April 22, 2025
Global Market Update Canadian Markets Canada's main stock index rose on Monday, buoyed by strong gains in commodity prices. The materials sector led the advance as gold briefly surged past the $3,500 per ounce mark, setting an all-time high amid rising global demand for safe-haven assets. Geopolitical uncertainty, inflationary pressures, and fears of a broader economic slowdown have prompted investors to pile into precious metals. Oil prices also inched higher, supported by short-covering activity, though concerns about the impact of trade tensions on global demand kept gains in check. American Markets In the United States, markets staged a modest rebound after a shaky start to the week. While all three major indices are in positive territory, the underlying mood was fragile. Market participants are awaiting further developments from President Donald Trump, particularly regarding his ongoing criticism of the Federal Reserve and speculation around potential leadership changes at the central bank. Uncertainty over U.S. monetary policy has introduced new volatility into the markets, as investors try to gauge how future decisions may impact inflation and interest rates. European Markets European markets traded in the green also, however, a sharp decline in shares of Novo Nordisk, the Danish pharmaceutical giant put pressure on investor mood. Consumer sentiment in the euro zone was further dented by economic data showing that consumer confidence fell to -16.7 in April, indicating rising pessimism among households. Concerns about sluggish growth and persistent inflation continue to challenge the region's economic outlook. In the UK, stocks moved higher, even as the International Monetary Fund (IMF) downgraded the UK's economic growth forecast. The revised outlook cited the impact of Trump's tariffs on global trade, which have rippled across international markets and disrupted supply chains. While the IMF's projection raised concerns, some investors viewed the economic warning as a potential catalyst for central banks to maintain accommodative policies, which lent support to UK equities. Corporate Stock News Advanced Micro Devices Inc: Bernstein cuts AMD's target price to $95 from $125, reflecting AI headwinds amid China export restrictions. Inc: Jefferies cuts target price to $240 from $250, citing revenue and margin pressures from tariffs, particularly on Chinese imports. Inc & Walmart Inc: The U.S. administration intends to pressure India for full access to its $125 billion e-commerce market for Amazon and Walmart, to level the playing field against domestic firms like Reliance. Barrick Gold Corp & NovaGold Resources Inc: Barrick Gold will exit the Donlin Gold Project in Alaska by selling its 50% stake to John Paulson and NovaGold Resources for up to $1.1 billion. Boeing Co: Technology-focused buyout firm is in advanced talks to acquire Boeing's Jeppesen navigation unit, valued at over $8 billion. Chevron Corp: Chevron is conducting minor planned maintenance at its Wheatstone natural gas facility in Australia, temporarily reducing production. Comerica Inc: JPMorgan cuts rating to underweight from neutral and target price to $52 from $64, warning about the company's expensive shares and challenging 2025 growth outlook. Coreweave Inc: Goldman Sachs initiates coverage with a neutral rating and a target price of $54, noting the company's undemanding valuation and potential upside. Danaher Corp: The medical equipment maker beat first-quarter profit estimates but expects additional tariff-related costs of 'several hundred millions of dollars' in 2025. Elevance Health Inc: The health insurer's first-quarter profit exceeded expectations, and it reiterated its full-year forecast of $34.15 to $34.85 per share. General Electric Co: GE Aerospace beat first-quarter profit estimates, and the company reaffirmed its earnings forecast for 2025 despite tariff-related concerns. Halliburton Co: Halliburton posted lower first-quarter profits due to a slowdown in North American drilling activity, sending shares lower. Intel Corp: Bernstein cuts target price to $21 from $25, revising down its growth and EPS forecast for 2025 over tariff dynamics. Kimberly-Clark Corp: The company slashed its annual profit forecast, citing U.S. tariffs pushing up supply-chain costs and missed sales estimates for the quarter. KKR & Co Inc: KKR made a cash offer for Biotage, valuing the Swedish biotechnology firm at 11.6 billion Swedish crowns, a 60.1% premium. Nomura Holdings Inc: Nomura is acquiring Macquarie Group's U.S. and European public asset management businesses for $1.8 billion, marking its largest acquisition. Regeneron Pharmaceuticals Inc: Regeneron entered a deal valued at more than $3 billion with Fujifilm Diosynth to expand its U.S. manufacturing capacity. Tesla Inc: Investors are awaiting updates on Tesla's plans for a cheaper car and robotaxi service, along with updates on CEO Elon Musk's involvement in the Trump administration. TotalEnergies SE: TotalEnergies will shut its oldest steam cracker in Antwerp by 2027 due to weak demand and high input costs in Europe. Toyota Motor Corp: Toyota's Hino Motors unit and Mitsubishi Fuso Truck and Bus are moving to finalize a merger agreement, expected to be completed in May 2025. UnitedHealth Group Inc: UnitedHealth disclosed spending nearly $1.7 million on executive security in 2024, following the shooting of a senior executive, and reported CEO Andrew Witty's compensation at $26.3 million. Verizon Communication Inc: Verizon lost more wireless subscribers than expected in the first quarter, as it raised prices while facing increased competition. 3M Co: 3M, the industrial conglomerate cut its 2025 profit forecast due to the impact of escalating tariff tensions, sending shares down in premarket trading.
Globe and Mail
16-04-2025
- Business
- Globe and Mail
Market Analysis: April 16th, 2025
Global Market Update Canadian Markets Canada's TSX moved lower, though losses were cushioned by strength in the commodity sector. Rising gold and oil prices provided key support, as investors sought safe havens amid ongoing global uncertainty and rising geopolitical tensions. The Bank of Canada held its benchmark interest rate steady at 2.75%, in a widely expected move. Policymakers emphasized caution, noting that inflation remains a key concern and that premature rate cuts could re-ignite price pressures. The Bank of Canada highlighted that ongoing uncertainty surrounding U.S. tariffs and trade policy has made it impossible to provide reliable economic forecasts, signaling a more reactive stance moving forward. American Markets In the U.S., equity markets declined across the board. Trade tensions remained front and center, with investors increasingly concerned over the long-term economic impact of tariffs. The Federal Reserve Chair, Jerome Powell warned of the immediate 'challenging' impacts arising from the uncertainty around the Federal government's trade policy. Technology stocks came under pressure, led by Nvidia, which dropped sharply in intraday trading after the company disclosed significant charges linked to new U.S. export restrictions on advanced semiconductors to China. The news weighed on the broader tech sector and added to concerns about global supply chain disruption. European Markets European markets ended mixed. The Dutch chipmaker ASML warned that extended U.S. tariffs were creating significant uncertainty for its business outlook in 2025 and 2026, dragging down the European tech sector. Broader market sentiment in the region was cautious, though energy stocks helped limit declines. In the UK, equities managed modest gains, driven by a rebound in the energy and mining sector. Falling inflationary data also supported market sentiment, as the UK's inflation rate dropped to 2.6% — closer to the Bank of England's 2% target. This has increased speculation that the central bank may begin cutting interest rates in the coming months, potentially giving a boost to domestic demand and corporate margins. Albeit it is thought that the drop in inflation might only be temporary. Corporate Stock News Alphabet (Google): Facing a UK class action lawsuit seeking up to $6.6B, alleging abuse of dominance in online search by pre-installing apps and paying Apple for default status. Applied Materials, KLA, Lam Research, Onto: New U.S. tariffs could cost U.S. semiconductor equipment makers over $1B annually due to lost overseas sales and compliance costs. ASML Holding NV: Warned tariffs are creating uncertainty for 2025–26 outlook; Q1 net bookings missed estimates, but maintained annual guidance. Bank of America: Piper Sandler cut target price to $42 from $45 due to lower bank equity valuations. Citigroup: RBC cut target price to $78 from $85 citing profitability concerns and economic outlook. Groupe Dynamite Inc: Barclays cut target price to C$14 from C$19 due to tariff and geopolitical uncertainty. Harley-Davidson: H Partners plans to remove 3 board members including CEO, citing sales decline and poor stock performance. Interpublic Group & Omnicom Group: Omnicom missed Q1 revenue estimates; deal with Interpublic expected to drive growth and synergies in H2. J.B. Hunt: Q1 profit dropped 7.6% due to trucking and brokerage weakness; tariffs and oversupply worsen the 'freight recession.' KKR: Acquiring German IT firm Datagroup for $508M in all-cash deal; Datagroup to be delisted; founder to retain joint control. Monster Beverage: Appeals court upheld $311M win against Bang Energy for false advertising about its drink contents and benefits. Nvidia: NVDA announced $5.5B in charges due to new U.S. chip export restrictions to China; reportedly didn't inform customers in advance. Piper Sandler cut target price to $150 from $175. Pfizer & Novo Nordisk: Included in Trump's executive order pushing Medicare drug price negotiation reforms; aims to lower healthcare costs. Tesla: Tariffs forced suspension of Cybercab and Semi component shipments from China, risking delays in planned production. United Airlines: Issued cautious profit outlook due to potential recession; bookings remain stable; warns economic conditions are unpredictable. Well Health Technologies: CIBC cut target price to C$5 from C$7 due to market conditions and an investigation into its subsidiary. Wipro: Posted weaker-than-expected Q4 revenue; forecasted 1.5–3.5% QoQ decline due to macroeconomic caution. Xylem: Stifel Nicolaus cut teh target price to $140 from $150, citing modest tariff-related uncertainty.
