Market Analysis & Stock News: January 24th, 2025
Global Market Update
Canadian Markets
Canada’s main stock index, the TSX rose for the ninth consecutive session, marking a notable streak of gains as investors exercised caution amid lingering uncertainty surrounding U.S. President Donald Trump’s latest tariff threats. The TSX’s increase was mainly driven by a strong performance in tech stocks.
The Canadian federal government approved a $1 billion loan for Canada Post to address its ongoing financial challenges.
CIBC highlighted that Canada’s population growth crisis, while presenting short-term challenges, could lead to long-term economic benefits.
JPMorgan reported “massive” demand for hedges on the Canadian dollar due to heightened tariff-related risks.
American Markets
American stocks dropped following the S&P 500’s record high close in the previous session—the second time in just over a month.
Nvidia Corp. lead the Nasdaq downward as its shares declined following Meta Platforms’ announcement of a major AI investment plan. Meta CEO Mark Zuckerberg declared 2025 a “defining year for AI,” unveiling plans for the Llama 4 AI model, a 2GW+ data center hosting over 1.3 million GPUs, and $60–65 billion in capital expenditures focused on AI and infrastructure development.
Intuitive Surgical (ISRG) shares dropped on Friday after issuing conservative 2025 guidance, despite strong quarterly results. The company reported Q4 earnings of $2.21 per share on $2.41 billion in revenue, exceeding forecasts of $1.79 per share on $2.25 billion in revenue.
European Markets
European shares saw mixed performance, with luxury stocks buoyed by Burberry’s robust sales figures. Worries about tariffs eased somewhat which pushed investors to the sidelines.
Investors responded to regional PMI data, which showed a small improvement in manufacturing activity in some regions.
In the UK, stocks fell as tepid economic growth highlighted ongoing challenges. The British economy showed a modest improvement, with the UK S&P Composite Purchasing Managers’ Index (PMI) “flash” reading edging up to 50.9 in January, a three-month high, compared to 50.4 in December. This slightly surpassed economists’ expectations of 50.0, the threshold dividing growth from contraction. However, the survey also revealed underlying weaknesses, such as contracting employment and declining business optimism. Price pressures increased, further complicating the Bank of England’s efforts to navigate economic challenges. The PMI report aligned with broader indicators of lackluster growth and a weakening labor market..
Following the PMI release, British government bond prices fell as investors focused on the survey’s signals of rising price pressures. Sterling gained slightly against the U.S. dollar, reflecting a nuanced market response.
Corporate Stock News
Alphabet Inc- Google pledged to tackle fake reviews by sanctioning UK businesses and individuals involved in manipulating star ratings. Britain’s CMA (Competition and Markets Authority) stated that Google would also add warnings on profiles tied to fake reviews.
- Stifel raised the target price to C$53 from C$51, citing anticipated growth in Q2 2025 due to infrastructure renewal, AI, and regulatory changes in the U.S. oil and gas sector.
- TD Cowen increased the target price to C$7 from C$5.50, highlighting operational improvements and expected continuation of positive momentum in 2025.
- Its energy-focused unit acquired Potomac Energy Center for approximately $1 billion, leveraging investor interest in power plants near data centers.
- Warned of a Q4 2024 loss of about $4 billion, nearly triple analysts’ expectations. Issues cited include supply chain delays, stricter regulations, and worker strikes.
- Began production expansion at Tengiz oilfield, expected to hit full capacity (260,000 barrels/day) by June 2025, contributing 1% to global crude supply.
- Shareholders voted overwhelmingly (98%) against a proposal questioning the risks of maintaining diversity and inclusion initiatives.
- Reported Q4 revenue of $3.54 billion, in line with estimates. Coal revenue dropped 20%, but intermodal shipping volume rose by 4%.
- Jefferies lowered the target price for FCX to $40 from $48, citing regulatory challenges in Indonesia, despite strong performance in the Americas.
- Wolfe Research increased the target price to $230 from $210, reflecting strong Q4 results and optimistic 2025 guidance.
- Surpassed Q4 profit expectations with adjusted EPS of $2.21 (vs. $1.79 expected). Demand for its da Vinci surgical robots surged, with 18% growth in procedures.
- CEO Jamie Dimon’s pay rose 8.3% to $39 million following record profits, signaling renewed dealmaking activity.
- Exploring strategic options, including a potential sale, amid a cash crunch linked to high production costs for its fuel-cell electric trucks.
- Early-stage trials showed a new obesity drug delivered 22% weight loss in 36 weeks, boosting investor confidence.
- Cyclone Sean disrupted operations in Western Australia, with key infrastructure repairs estimated to last 3–4 weeks, though shipment forecasts for 2025 remain intact.
- Plans to launch hands-free driver assistance in 2025 and “eyes-off” systems in 2026, emphasizing customer convenience and partnerships with other automakers.
- Jefferies raised the target price to $145 from $125, pointing to growth-focused projects with funding already secured.
- Unveiled a refreshed Model Y, available for limited sale in the U.S., Canada, and Europe. Deliveries to start in March 2025, alongside a cheaper model launch later in the year.
- Q1 profit forecasts fell below analysts’ expectations due to inventory challenges in automotive and industrial sectors. The market in China showed modest growth.
- TD Anti-money laundering chief Herbert Mazariegos stepped down amid regulatory scrutiny. Jacqueline Sanjuas will succeed him to lead compliance efforts.
- Piper Sandler increased the target price to $310 from $259, emphasizing sustainable margins in commercial lines.
- Jefferies raised the target price to $255 from $250 after better-than-expected Q4 earnings and a strong 2025 outlook.
- Appointed Tim Noel as head of its health insurance unit, following the sudden passing of former CEO Brian Thompson. The company is under pressure due to rising medical costs.
- Initiated a strategic review of its nickel operations in Thompson, Canada, which could lead to asset sales, aiming to optimize its portfolio.
- Forecasted annual profit and free cash flow below expectations. Despite these concerns, Q4 wireless subscriber additions exceeded projections.
- The LNG exporter debuted on the NYSE after cutting its IPO valuation by 40% to $60.5 billion, raising $1.75 billion in its public offering.
- The company plans increased U.S. investments and European cost reductions to achieve profitability and market share goals.
