AIMSTAR FINANCIAL PREVIEW – Feb 26, 2024

Your Weekly Financial Market Recap and Earnings Preview.

Vikki Zhao

PUBLISHED Mon, Feb 26, 2024, 14:05 PM EST. 10 min read.

Business News Preview

Focus on Canada

Cargojet results (TSX:CJT)

Cargojet Inc. will report its fourth-quarter results and hold a conference call with investors before markets open on Monday. The report comes after a slide in consumer spending squeezed the air cargo company’s bottom line in its third quarter.

Bank earnings

Canada’s big banks will report their first-quarter results this week. Scotiabank and Bank of Montreal will report on Tuesday followed by National Bank of Canada and Royal Bank of Canada on Wednesday. CIBC, TD Bank and Laurentian Bank are expected to release their results on Thursday.

Companies in this News: (TSX:BNS, TSX:BMO, TSX:NA, TSX:RY, TSX:CM, TSX:TD, TSX:LB)

Spin Master results (TSX:TOY)

Toy company Spin Master is expected to report its fourth-quarter results after the close of markets on Wednesday. In its preliminary results released earlier this month, the company says revenue for its fourth quarter totalled US$502.6 million, up from US$465.8 million a year earlier.

Canadian GDP report

Statistics Canada will release on Thursday its figures for gross domestic product for December and the fourth quarter of 2023. A preliminary estimate suggested real gross domestic product rose 1.2 per cent on an annualized basis in the fourth quarter, following a decline of a similar magnitude in the third quarter.

Canadian Natural results (TSX:CNQ)

Canadian Natural Resources Ltd. will issue its fourth-quarter and full-year results before markets on Thursday. The company is a major contracted shipper on the Trans Mountain pipeline expansion. Construction challenges in B.C. have delayed the startup of the pipeline until sometime in the second quarter of this year.

This report by The Canadian Press was first published Feb. 25, 2024.

Focus on International

U.S. to Release PCE Data

The United States is set to unveil January Personal Consumption Expenditures (PCE) price data on Thursday (the 29th), which is among the Federal Reserve’s most closely watched inflation indicators. The core PCE price index is expected to dip from 2.9% to 2.8% year-on-year, while the monthly rate is forecasted to rise from 0.2% to 0.4%. Other economic data scheduled for release this week includes durable goods orders, ISM Manufacturing PMI, and housing sales data.

Retail Stocks Earnings Including Macy’s

The retail earnings season is nearing its end, with Lowe’s (NYSE: LOW), Macy’s (NYSE: M), TJX (NYSE: TJX), and Best Buy (NYSE: BBY) among those set to report earnings this week. Investors are closely monitoring whether the economy is heading for a so-called “soft landing” and whether the Federal Reserve will manage inflation without impacting economic growth.

Eurozone to Release CPI

The Eurozone is set to publish CPI data on Friday (March 1st), marking the final inflation data before the European Central Bank’s policy meeting. CPI is expected to drop from 2.9% in December to 2.8% in January, moving closer to the European Central Bank’s target of 2%.

China to Release PMI

China will release official manufacturing PMI data for February on Friday (the 26th). Manufacturing PMI is expected to remain below the boom-bust line, slightly decreasing from 49.2 in January to 49.1, while non-manufacturing PMI is expected to rise slightly from 50.7 to 50.8. Recently, China has implemented various measures to support its economy, including the largest interest rate cut in history, linked to the 5-year Loan Prime Rate (LPR) associated with housing loans.

Oil Prices Decline

Oil prices continue to decline, marking a week-long downward trend. U.S. Federal Reserve policymakers suggest that a rate cut may be delayed for at least two more months. Concerns about rising inflation have tempered oil price increases, although worries about supply disruptions in the Middle East may counteract further declines.

This report by Scott Kanowsky was first published Feb. 26, 2024.

Stock Market Update

U.S. Stock Futures Hold Steady:

  • During pre-market trading on Monday, February 26, 2024, U.S. equity futures exhibited relative stability, devoid of any discernible directional bias. Despite achieving record highs last Friday, investor focus has now shifted towards the forthcoming release of the Personal Consumption Expenditures (PCE) inflation gauge.

Pre-Market Stock Dynamics:

  • Alcoa (NYSE: AA): Proffered a $2.2 billion acquisition proposition to Alumina (OTC: AWCMY), an Australian aluminum manufacturer, precipitating a 3.3% decline in its stock.
  • Ford Motor (NYSE: F): Temporarily suspended deliveries of its 2024 F-150 Lightning model due to an ongoing inquiry into quality concerns, resulting in a marginal 0.1% downturn in its share price.
  • Berkshire Hathaway (NYSE: BRKa): Achieved consecutive record-high annual profits, eliciting a 2.1% upturn in its stock value.
  • Intuitive Machines (NASDAQ: LUNR): Witnessed a precipitous 25% plummet in its stock valuation following an incident where its lunar craft overturned shortly after lunar surface landing.
  • Moderna (NASDAQ: MRNA): Registered a 1.6% decline in its share price subsequent to a rating downgrade by HSBC, reflecting cautious sentiment regarding the overall market potential of Moderna’s mRNA vaccines.
  • Domino’s Pizza (NYSE: DPZ): Unveiled plans for a dividend hike and reiterated its commitment to share buybacks, propelling its stock to surge by 7%.
  • Freshpet (NASDAQ: FRPT): Exceeded analyst expectations with robust fourth-quarter revenue and earnings, resulting in a notable 12% surge in its stock price.
  • PPG Industries (NYSE: PPG): Initiated a strategic reassessment of its architectural coatings segment in the U.S. and Canada, prompting a modest 0.5% increase in its stock value.
  • Taiwan Semiconductor (NYSE: TSM): Despite a reduction in holdings by the ARKQ fund, witnessed a commendable 0.7% uptick in its stock price.

Chinese Stock Market:

  • KraneShares CSI China Internet ETF (NYSE: KWEB) dropped by 0.5%.
  • Li Auto (NASDAQ: LI) (HK: 2015): Reported strong Q4 financial results, leading to a 10% surge in its stock price.
  • NIO (NYSE: NIO) (HK: 9866) and XPeng (NYSE: XPEV) (HK: 9868): Each experienced increases of 2.4% and 3.5%, respectively.

This report by Jason Liu was first published Feb. 26, 2024.

Weekly Earning Releases

EARNINGS RELEASES FOR THE WEEK

The eagerly awaited earnings releases for the week commencing February 26, 2024, include reports from Marathon Digital (#MAR), Snowflake (#SNOW), Salesforce (#CRM), AMC Entertainment (#AMC), Unity (#U), Zscaler (#ZS), Devon Energy (#DVN), C3.ai (#AI), SoundHound AI (#SOUN), and Paramount Global (#PARA).

Highest Earnings Volatility for the Week

Earnings before the market open on Monday, February 26, 2024, will include reports from #LI, #DPZ, #BRK.B (previously announced on Saturday morning), #KRYS, #AMR, #FIS, #ITRI, #FRPT, #ELAN, #PEG, #PPC, #SGRY, #KOS, #BCRX, #CCO, #ENLT, #PLTK, and #CRGO.

This report by The EarningsWhisper was first published on Feb. 26, 2024.

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