In the markets: ATD deal moves ahead with negotiations
Plus: BRP posts decline, but beats estimates; Markets await jobs data
Canada Stock Digest - Sep. 6, 2024
Market Overview
TSX Composite Index closed at 22,988.28 CAD, down by 0.23%
TSX Venture Index closed at 550.28 CAD, down by 0.39%
NASDAQ Composite closed at 17,127.66 USD, up by 0.25%
Dow Jones Industrial Average (DJI) closed at 40,755.75 points, down by 0.54%
S&P 500 closed at 5,503.41 USD down by 0.30%
Stock & Market News
Global markets down on US data Global markets declined ahead of key U.S. job data that could influence the Federal Reserve's upcoming interest rate decision, while Canadian company BRP Inc. reported a decrease in profit and revenue amid a challenging retail environment.[Globe Investor]
Analyst upgrades and downgrades Analysts are optimistic about Alimentation Couche-Tard's potential acquisition of Seven & i Holdings despite the company's lackluster first-quarter results, viewing the deal as strategically beneficial but acknowledging the uncertainties surrounding financing and execution.[Globe Investor]
ATD negotiations Seven & i Holdings Co. has indicated a willingness to negotiate after rejecting Alimentation Couche-Tard Inc.’s ¥5.55 trillion ($38.7 billion) takeover proposal, signaling a shift in Japan's corporate landscape towards greater openness to mergers and acquisitions amidst increasing regulatory and investor pressure.[BNN]
BRP decline BRP Inc. reported a significant decline in its second-quarter profit and revenue compared to the previous year, earning $7.2 million, down from $338.7 million, and announced a reduction in its annual revenue guidance from $8.6-$8.9 billion to $7.8-$8.0 billion amid a challenging retail environment.[BNN]
Economic News
World News & Politics
Father arrested after US school shooting The father of a 14-year-old boy accused of killing four people in a Georgia school shooting has been charged with murder and involuntary manslaughter for allegedly allowing his son to possess a weapon used in the attack.[BBC]
Hunter Biden pleads guilty Hunter Biden pleaded guilty to federal tax charges in a surprise move just before his trial was set to begin, potentially facing up to 17 years in prison, while his attorney emphasized the decision was made to protect his family from further public scrutiny.[CNN]
New French PM Michel Barnier has been appointed as France's new Prime Minister, succeeding Gabriel Attal, amid a political stalemate following recent snap elections, and he aims to unify the divided National Assembly while addressing the country's pressing financial and environmental challenges.[BBC]
Israeli strike kills 5 An Israeli air strike in Tubas, West Bank, has killed five Palestinians, including members of an armed group, amid ongoing military operations that have left at least 36 Palestinians dead in recent days.[BBC]
Economic Events
8:30am Unemployment rate/Employment change/Average hourly wages YoY
Tuesday Bank of Canada speech
Recent Earnings
TSX
Enghouse Systems
Revenue reported at 84.66M, estimated at 129.7M
EPS reported at 0.37, estimated at 0.36
BRP
Revenue reported at 1.84MB, estimated at 1.88B
EPS reported at 0.61, estimated at 0.35
US Markets
Broadcom
Revenue reported at 13.07B, estimated at 12.98B
EPS reported at 1.24, estimated at 1.22
Docusign
Revenue reported at 736.03M, estimated at 727.20M
EPS reported at 0.97, estimated at 0.81
Fun Fact
Investment Tip
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.