Stocks rose Monday as investors considered positive developments around a coronavirus vaccine candidate, and eyed a flurry of newly announced mergers and acquisitions among major companies. Tech shares shook off last week’s jitters and led the S&P 500 higher.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="AstraZeneca (AZN) announced over the weekend that its late-stage Covid-19 vaccine trials with the University of Oxford had resumed, after safety concerns over a suspected adverse reaction from a participant had led the company to pause trials temporarily a week earlier. Shares rose about a 0.5% in early trading.” data-reactid=”14″>AstraZeneca (AZN) announced over the weekend that its late-stage Covid-19 vaccine trials with the University of Oxford had resumed, after safety concerns over a suspected adverse reaction from a participant had led the company to pause trials temporarily a week earlier. Shares rose about a 0.5% in early trading.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Elsewhere, Oracle (ORCL) shares rose after the company on Monday confirmed reports that it was included in a proposal for TikTok that the social media owner’s ByteDance submitted to the US Treasury Department over the weekend. This followed reports from multiple news outlets that the tech company landed a partnership with TikTok’s US business unit, edging out Microsoft (MSFT), which had previously been viewed as the frontrunner for a tie-up with the fast-growing social media company. Microsoft shares ticked lower in pre-market trading, extending losses from Friday.” data-reactid=”15″>Elsewhere, Oracle (ORCL) shares rose after the company on Monday confirmed reports that it was included in a proposal for TikTok that the social media owner’s ByteDance submitted to the US Treasury Department over the weekend. This followed reports from multiple news outlets that the tech company landed a partnership with TikTok’s US business unit, edging out Microsoft (MSFT), which had previously been viewed as the frontrunner for a tie-up with the fast-growing social media company. Microsoft shares ticked lower in pre-market trading, extending losses from Friday.
“Global markets are kicking off the week on an optimistic footing, with M&A activity and vaccine developments helping to lift spirits after recent declines,” Josh Mahony, senior market analyst at IG, wrote in an email Monday.
The development between Oracle and TikTok “does help ease friction between the US and China, yet there will be questions over just how much data remains available to the main entity,” he added. “On the vaccine front, news that the AstraZeneca vaccine trial is to resume provides a significant boost after fears that complications with one participant could represent a significant hurdle to development. With Trump telling states to expect a vaccine before the election, there is a feeling that we are in the home straight in the push for an effective treatment.”
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Other major corporations also announced massive new deals over the weekend. Chipmaker Nvidia (NVDA) announced it was purchasing SoftBank Group’s chip unit Arm Limited in a transaction valued at $40 billion – the largest ever in the semiconductor industry. Elsewhere, Gilead Sciences (GILD) agreed to purchase Immunomedics (IMMU) in an about $21 billion deal, adding the latter’s tumor-fighting drugs to the pharmaceutical giant’s portfolio. Shares of Gilead rose slipped 1% in early trading, while Immunomedics’ stock more than doubled.” data-reactid=”18″>Other major corporations also announced massive new deals over the weekend. Chipmaker Nvidia (NVDA) announced it was purchasing SoftBank Group’s chip unit Arm Limited in a transaction valued at $40 billion – the largest ever in the semiconductor industry. Elsewhere, Gilead Sciences (GILD) agreed to purchase Immunomedics (IMMU) in an about $21 billion deal, adding the latter’s tumor-fighting drugs to the pharmaceutical giant’s portfolio. Shares of Gilead rose slipped 1% in early trading, while Immunomedics’ stock more than doubled.
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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="11:39 a.m. ET: Alphabet-owned YouTube set to launch TikTok competitor ” data-reactid=”22″>11:39 a.m. ET: Alphabet-owned YouTube set to launch TikTok competitor
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Alphabet’s (GOOG, GOOGL) YouTube unit is set to launch a short-form video platform called “Shorts,” entering into direct competition with TikTok and Facebook’s (FB) newly launched “Reels” content service.” data-reactid=”23″>Alphabet’s (GOOG, GOOGL) YouTube unit is set to launch a short-form video platform called “Shorts,” entering into direct competition with TikTok and Facebook’s (FB) newly launched “Reels” content service.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The early beta version of Shorts, which will include videos 15 seconds in length or less, will be launched over the next few days in India, Alphabet said Monday. ” data-reactid=”24″>The early beta version of Shorts, which will include videos 15 seconds in length or less, will be launched over the next few days in India, Alphabet said Monday.
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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="11:17 a.m. ET: Expectations that tech stocks will remain under pressure ‘seem exaggerated’: Oppenheimer” data-reactid=”26″>11:17 a.m. ET: Expectations that tech stocks will remain under pressure ‘seem exaggerated’: Oppenheimer
Concerns that last week’s sharp drawdown in tech stocks will drag on may be overblown, according to Oppenheimer Chief Investment Strategist John Stoltzfus. Last week, the Nasdaq dropped more than 10% over three sessions, as crowding in tech stocks from earlier on during the pandemic period quickly unwound.
“Current expectations that technology stocks will remain under pressure for some time seem exaggerated to us,” Stoltzfus said in a note. “While some technology stocks have gotten overvalued (the high flying names – particularly relatively new companies that soared to prices and multiples that seemed lofty) the core of technology stocks did not appear terribly rich in price considering that developments in technology and innovation have yet to show signs of plateauing in the current cycle. If anything technology has served to keep many segments of the economy not just alive but vibrant during an unprecedented shutdown of large segments of the US and world economies.”
“Our expectations are for technology to lead in serving companies in the other ten sectors once the spread of Covid-19 is stemmed and the domestic and international economies move toward global expansion. We also expect technology to continue to benefit from a virtuous upgrade cycle from consumers,” he added.
Stoltzfus added that the firm’s prior 2020 target price of 3,500 on the S&P 500 remains in suspension until further earnings visibility comes into relief. Oppenheimer remains overweight US equities, “while maintaining meaningful exposure to both developed and emerging markets on expectations that an economic recovery stateside coming out of the Covid-19 shutdown will help boost economic growth around the world and lead to a global economic expansion.”
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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="10:15 a.m. ET: Oracle confirms it was included in proposal from ByteDance to US Treasury” data-reactid=”36″>10:15 a.m. ET: Oracle confirms it was included in proposal from ByteDance to US Treasury
Oracle confirmed that ByteDance had included the company in a proposal for social media company TikTok over the weekend.
“Oracle confirms Secretary Mnuchin’s statement that it is part of the proposal submitted by ByteDance to the Treasury Department over the weekend in which Oracle will serve as the trusted technology provider,” the company said in a statement.
Oracle shares were halted shortly after market open Monday morning, for pending news. The company over the weekend was reported to have won a deal for TikTok’s US operations, with the tie-up likely set to be structured as a corporate restructuring rather than full purchase.
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9:32 a.m. ET: Stocks open higher, tech stocks regain footing
Here were the main moves in markets, as of 9:33 a.m. ET:
S&P 500 (^GSPC): +31.76 points (+0.95%) to 3,373.64
A trader working on the floor of the New York Stock Exchange (NYSE) is reflected on a monitor in Manhattan in New York, U.S., October 10, 2018. REUTERS/Brendan McDermid
TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.
The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.
“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.
The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.
But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.
Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.
“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.
“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”
Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.
The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.
In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.
Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.
The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.
The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.
Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.
Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.
It will also re-evaluate its design ranks.
Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.
Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.
This report by The Canadian Press was first published Sept. 13, 2024.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.
No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.
About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.
Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.
Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.
A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”
This report by The Canadian Press was first published Sept. 12, 2024.
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
