Investing.com — Big tech pushed Nasdaq to yet another record and lifted the Dow on Monday as investors looked past concerns about the economic fallout from Washington’s stalemate over new stimulus.
Apple Inc (NASDAQ:), Netflix Inc (NASDAQ:), Facebook Inc (NASDAQ:), and Microsoft Corporation (NASDAQ:) are all sharply higher for the year and rose again on Monday. Microsoft said it was pursuing a deal to buy the U.S. operations of the TikTok social media app popular with Gen Z. closed at 10,902, just a breath away from 11,000, as it continues its relentless rise. The rose nearly 1%, to 26,675.
Stocks also got a boost from strong earnings reports in recent days and data showing manufacturing is rebounding better than expected.
Anticipation is building over Friday’s monthly jobs report for July as lawmakers on Capitol Hill continue to argue over whether to reinstate a $600 weekly federal pandemic assistance payment to those who are unemployed.
Here are some things that could affect the markets tomorrow:
1. Banks are tightening the credit spigot
Banks are tightening their lending standards and terms for everything from commercial loans to household loans like mortgages and credit cards, according to the Federal Reserve’s loan officer survey. That could mean higher borrowing costs or less credit available for already Covid-challenged businesses and consumers.
Regulators have already told banks to hold off on stock buybacks so they can preserve capital out of fear that a looming credit crisis could leave them holding big losses. But at the same time, the Fed and other agencies have been encouraging banks to make more credit available to aid in the economic recovery process.
Still, financials are the second-worst performing sector of the so far this year, down more than 20%. Only energy was worse, down 40%. Shares of Bank of America Corp (NYSE:) are down 29% since the beginning of the year, while JPMorgan Chase & Co (NYSE:) is down 30% through July. Citigroup Inc (NYSE:) is down 36%. Wells Fargo & Company (NYSE:) is down 54%.
2. Investors eye Nikola’s earnings report on Tuesday
Nikola Corp (NASDAQ:) shares jumped 21% on Monday as the company prepared to release second quarter earnings on Tuesday. The shares gave back some of that gain in after-hours trading, falling 4.3%.
Deutsche Bank (DE:) said in a note on Monday that the electric truck maker could provide business updates that would drive the shares higher in the short term. Among the things investors are hoping to learn more about are the customer pipeline for Nikola’s electric semi, its plans to build a hydrogen refueling network, and a manufacturing partner for its Badger pickup truck, according to Deutsche Bank analyst Emmanuel Rosner, according to The Motley Fool.
Analysts have recently been raising their estimates for the quarter, which is typically a bullish sign.
3. TikTok makes news, and not because of a viral video
U.S. presidents typically don’t weigh in publicly on corporate M&A activity, but that’s not stopping Donald Trump from commenting on Microsoft Corporation (NASDAQ:)’s potential deal for the popular video-making app TikTok.
The president talked with Microsoft CEO Satya Nadella over the weekend and then the Seattle company confirmed that it was looking to buy TikTok’s operations in the U.S., Australia, Canada, and New Zealand. Trump has criticized TikTok and even threatened to ban it in the U.S. because of security concerns over its Chinese parent.
On Monday he told reporters at the White House that TikTok would be shut down on Sept. 15 unless Microsoft or another company buys it. TikTok has about 100 million users in the U.S., many of them teenagers and young adults.
Shares of another popular social media app, Snapchat by Snap Inc (NYSE:), fell 5.6% on Monday after the news of the Microsoft talks with TikTok. Facebook, which owns Instagram, fell less than 1%.
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
