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Stocks that should be on your Radar Screen

STOCK SEEING HEAVY BUYING

Snapshot time: 12:00noon Today

Note: Three sessions ago on the Asian market Pinduoduo (PDD) was up 14%.

STOCK SEEING HEAVY SELLING


11:00am MARKET MOVING NEWS Sept. 2nd, 2022,

A. CANADIAN MARKETS – TOP NEWS

TOP NEWS

• Slower, but still strong U.S. job growth expected in August U.S. employers likely continued to hire workers at a strong clip in August while steadily raising wages, signs of persistent labor market strength that could encourage the Federal Reserve to deliver a third 75 basis point interest rate hike this month.

• G7 finance chiefs seen advancing Russian oil price cap plan Group of Seven finance ministers are expected to firm up plans on Friday to impose a price cap on Russian oil aimed at slashing revenues for Moscow’s war in Ukraine but keeping crude flowing to avoid price spikes, G7 officials said.

• Turquoise Hill minority shareholder ‘not interested’ in Rio Tinto’s $3.3 billion offer A minority shareholder of Turquoise Hill Resources said it does not support Rio Tinto’s latest sweetened offer to buy the rest of the Canadian miner for $3.3 billion

. • China securities regulator says will implement Sino-U.S. audit deal China will implement its audit agreement with the United States announced last Friday and will strengthen communication with foreign institutional investors, a senior Chinese securities regulatory official said.

• Canada’s Sun Life to acquire majority stake in AAM for $214 million Canadian insurer Sun Life Financial said on Thursday it plans to acquire a majority stake in Advisors Asset Management through SLC Management, its institutional fixed income and alternatives asset manager, for $214 million.

POLL

Canada house prices set for sharp fall in 2023; BoC likely to hike 75 bps on Sept 7

According to Reuters poll reports Canada’s soaring house prices will decline sharply next year, but still not enough to make them affordable as the Bank of Canada is set to continue raising interest rates and keep them higher for longer.

BEFORE THE BELL

Canada’s main stock index was set to open firmer on a recovery in crude and gold prices, but the benchmark index was on course for its biggest weekly loss since June.

U.S. stock index futures struggled for direction and the U.S. dollar edged lower ahead of U.S. August nonfarm payrolls numbers due later in the day.

European equities rose, snapping five sessions of losses. Japan’s Nikkei posted worst weekly loss in 3 months on concerns over aggressive interest rate hikes globally.

STOCKS TO WATCH

Sun Life Financial Inc: The Canadian insurer said on Thursday it plans to acquire a majority stake in Advisors Asset Management Inc (AAM) through SLC Management, its institutional fixed income and alternatives asset manager, for $214 million. Sun Life intends to tap the fast-growing U.S. market of high net worth investors with the deal, that will see it own a 51% stake in U.S.-based AAM, which oversees $41.4 billion in assets as of July 31. The Canadian insurer said as part of the deal it will invest up to $400 million to launch SLC Management alternative products for the U.S. retail market, which will be distributed by AAM.

TC Energy Corp: The Canada Energy Regulator (CER) on Thursday said it issued TC Energy’s NOVA Gas Transmission Ltd (NGTL) an “Inspection Officer Order” after an injury at NGTL’s North Corridor Expansion Project worksite near Fairview, Alberta. “The Order requires the company to stop unloading pipe across the entire North Corridor Expansion Project and assess this procedure at all of their sites,” the regulator said. The worker suffered a serious, non-fatal injury when unloading a truck at the Bear Canyon stockpile yard when a 36” pipe fell on them, it said.

Turquoise Hill Resources Ltd: A minority shareholder of Turquoise Hill Resources said it does not support Rio Tinto’s latest sweetened offer to buy the rest of the Canadian miner for $3.3 billion. California-based SailingStone Capital Partners, which owns a 2.16% stake in Turquoise Hill, said the cash offer for the stake does not “adequately compensate” minority shareholders for their economic interest in Oyu Tolgoi. “Rio Tinto holds its interest in Turquoise Hill on the Rio balance sheet at $41 per share, the equivalent of C$56 per share at current exchange rates and a more than 30% premium to the revised offer,” SailingStone said.

EX-DIVIDENDS

Saputo Inc:                                          Amount C$0.18

Stelco Holdings Inc:                         Amount C$0.30

Stella-Jones Inc:                                Amount C$0.20

B.    US MARKETS – TOP NEWS

Slower, but still strong U.S. job growth expected in August

U.S. employers likely continued to hire workers at a strong clip in August while steadily raising wages, signs of persistent labor market strength that could encourage the Federal Reserve to deliver a third 75 basis point interest rate hike this month.

• China securities regulator says will implement Sino-U.S. audit deal

China will implement its audit agreement with the United States announced last Friday and will strengthen communication with foreign institutional investors, a senior Chinese securities regulatory official said.

• Starbucks taps head of Lysol maker Reckitt as its new CEO

Starbucks on Thursday named Laxman Narasimhan as its next chief executive officer, choosing an executive credited with revitalizing the maker of Lysol disinfectants to undertake a “reinvention” of the world’s biggest coffee chain.

• G7 finance chiefs seen advancing Russian oil price cap plan

Group of Seven finance ministers are expected to firm up plans on Friday to impose a price cap on Russian oil aimed at slashing revenues for Moscow’s war in Ukraine but keeping crude flowing to avoid price spikes, G7 officials said.

• Fed ends decade-long enforcement action against HSBC The U.S. Federal Reserve has terminated a decade-long enforcement action against HSBC under which Europe’s biggest bank by assets was ordered to improve practices after violating money laundering and sanction rules.

Before The BELL

Futures for Wall Street’s major indexes struggled for direction and the dollar edged lower ahead of U.S. August nonfarm payrolls numbers due later in the day. European equities rose, snapping five sessions of losses.

Japan’s Nikkei posted worst weekly loss in 3 months on concerns over aggressive interest rate hikes globally. In commodities, oil prices rallied on expectations that OPEC+ will discuss output cuts at a September 5 meeting and gold prices were marginally higher.

STOCKS TO WATCH TODAY

Results

Broadcom Inc: The company forecast fourth-quarter revenue above estimates as the semiconductor company expects resilient demand from businesses going digital to help it weather a likely chip industry slowdown. Broadcom forecast current-quarter revenue of about $8.9 billion, compared with analysts’ estimates of $8.73 billion. Adjusted profit of $9.73 per share on revenue of $8.46 billion in the quarter ended July 31 surpassed expectations of $9.56 profit on revenue of $8.37 billion.

Lululemon Athletica Inc: The company on Thursday raised its annual profit and revenue forecasts to above analysts’ estimates as affluent customers snap up its new belt bags, golf and tennis clothing. It lifted the adjusted per-share earnings outlook to between $9.75 and $9.90 from $9.35 to $9.50, and increased its net revenue forecast to between $7.87 billion and $7.94 billion from $7.61 billion to $7.71 billion. Second-quarter net revenue rose 29% to $1.87 billion, beating estimates of $1.77 billion. Adjusted per-share earnings of $2.20 also topped estimates of $1.87.

Corporate News

• 3M Co: Two U.S. military veterans on Thursday sued 3M to block its planned spinoff of its healthcare business, which they called an illegal attempt to avoid compensating veterans for hearing damage caused by the company’s military-issue earplugs. The veterans said in a lawsuit in federal court in Pensacola, Florida, that the spinoff was “little more than a formalism” intended to “wall off” assets, violating a Florida law barring debtors from fraudulently transferring assets in order to shield them from creditors. The case is expected to go before U.S. District Judge M. Casey Rodgers, who is already overseeing more than 220,000 lawsuits over the earplugs and has been harshly critical of the company’s legal strategy.

• Bed Bath & Beyond Inc: Jefferies analysts nearly doubled their price target on Bed Bath & Beyond this week, taking the opposite view from other brokerages on the same day the struggling retailer disclosed it had tapped Jefferies investment bankers for a stock sale. Brokerages typically have a strict separation between equity analysts covering companies and investment bankers working for them. There is no suggestion that Jefferies’ research note on Bed Bath and the bank’s hiring by the company were related. In a note published on Wednesday, Jefferies analyst Jonathan Matuszewski raised his price target on Bed Bath to $9 from $5, citing confidence in the company’s cost cutting measures that include job cuts and store closings. That is the highest price target on Bed Bath’s stock among the 16 analysts who cover it that are tracked by Refinitiv, with the median price target currently listed as $3.

• Credit Suisse Group AG: The bank, which has been buffeted by a string of scandals, management changes and global strategy rejigs, is still betting big on China and plans to launch a wealth business there next year, a senior Asia executive said. “In spite of all these rumours flying around that Credit Suisse is pulling back or pulling out of China, China is a long-term play for us,” Benjamin Cavalli, head of its Asia Pacific wealth management business, told Reuters in an interview. The bank aims to start offering wealth management services in China next year on the back of securing full ownership of its local securities venture, which is likely by the first quarter of next year, Cavalli said.

• Equinor ASA: The Norwegian energy group said it has completed its exit from Russia, delivering on a promise made after Russia’s invasion of Ukraine in February. This marks the first full, orderly exit from Russia by an international oil and gas company as pressure to leave mounts on others, such as TotalEnergies and ExxonMobil. “Equinor can now confirm that the full exit from Kharyaga has also been completed,” Equinor said on Friday. “Following the exit from Kharyaga, Equinor has no remaining assets or projects in Russia.”

• Exxon Mobil Corp & Shell PLC: Exxon and Shell on Thursday confirmed the sale of their California oil jointventure Aera to German asset manager IKAV for $4 billion, ending a 25-year-long partnership that was one of the state’s largest oil producers. The deal puts a company with conventional and renewable energy investments in charge of a living relic of California’s early oil and gas production. IKAV has 2.5 billion euros under management and owns wind, solar, geothermal and oil and gas operations. It operates a Colorado natural gas business acquired two years ago from BP. The transaction is expected to close in the fourth quarter of 2022, subject to regulatory approvals. Shell faces a $300 million to $400 million impairment charge as a result of the sale, it said. Separately, Shell has shortlisted four candidates to succeed Chief Executive Ben van Beurden who is preparing to step down next year after nearly a decade at the helm of the giant energy firm, two company sources told Reuters.

• Hollysys Automation Technologies Inc: A consortium led by China’s Hollysys management plans to take the U.S.-listed automation and control system maker private in a deal that would value the firm at $1.8 billion, people with knowledge of the matter said. The management team, led by founder and Chief Executive Officer Wang Changli, has won endorsement for the deal from the municipal government of Beijing, where the company is based, the people said. The team, acting under the local government’s guidance, has joined hands with a Beijingbased state firm for the potential deal, they added.

• HSBC Holdings PLC: The U.S. Federal Reserve has terminated a decade-long enforcement action against HSBC under which Europe’s biggest bank by assets was ordered to improve practices after violating money laundering and sanction rules. London-headquartered HSBC was accused in 2012 of degenerating into a “preferred financial institution” for Mexican and Colombian drug cartels and other wrongdoers through what the U.S. Department of Justice (DoJ) called “stunning failures of oversight”. The bank agreed to pay a then-record $1.92 billion in fines and abide by a business improvement order after acknowledging it failed to maintain an effective program against money laundering and conduct basic due diligence on some of its account holders.

• Meta Platforms Inc & Qualcomm Inc: Meta signed an agreement to have chip-maker Qualcomm produce custom chipsets for its Quest virtual reality (VR) devices, the companies announced at a consumer electronics conference in Berlin. Engineering and product teams of both companies will work together to produce the chips, powered by Qualcomm’s Snapdragon platforms, they said in a statement.

• NortonLifeLock Inc: Britain’s competition regulator finally cleared NortonLifeLock’s acquisition of British rival Avast, saying the security software market would remain competitive after the $8.6 billion merger of two of the biggest players. The Competition and Markets Authority (CMA) confirmed its provisional decision to allow the deal last month, removing the last major hurdle after it had received the green light in the United States, Spain and Germany.

• Rio Tinto PLC: A minority shareholder of Turquoise Hill Resources said it does not support Rio Tinto’s latest sweetened offer to buy the rest of the Canadian miner for $3.3 billion. California-based SailingStone Capital Partners, which owns a 2.16% stake in Turquoise Hill, said the cash offer for the stake does not “adequately compensate” minority shareholders for their economic interest in Oyu Tolgoi. “Rio Tinto holds its interest in Turquoise Hill on the Rio balance sheet at $41 per share, the equivalent of C$56 per share at current exchange rates and a more than 30% premium to the revised offer,” SailingStone said.

• Ryanair PLC: The company in August flew a record number of passengers for the fourth month in a row as it continued to consolidate its position as Europe’s largest airline by passenger numbers. The Irish low-cost carrier, which unlike many airlines made a point of keeping its pilots and crew up-to-date with their flying hours during the pandemic, flew 16.9 million passengers in August compared to a pre-COVID peak of 14.9 million in August 2019. Ryanair last week flew an average of over 3,000 flights a day, almost double the 1,600 flights of its next largest rival easyJet, according to European air traffic control agency Eurocontrol.

distan have asked the United States to help defuse an upsurge in tension between Iraq’s central government and the semi-autonomous region, according to a letter seen by Reuters and three sources.

• Boeing expects MAX 7 to be certified before MAX 10 – executive Boeing expects the 737 MAX 7 will be certified by the end of the year and the larger MAX 10 in the first half of 2023, a company executive said.

• Walmart enters deal to buy remaining stake in South Africa’s Massmart U.S. retail giant Walmart has signed an agreement to begin buying the 47% stake in South African retailer Massmart it does not own, the companies said in a joint statement. BEFORE THE BELL U.S. stock futures fell, along with global equity markets, as weak factory activity surveys from Europe and Asia escalated economic slowdown worries. The dollar climbed to a 24-year peak against the Japanese yen, while gold dropped below the key $1,700 psychological level for the first time in six weeks. Oil prices slid as new COVID-19 lockdown measures in China fueled demand concerns. The Institute for Supply Management’s report, due later in the day, is expected to show manufacturing activity dropped to 52.0 last month from 52.8 in July, the lowest reading since June 2020. A reading on weekly jobless claims is also scheduled for release.

 (Some parts of this article were published by TD Bank earlier today)