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DJ Global Equities Roundup: Market Talk

· 02/04/2021 16:56

The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

1656 ET - The S&P/TSX Composite Index rises 0.7% to 18041. The blue-chip S&P/TSX Index gains 0.8% to close at 1068. Canada Goose soars 22% after the company known for its outerwear reported revenue for F3Q that rose for the first time during the pandemic, beat forecasts from analysts and said it was helped by stronger ecommerce demand. (micah.maidenberg@wsj.com; @MicahMaidenberg)

1649 ET - Drugmaker Mallinckrodt has picked a mediator to help resolve questions over how the drugmaker's $1.6B settlement of opioid-related litigation should be allocated among people who have asserted drug-related injuries and other creditor groups. Mallinckrodt has asked a judge to appoint Kenneth Feinberg to assist in negotiations on the allocation issue, according to court papers the drug company filed yesterday in the US Bankruptcy Court in Wilmington, Del. Resolving how proceeds will be distributed is a key obstacle to finalizing a chapter 11 plan of reorganization, Mallinckrodt says. The company filed for bankruptcy protection in October with the outline of a deal to resolve thousands of opioid-related lawsuits already in hand. (jonathan.randles@wsj.com)

1642 ET - Peruvian President Francisco Sagasti says his government signed a deal with Pfizer to receive 20 million coronavirus vaccines. Sagasti says the first 250,000 shots will arrive in March, and another 300,000 in April. Peru also has contracts with Sinopharm, which is expected to deliver the first million doses of its vaccine on Feb. 13, Sagasti says. The country has also inked a deal to receive vaccines from AstraZeneca and through the Covax initiative. (ryan.dube@wsj.com; @duberyan)

1626 ET - T-Mobile's 2020 Sprint purchase gave the combined company opportunities to save money in the long run as well as big near-term costs, a fact reflected in 2021 guidance. The cellphone carrier says merger-related costs will run $2.5B-$3B before taxes this year, adding to last-year's $1.9B tab for combining once separate stores, back-office jobs and network infrastructure. Integrating the erstwhile rival contributed to a slightly lower 4Q profit result despite much higher revenue from new Sprint customers. (andrew.fitzgerald@wsj.com; @drewfitzgerald)

1623 ET - US air-safety regulators ordered high-priority inspections to check the structural integrity of rudders on more than 1,600 single-aisle Airbus jets registered in the US. The move, following a similar safety directive issued last month by European authorities, is intended to check for potentially hazardous internal breakdowns of sections of composite rudders installed on various Airbus models, including popular A320 and A321 aircraft. If inspections reveal problems, the issues must be resolved. Over the years Airbus has had durability and safety problems with some composite parts, and this time the inspections are intended to identify problems stemming from earlier rudder repairs. Defects could cause "reduced structural integrity of the rudder, and consequent reduced controllability of the airplane," according to the FAA. (andy.pasztor@wsj.com)

1610 ET - Clorox says its namesake disinfecting wipes won't be fully in stock until the end of 2021, about six months later than the company initially expected. Pandemic-fueled demand continues to outpace the company's ability to make wipes, despite moves over the last year to double capacity. In the meantime, Clorox has lost share to smaller, relatively-unknown rivals that capitalized on its inability to meet soaring demand. Clorox shares closed off 6% today. (sharon.terlep@wsj.com)

1614 ET - Activision Blizzard posts a 4Q increase in revenue and net bookings, as people continued to turn to videogames to stay entertained during the pandemic. But the maker of Call of Duty says implied adjusted EPS slipped to $1.21, down from $1.23 a year ago. Revenue of $2.41B and net bookings of $3.05B were up from $1.99B and $2.71B, respectively. For the full year, the company says it generated $8.09B in revenue and $8.42B in net bookings, up from $6.49B and $6.39B for 2019, respectively. Activision shares are up 5% in after-hours trading. (sarah.needleman@wsj.com; @saraheneedleman)

1613 ET - New Zealand's NZX-50 index rises 0.4% to 13048.85, boosted by US stocks notching a fourth consecutive session of gains in the wake of upbeat jobs data. The DJIA and the S&P 500 each lifted 1.1%, after new US data showed that 779,000 people applied for initial benefits last week, a decline from the previous week. Meridian rose 0.6% to reach NZ$7.015 and pull off six-month lows, while Mercury NZ added 1.2% to NZ$7.235. Logistics groups also advanced, with Mainfreight gaining 1.7% to NZ$66.50 and Freightways rising 0.3% to NZ$10.80. Sky Network TV holds on to gains from this week's big rally. It is unchanged at NZ$0.18 after the Commerce Commission granted clearance for NEP to purchase the assets of Outside Broadcasting. (david.winning@wsj.com; @dwinningWSJ)

1605 ET - US stocks rise broadly as jobless claims come in lower than expected, with the Nasdaq and S&P hitting all-time highs. Last week, 779,000 people applied for initial jobless benefits, a still historically high number due to the ongoing pandemic. Qualcomm slides 8.8% as it just missed revenue expectations, saying results were hurt by supply restraints. EBay gains 5.3% and PayPal jumps 7.4% as their bottom lines rose. The Dow gains 1.1% to 31056 and the S&P 500 rises 1.1% to 3871, with both indexes up all four days so far this week. The Nasdaq advances 1.2% to 13777. (jonathan.vuocolo@wsj.com; @jonvuocolo)

1552 ET - Private-equity and venture-capital firms worldwide reached a record of $4.74 trillion in assets under management in June, up 6.1% from the end of 2019, according to a report by Preqin. Private-equity's expansion is likely to accelerate as investors in general expect to increase their allocations to the asset class this year, the data provider says. The median allocation in the US, at 6.3% of AUM, is higher than in developing markets, but those are expanding fast. In Asia, for one, investors during 2020 bumped up their median allocation to private equity to 5% of AUM from 3.6%. (luis.garcia@wsj.com; @lhvgarcia)

1500 ET - Hershey saw "temporary market opportunities through the year" that led to declining prices for cocoa butter, one of the products the company uses to make candy, finance chief Steve Voskuil said in remarks tied to Hershey's 4Q report. Those dynamics "softened the impact of the increased investment associated with the living income differential this year," he adds. Hershey and some other candy companies have faced accusations that they have tried to avoid the income differential, a $400-a-ton surcharge on cocoa from West Africa that is meant in part to combat poverty. Hershey is fully participating in the differential program for 2020 and 2021, Voskuil says. (micah.maidenberg@wsj.com; @MicahMaidenberg)

1442 ET - A big rebound in the commercial truck market is under way. Cummins forecasts production of heavy-duty trucks in North America will increase by as much as 40% this year over 2019. Cummins supplies diesel engines for about one-third of all heavy-duty trucks built in North America. The engine maker predicts a full-year volume of 245K to 265K vehicles. That increase will be offset by lower sales of Cummins' engines in China where a red-hot truck market in 2020 is expected to cool later in the year. Cummins predicts revenue from its engine business to rise by 10%-14% this year. Shares down 1% at $233.13. (robert.tita@wsj.com; @bob_tita)

(END) Dow Jones Newswires

February 04, 2021 16:56 ET (21:56 GMT)

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