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Here are five things you need to know this morning
Stock markets under pressure: U.S. equity futures were in the red this morning, indicating the losing streak for American stocks is likely to continue. The S&P500 index has declined for four straight sessions, with technology stocks seeing the largest drops, amid worries that their sharp rally since April has advanced too far. The Canadian market has been faring better, with the S&P/TSX composite index holding steady this month. Traders are staying cautious as the Jackson Hole symposium kicks off later today, with investors awaiting Fed Chair Jerome Powell’s speech on Friday for guidance on the path for interest rates.
Walmart profit miss: The market is also being weighed down by the latest results from Walmart. The retail giant reported quarterly profit that missed expectations for the first time in three years. Walmart cited a rise in insurance claims, legal charges and restructuring costs as factors weighing down its profit. Also, the company’s CEO says tariff costs are increasing each week, and higher prices are particularly affecting low and middle-income customers.
EU – U.S. formalize trade pact: The U.S. and the European Union have taken the next steps to formalize their trade pact, detailing plans that could reduce tariffs on European automobiles within weeks while opening the door to new potential discounts for steel and aluminum. The joint statement issued Thursday advances the preliminary deal announced a month ago, by including specific benchmarks for the EU to secure its promised sectoral tariff discounts on cars, pharmaceuticals and semiconductors, as well as new commitments to cooperate on economic security matters, food standards and digital trade.
Dream Residential agrees to takeover: We have two takeovers today with Canadian connections. Dream Residential Real Estate Investment Trust has agreed to be acquired by Morgan Properties in an all-cash deal valued at about US$354 million. The deal follows Dream Residential’s strategic review process. The Toronto-based company owns a portfolio of multi-residential properties mainly located in the U.S. Sunbelt and Midwest regions.
Thoma Bravo to buy Dayforce: HR software provider Dayforce has finalized a deal with private equity firm Thoma Bravo to go private. The all-cash deal is valued at US$12.3 billion and is expected to close by early 2026. Dayforce has been led by Toronto entrepreneur David Ossip since merging with U.S. software company Ceridian back in 2012.