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A look at North American equities heading in both directions

On the rise

Shares of Shopify Inc. (SHOP-T) soared on Monday after it announced a 17-per-cent year-over-year rise in Black Friday sales to US$3.36-billion.

At its peak, it says merchants saw a total of US$3.5 million in sales per minute.

The company says top product categories were apparel and accessories, followed by health and beauty, and home and garden.

Top selling countries and cities where shoppers made purchases from were the United States, United Kingdom and Canada.

“Black Friday Cyber Monday has grown into a full-on shopping season. The weekend that started it all is still one of the biggest commerce events of the year, and our merchants have broken Black Friday sales records again,” said Shopify president Harley Finkelstein in a release. “Our merchants have built beloved brands with loyal communities that support them. This weekend, we’re celebrating the incredible power of entrepreneurship on a global stage.”

Solving Shopify’s misery: How Canada’s tech saviour lost its swagger — and why investors remain so scared

Bombardier Inc. (BBD.B-T) rose after the aircraft manufacturer said that it will begin a special mission modification package in Wichita, Kansas as part of a German Pegasus surveillance aircraft project.

“This most recent milestone is a testament to the quality of Bombardier jets for both VIP transport and special mission applications,” said Steve Patrick, Vice President, Bombardier Defense in a statement. “Bombardier Defense’s full suite of mission-specific design, manufacturing, and certification capabilities, combined with Lufthansa Technik’s expertise will ensure Hensoldt receives a reliable, high-performing platform, perfectly tailored to their mission requirements and payload.”

See also: Bombardier’s jet sales activity in Canada has cooled since new tax on luxury items came into effect, CEO says

China’s Pinduoduo Inc. (PDD-Q) beat Wall Street estimates for third-quarter revenue on Monday, helped by COVID-related lockdowns in the country that forced consumers to shop online, sending its shares higher

The intermittent lockdowns and a recovery in consumer spending helped Pinduoduo and other online retailers gain business in the by-gone quarter.

Pinduoduo’s revenue increased 65 per cent to 35.50 billion yuan (US$4.99-billion) in the quarter ended Sept. 30, surpassing estimates of 30.94 billion yuan, according to Refinitiv data.

Pinduoduo’s performance comes as the latest reports by larger e-commerce peers point to a recovery in the Chinese market. Inc. (JD-Q) posted an 11.4-per-cent rise in third-quarter revenue last week and said that it was seeing signs of a consumption recovery. Rival Alibaba Group Holding Ltd. (BABA-N) reported 3-per-cent revenue growth for the second quarter.

Casino operators in China jumped on Monday after Macao city’s government said all six incumbent casino operators would be given new licenses to operate in the world’s biggest gambling hub from January.

The highly anticipated announcement on licenses signals stability and continuity for the Macau operators, which have invested more than US$50-billion in the Chinese special administrative region in the past 20 years.

“This removes a major overhang for the sector, particularly for the U.S. operators, and should be taken as a strong positive by the market,” UBS wrote in a research note on Monday.

“We view this as the best outcome for Macau’s gaming industry and the economy, as it ensures a seamless transition into the next concession period starting on 1 Jan 2023.”

Companies seeing gains include MGM Resorts International (MGM-N), Las Vegas Sands Corp. (LVS-N) and Wynn Resorts Ltd. (WYNN-Q).

On the decline

Shares of Apple Inc. (AAPL-Q) fell on Monday as growing unrest at a key Chinese plant fanned worries of a bigger hit to the already constrained production of higher-end iPhone 14 models.

Reuters reported on Friday that the Foxconn-operated plant, which is the world’s biggest iPhone factory, could see a further drop in November shipments due to worker unrest and rising COVID-19 cases in the country.

Separately, Bloomberg News reported citing a source earlier in the day that there could be a shortfall of 6 million iPhone Pro units this year due to production-related problems.

“The ongoing challenges around delays in returning to a normal level of production at the Zhengzhou facility could limit the pace with which supply-demand equilibrium can be reached in the coming months,” J.P. Morgan analysts said.

They added that lead times for Pro models have moderated except in China where the timeline remains elevated.

Customers in the United States wait for about 33 days for their iPhone 14 Pro and Pro Max models to be delivered home, while the same models are not available for in-store pickup, the brokerage said.

With files from staff and wires

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