A roundup of some of the North American equities making moves in both directions today
On the rise
Intel Corp. (INTC-Q) rose 8.1 per cent after it cemented the market view that a prolonged slowdown in the chip industry was bottoming out by forecasting full-year revenue and profit above analysts’ estimates.
The company’s sales in its closely watched data center business jumped 19 per cent, helping it beat fourth-quarter profit and revenue estimates.
Intel said its transition to a newer generation of chipmaking technology was progressing better than it expected and that it would boost its capacity to make chips for personal computers, in a sign that the manufacturing woes that plagued the chipmakers over the past year were starting to ease.
In a research note released before the bell, RBC Dominion Securities analyst Mitch Steves said: “ntel reported solid results on higher than expected Data Center demand and we think the Company is benefiting from an improving macro environment. If we’re correct in this assessment, we think data center competitors Nvidia and AMD will continue to outperform Intel due to share gains (rising tide is currently lifting all boats) and Intel’s guide implies that 1H20 revenues will be above 2H20 revenues. If AMD and Nvidia do not surprise to the upside (don’t beat/raise), we may need to reassess our current assumptions on Intel.”
Barrick Gold Corp. (ABX-T) rose 1.5 per cent after it signed a deal with Tanzania on Friday in which the government will take stakes in three gold mines, ending a long-running tax dispute and setting a template for negotiations with other firms.
It was signed by Barrick CEO Mark Bristow and Tanzanian minerals minister Doto Biteko at a ceremony in the commercial capital, Dar es Salaam.
It follows an announcement by the two sides in October in which they agreed to a payment of $300 million to settle outstanding tax and other disputes, the lifting of an export ban on concentrates and the sharing of future economic benefits from mines.
American Express Co. (AXP-N) was 2.8 per cent higher after it reported a fourth-quarter profit on Friday that beat analysts’ estimates, as more people used its cards for shopping and paying bills while a strong U.S. retail sales environment also helped.
Spending by customers using AmEx cards during the quarter rose 6 per cent in the United States and 4 per cent in overseas markets, as the company spent more on its rewards program to woo customers.
The company spent US$2.72 billion on card member rewards, up 8 per cent from a year earlier. This pushed up total expenses by 9 per cent to US$8.36-billion in the reported quarter.
Chipmaker Broadcom Inc. (AVGO-Q) increased 1.4 per cent announcing on Thursday it has entered into two multi-year agreements with Apple Inc. (AAPL-Q) for the supply of wireless components used in its products.
The agreements, “2020 SOWs”, are in addition to the existing ones for supplying radio frequency components and modules to the iPhone maker and together could generate as much as US$15-billion in revenue for Broadcom.
Boeing Co. (BA-N) reversed course and rose 1.7 per cent amid reports Federal Aviation Administrator Steve Dickson is calling senior U.S. airline officials to tell them that the agency could approve the grounded Boeing 737 MAX’s return to service before mid-year, a government official said Friday.
Dickson’s calls come days after Boeing said it was pushing back its time-line for approval of the plane’s return and “currently estimating that the ungrounding of the 737 MAX will begin during mid-2020.”
The agency confirmed in a statement Friday that Dickson is making calls “to reiterate that the FAA has set no time frame for completion of certification work on the aircraft.” The agency added it is “pleased with Boeing’s progress in recent weeks toward achieving key milestones.”
FAA approval before mid-year could only happen if Boeing continues to make complete and thorough submissions, the official said, and emphasized that unforeseen issues could always potentially delay approval.
On the decline
Shares of Aphria Inc. (APHA-T) slid 8.6 per cent on Friday after the cannabis producer announced it has entered into an agreement to accept a strategic investment from an institutional investor to purchase 14 million shares at a price of $7.12 per unit for aggregate gross proceeds of $100-million.
Domtar Corp. (UFS-T) lost 4.8 per cent after saying it expects to report fourth-quarter sales of US$1.2-billion, in line with expectations of US$1.27-billion and below sales of US$1.39-billion for the same quarter a year earlier.
The company also expects to report an operating loss of between US$15-million and US$19-million. EBITDA is expected to be between US$74-million and US$78-million. The company said the expected operating loss in the fourth quarter includes closure and restructuring costs of approximately US$19-million and depreciation and amortization of US$74-million.
With files from Brenda Bouw, staff and wires