Market Overview
TSX Composite Index closed at 23,259.96 CAD, down by 0.38%
TSX Venture Index closed at 573.03 CAD, down by 0.78%
NASDAQ Composite closed at 17,754.82 USD, up by 0.16%
Dow Jones Industrial Average (DJI) closed at 41,250.50 points, up by 0.02%
S&P 500 closed at 5,625.80 USD up by 0.16%
Stock & Market News
Global markets wait on Nvidia US equity futures dipped as investors await Nvidia's key earnings report, with expectations of over 70% revenue growth; any disappointment could significantly impact markets due to Nvidia's substantial influence on US indexes.[Bloomberg/Globe Investor/Reuters]
Analyst upgrades and downgrades Two analysts downgraded Bank of Montreal after its third-quarter earnings miss, citing concerns about its credit outlook and uncertain timing for recovery, leading to a drop in the stock price.[Globe Investor]
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RBC beats estimates Royal Bank of Canada surpassed profit estimates for the fiscal third quarter, driven by strong performance in its domestic banking division and lower-than-expected provisions for potential bad loans.[BNN]
National Bank rise National Bank of Canada reported a third-quarter profit of $1.03 billion, up from $830 million a year ago, driven by strong performance across its operations and higher revenue, while its adjusted earnings per share surpassed analyst expectations.[BNN]
BYD beat Chinese electric vehicle maker BYD reported a 32.8% increase in net profit for the second quarter, despite aggressive discounts on its best-selling models, as it solidified its market leadership and expanded internationally.[Reuters]
Abercrombie & Fitch sales Abercrombie & Fitch raised its annual sales forecast after reporting second-quarter revenue above expectations, driven by strong demand for new styles, though its shares dropped nearly 10% in premarket trading due to high investor expectations.[Reuters]
Buffett sells more BoA Warren Buffett's Berkshire Hathaway sold an additional US$982 million of Bank of America shares, reducing its stake in the bank by nearly 13% since mid-July and generating US$5.4 billion in total proceeds.[Bloomberg]
GSK shares up on court decision GSK Plc shares rose after the Delaware Supreme Court agreed to review a lower court's decision allowing evidence that claims the heartburn drug Zantac causes cancer to be heard in upcoming trials.[Bloomberg]
TikTok “blackout challenge” ruling A U.S. appeals court has revived a lawsuit against TikTok by the mother of a 10-year-old girl who died after attempting the "blackout challenge," ruling that TikTok's algorithm recommendations are not protected by Section 230 of the Communications Decency Act.[Reuters]
Apple job cuts Apple Inc. cut around 100 jobs in its digital services group as part of a shift in priorities within the division.[Bloomberg]
AT&T outage AT&T experienced a software-related outage on Tuesday that affected some customers' ability to connect to the wireless network and access 911 services, but the issue has since been resolved.[CNN]
Read more from Amy at Motley Fool
Economic News
Jasper wildfire cots $880M The wildfire in Jasper, Alberta, caused more than $880 million in insured damage, making it the second most expensive wildfire in the province's history.[BNN]
EU China data deal The European Union and China have initiated a new mechanism to streamline cross-border data flows, aiming to facilitate international transfers of non-personal data for European businesses while ensuring compliance with Chinese data laws.[Reuters]
World News & Politics
Nine killed in Israeli strike At least nine Palestinians were killed in a major Israeli military operation in the West Bank, targeting armed groups in cities including Jenin and Tulkarm, amid escalating violence in the region.[BBC]
Revised Trump indictment Special counsel Jack Smith filed a revised indictment against Donald Trump in the January 6 election subversion case, removing certain allegations following a Supreme Court ruling but maintaining all charges, focusing on Trump's efforts to pressure state officials and submit false electors.[CNN]
Telegram CEO decision French prosecutors are expected to either charge or release Telegram CEO Pavel Durov, who was detained as part of an investigation into alleged criminal activities on the platform, including child sexual abuse material and drug trafficking.[CP]
Economic Events
Thursday Current Account/Average Weekly Earnings YoY
Friday GDP Growth
Recent Earnings
TSX
Royal Bank of Canada
Revenue reported at 14.63B, estimated at 14.4B
EPS reported at 3.26, estimated at 2.96
National Bank of Canada
Revenue reported at 2.98B, estimated at 2.86B
EPS reported at 2.68, estimated at 2.47
US Markets
Nordstrom
Revenue reported at 3.89B
EPS reported at 0.96
Foot Locker
Revenue reported at 1.9B
EPS reported at 0.05
Abercrombie & Fitch
Revenue reported at 1.13B
EPS reported at 2.50
Bath & Body Works
Revenue reported at 1.53B
EPS reported at 0.37
Kohl’s
Revenue reported at 3.52B
EPS reported at 0.59
Fun Fact
📸Did you know that the first ever photograph taken of a person was actually an accident? In 1838, Louis Daguerre captured a street scene of the Boulevard du Temple in Paris. Due to the long exposure time required for the early daguerreotype process, moving objects like people and carriages didn’t appear in the image.
👞However, one man who was getting his shoes shined stayed still long enough to be captured, making him the first person ever photographed!
Investment Tip
📈Return on Equity (ROE) is a key metric for evaluating a company's profitability and efficiency in generating profits from shareholders' equity. A high ROE indicates that a company is effectively using its equity base to generate earnings, making it an attractive investment.
📊However, it's important to compare ROE within the same industry, as different sectors have varying benchmarks. Additionally, consider the company's debt levels, as excessive debt can artificially inflate ROE. Look for companies with consistently high and sustainable ROE, supported by strong fundamentals, as they often indicate a well-managed business with a solid competitive advantage.
Have a great trading day! 😊
Disclaimer: The information provided in this newsletter is for educational purposes only and does not constitute financial advice. Always consult with a financial advisor before making investment decisions.
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