January 20th, 2015
Daily Market Commentary
- Manufacturing Shipments in Canada were reportedly down 1.4% in month-over-month terms, below estimates of -0.7%.
- A survey of economic sentiment in the Eurozone was reported at 45.2., above estimates of 37.6.
- A survey of economic sentiment in Germany was reported at 48.4, above estimates of 40.
- Gold advanced to the highest in almost five months as precious metals climbed on demand for a haven amid concerns global economic growth is slowing.
- Copper gave up earlier gains after economic data from China, the world’s largest base-metals user, beat estimates while showing the weakest expansion in 24 years.
- Oil rose in London as investors speculated the European Central Bank will announce a stimulus program, potentially boosting demand.
- Samsung Electronics Co. denied interest in acquiring BlackBerry Ltd., saying instead it was holding talks to use the Canadian smartphone maker’s technology in Samsung devices.
- Financier Easyhome said it has agreed to buy up to 47 retail locations from the Cash Store Financial Services Inc., which last year filed for creditor protection. Easyhome said new-store openings related to the purchase are expected to reduce 2015 earnings by about $0.10 a share, but increase 2016 and 2017 earnings by about $0.15 and $0.25, respectively.
- Lightstream Resources announced that while year-end 2014 exit rates exceeded guidance, in light of further declines in oil prices and to preserve financial flexibility, the company is immediately suspending its monthly dividend.
- Mosaic Co., the largest U.S. producer of phosphate fertilizer, projected fourth-quarter profit that would top analysts’ estimates after margins for its two main crop nutrients exceeded its previous forecast.
- Google Inc. wants everyone connected to the Internet, and an investment in Elon Musk’s SpaceX could help further that cause. Google is close to investing in Space Exploration Technologies Corp., which wants to use satellites to spread online service to every corner of the world.
- Schlumberger Ltd. will pay $1.7 billion for a stake in Eurasia Drilling Co., a bet by the world’s largest oilfield services provider that economic sanctions won’t hold back Russia’s energy industry.
- The world’s second-biggest mining company Rio Tinto Group cut production of minerals including aluminium and copper as tumbling prices force suppliers to reassess growth plans.
- Morgan Stanley, owner of the world’s largest brokerage, reported profit that missed analysts’ estimates as fixed-income trading revenue fell to the lowest since the financial crisis.
- Johnson & Johnson, the world’s biggest maker of health-care products, forecast lower earnings in 2015 as competition cuts into revenue for some of its best-selling drugs.
- Delta Air Lines Inc.’s fourth-quarter profit beat analysts’ estimates, boosted by cheap fuel and strong demand in the U.S.
- European stocks advanced for a fourth day, extending their highest level in seven years, amid speculation that the European Central Bank will announce a plan for quantitative easing this week.
- The IMF made the steepest cut to its global-growth outlook in three years, with diminished expectations almost everywhere except the U.S. more than offsetting the boost to expansion from lower oil prices.
- SAP SE, which supplies the software that powers tens of thousands of companies’ operations, cut its 2017 profit target as a shift to software delivered over the Web hurts margins. The stock fell as much as 4.9 percent.
- German investor confidence jumped to the highest level in 11 months as the European Central Bank prepares for quantitative easing and the euro weakens.
- China’s stimulus efforts kicked in late last year, boosting producing and consumer spending, and helping full-year economic growth come close to the government’s target.
*All information is taken from Bloomberg, unless otherwise noted.