In the markets: Steel Stocks Surge As Trump Announces 25% Tariffs
Plus: TD divests Charles Schwab stake; Brookfield invests in France AI infrastructure; McDonald's jumps on earnings beat.
Canada Stock Digest - Feb. 10, 2025
Market Overview
S&P/TSX Composite Index: Closed at 25,443.00 CAD, down 0.5%.
S&P/TSX Venture Composite Index: Closed at 639.28 CAD.
NASDAQ Composite: Closed at 19,523.40 USD, down 0.95%.
Dow Jones Industrial Average (DJIA): Closed at 44,303.40 USD, down 0.99%.
S&P 500: Closed at 6,025.99 USD, down 0.95%.
Stock & Market News
TSX Opens Higher Amid Rising Metal Mining Shares and TD Bank's Announcement: Canada's main stock index opened higher, buoyed by gains in metal mining shares and a 1.7% rise in TD Bank's stock following its plan to divest its stake in Charles Schwab. Reuters
Stock Futures Dip Ahead of Economic Data and Tariff Threats: U.S. stock futures edged lower as investors awaited key economic data and assessed the potential impact of new tariffs proposed by the Trump administration. CNBC
European Markets Update: European markets experienced mixed performances as investors reacted to corporate earnings reports and economic data. CNBC
Asia Markets Mostly Decline Amid Economic Concerns: Asian markets mostly fell on Monday as investors grappled with economic uncertainties and potential impacts of new tariffs. CNBC
Analyst Upgrades and Downgrades: Desjardins lowered Saputo's target to $31, citing trade uncertainties, while CIBC cut it to $29. Canaccord slashed Canopy Growth's target to $1.50, warning of dilution risks. CIBC upgraded Verticalscope to "outperformer," raising its target to $17. Canaccord raised Canadian Tire's target to $160, noting improving consumer sentiment. TD lifted IGM Financial’s target to $56 after positive Q4 results. Other notable moves: ATB cut Canopy to $3.20, BMO trimmed Couche-Tard to $85, and Raymond James raised Amazon to $275. Globe
TD Bank to Divest Charles Schwab Stake: TD Bank announced plans to sell its entire 10.1% stake in Charles Schwab, valued at approximately $15.4 billion, as part of a strategic review; proceeds will be used for share buybacks and business growth initiatives. Reuters
Brookfield's €20 Billion Investment in France's AI Infrastructure: Brookfield Asset Management plans to invest €20 billion over the next five years to develop data centers and AI infrastructure in France, aiming to strengthen the country's position in the global AI industry. BNN Bloomberg
Hyatt to Acquire Playa Hotels & Resorts for $2.6 Billion: Hyatt Hotels announced a $2.6 billion acquisition of Playa Hotels & Resorts, expanding its presence in the all-inclusive resort sector and aligning with its asset-light strategy through planned property sales and long-term management agreements. Investor's Business Daily
Air Transat Eliminates Free Carry-On Baggage for Low-Fare Tickets: Air Transat has removed the allowance for free carry-on baggage on its lowest fare tickets, a move that may affect travelers seeking budget-friendly options. The Canadian Press
Amazon to Close Quebec Warehouses, Resulting in 1,700 Job Losses: Amazon announced plans to close all seven of its warehouses in Quebec within the next two months, leading to the elimination of 1,700 full-time jobs and 250 temporary positions; the decision has drawn criticism from union representatives. Associated Press
Over $1 Million Worth of Olive Oil Stolen in Montreal: A transport company in Montreal reported the theft of olive oil valued at over $1 million, highlighting concerns about cargo security in the region. The Canadian Press
McDonald's Q4 2024 Earnings Beat Expectations: McDonald's reported fourth-quarter earnings for 2024 that surpassed analysts' expectations, driven by strong global sales growth. CNBC
Steel and Aluminum Stocks Surge on Tariff News: Shares of steel and aluminum companies rose sharply following President Trump's announcement of impending tariffs on imports. CNBC
France Announces Major AI Investment: French President Emmanuel Macron unveiled a significant investment in artificial intelligence, positioning France as a leader in the field. CNBC
BP Shares Rise Amid Elliott Management Stake Reports: BP's stock price increased following reports that activist investor Elliott Management has acquired a stake in the British oil company. CNBC
Economic News
Trump's Steel and Aluminum Tariffs: President Trump announced plans to impose tariffs on steel and aluminum imports, aiming to protect domestic industries but raising concerns about potential trade wars. CNN
World News & Politics
Bryan Adams Cancels Australia Show Due to 'Fatberg': Singer Bryan Adams canceled his concert in Australia after a massive 'fatberg'—a blockage of congealed fat and waste—caused sewage issues at the venue. CNN
Kendrick Lamar's Super Bowl Performance: Kendrick Lamar's Super Bowl halftime show received acclaim for its powerful commentary on social issues and innovative musical arrangements. CNN
China's Marriage Registrations Hit Record Low: China reported a record low number of marriage registrations in 2024, reflecting changing societal attitudes and economic pressures. CNN
Economic Events
Monday Bank of Canada Market Participants Survey
Wednesday Bank of Canada Summary of Deliberations
Friday Senior Loan Officer Survey
Recent Earnings
TSX
There are no earnings to report today
US Markets
MCDONALD'S CORPORATION (MCD)
Revenue reported at 6.39B USD, estimated at 6.45B USD
EPS reported at 2.83 USD, estimated at 2.84 USDROCKWELL AUTOMATION, INC. (ROK)
Revenue reported at 1.88B USD, estimated at 1.88B USD
EPS reported at 1.83 USD, estimated at 1.58 USDON SEMICONDUCTOR CORPORATION (ON)
Revenue reported at 1.72B USD, estimated at 1.76B USD
EPS reported at 0.95 USD, estimated at 0.97 USDMONDAY.COM LTD. (MNDY)
Revenue reported at 267.98M USD, estimated at 261.41M USD
EPS reported at 1.08 USD, estimated at 0.79 USD
Fun Fact
🧠 Did you know that your brain burns an incredible 400 to 500 calories a day just by functioning? Despite making up only about 2% of your total body weight, the brain is one of the most energy-hungry organs, using around 20% of your daily calorie intake. This energy goes toward essential functions like processing thoughts, regulating emotions, controlling movement, and keeping your body’s systems running smoothly. Even when you're resting or sleeping, your brain remains highly active, maintaining neural connections and processing information. So while thinking hard won’t replace a workout, it’s fascinating to know that your brain is constantly burning fuel to keep you going!
Investment Tip
💰Investing in companies with a history of opportunistic buybacks is like backing a smart shopper who only buys on sale. When businesses repurchase their own shares at undervalued prices, it boosts earnings per share and signals confidence in future growth. But the real trick is finding companies that buy back shares strategically—not just to prop up stock prices. It’s like having a CEO who knows when to splurge and when to save—disciplined, efficient, and maximizing long-term value.
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.