Canada stocks higher at close of trade; S&P/TSX Composite up 0.85%

Investing.com – Colombia stocks were higher after the close on Friday, as gains in the Industrials, Services and Agriculture sectors led shares higher.

At the close in Colombia, the COLCAP added 0.24%.

The best performers of the session on the COLCAP were Grupo Bolivar SA (BVC:SCA), which rose 1.94% or 1,740.00 points to trade at 91,260.00 at the close. Meanwhile, Corporacion Financiera Colombiana SA (BVC:CFV) added 1.21% or 220.00 points to end at 18,400.00 and Celsia SA (BVC:CEL) was up 0.41% or 20.00 points to 4,900.00 in late trade.

The worst performers of the session were Organizacion Terpel SA (BVC:TPL), which fell 4.68% or 800.00 points to trade at 16,300.00 at the close. Banco Davivienda Pf (BVC:DVI_p) declined 3.38% or 980.00 points to end at 28,020.00 and Interconnection Electric SA ESP (BVC:ISA) was down 2.66% or 640.00 points to 23,420.00.

Falling stocks outnumbered advancing ones on the Colombia Stock Exchange by 0 to 0.

Shares in Grupo Bolivar SA (BVC:SCA) rose to 3-years highs; up 1.94% or 1,740.00 to 91,260.00.

US coffee C for December delivery was down 8.17% or 33.20 to $373.30 . Elsewhere in commodities trading, US cocoa for delivery in March fell 2.37% or 125.00 to hit $5,157.00 , while the December Gold Futures contract rose 0.03% or 1.16 to trade at $4,061.16 a troy ounce.

USD/COP was down 0.26% to 3,754.09, while BRL/COP fell 1.61% to 694.69.

The US Dollar Index Futures was down 0.01% at 100.08.

Investing.com -- The S&P 500 jumped Friday, underpinned by rising hopes for December rate cut, though Nvidia’s swing higher proved short-lived, keeping broader market upside in check despite a report that the U.S. is mulling allowing Nvidia to sell its AI chips sales to China.

At 4:00 p.m. ET (20:00 GMT), the Dow Jones Industrial Average rose 494 points, or 1.6%, the S&P 500 index gained 1.6%, and the NASDAQ Composite climbed 1.6%.  

Big tech rebounds, but Nvidia’s swing higher fades despite US reportedly mulling lifting ban on Nvidia chip sales to China

Alphabet Inc Class A (NASDAQ:GOOGL) and Apple Inc (NASDAQ:AAPL) led the big tech rebound as investors bought the recent dip in tech. 

NVIDIA Corporation (NASDAQ:NVDA) swung between gains and losses in volatile trade amid a report U.S. officials are flirting with the idea of lifting a ban on Nvidia H200 AI chips to China. 

US officials are in early talks on whether to allow Nvidia to sell its H200 AI chips to China, according Bloomberg reported, citing familiar with the matter. 

The move lifted sentiment on AI names, which have soured by concerns about an artificial intelligence bubble. Investor Michael Burry, famous for predicting the 2008 financial crisis, warned recently that true end demand for AI was far less than what valuations were suggesting. 

That said, analysts at Capital Economics offering some optimism, stating, in a note, that "if the AI stock market boom turned to bust, we suspect the correction would be somewhat smaller but significantly shorter-lived than the one that took place after the dotcom bubble burst."

Fed’s Williams boosts rate cut hopes

Sentiment received a boost Friday after Williams said, in a speech at the Central Bank of Chile Centennial Conference, that he sees "room for a further adjustment in the near term to the target range for the federal funds rate." He noted that downside risks to employment have increased while upside risks to inflation have lessened.

Williams described current monetary policy as "modestly restrictive" and indicated a desire to move the policy stance "closer to the range of neutral."

Following Williams’ comments, traders boosted the odds of a December rate cut to nearly 70%, up from nearly 29% a day earlier.

These comments partly allayed concerns exacerbated by stronger-than-expected job growth for September, detailed by the delayed jobs report released on Thursday, that the Fed will keep interest rates unchanged next month. 

Gap shines on earnings stage as retail sector earnings remain in focus 

The retail sector remained in focus Friday, with BJs Wholesale Club Holdings (NYSE:BJ) stock gaining after the wholesale club operator’s third-quarter fiscal 2025 earnings exceeded expectations, prompting a raising of its full-year profit outlook on the strength of growing membership income.

Additionally, Gap (NYSE:GAP) stock rose after the clothing retailer beat expectations for third-quarter comparable sales, helped by strong marketing-driven demand for its Old Navy and Banana Republic brand apparel even amid economic uncertainty.

Ross Stores (NASDAQ:ROST) also gained after the off-price retailer beat Wall Street’s expectations, with the company’s chief executive officer saying that it has seen an “excellent back-to-school season with strong trends that continued through the balance of the quarter.”

Peter Nurse, Ambar Warrick contributed to this article

Investing.com -- The proposed $25 billion merger between Akzo Nobel NV (AS:AKZO) and Axalta Coating Systems Ltd (NYSE:AXTA) is facing rising shareholder scrutiny, with two major Axalta investors, Artisan Partners and Shapiro Capital Management, now publicly opposing the all-stock deal that would form a global coatings giant with roughly $17 billion in annual revenue.

Artisan Partners, an estimated 0.7% holder of Axalta stock,  issued the first major challenge earlier this week, questioning the valuation, governance structure, and whether Axalta is receiving fair consideration in what AkzoNobel characterizes as a no-premium, merger-of-equals transaction.

Shapiro Capital followed, saying it is “very disappointed” with the agreement. In an interview with The Wall Street Journal, President Louis Shapiro argued that Axalta investors “should get the premium they deserve,” adding that the firm, a top-25 Axalta shareholder with a 1.1% stake, will vote against the merger unless terms are improved or alternatives are explored.

The two stand in contrast with Cevian Capital, which has thrown its support behind the proposed combination, saying the deal reflects the “significant value potential” tied to consolidation in the coatings and paint industry, according to reporting from Bloomberg. The activist investor previously built up a roughly 5% stake in Akzo Nobel.

Deal Structure and Terms Under Fire
Under the current terms, Axalta shareholders would receive 0.6539 AkzoNobel shares for each Axalta share, leaving them with 45% of the combined company. AkzoNobel shareholders would hold 55% and receive a €2.5 billion special dividend prior to closing.

AkzoNobel CEO Greg Poux-Guillaume noted on the analyst call that the agreement was intentionally designed as a no-premium, MOE structure, an approach increasingly at odds with shareholders seeking a control premium.

Companies Defend the Merger to Investing.com
In response to shareholder pushback, both companies defended the transaction in statements to Investing.com.

AkzoNobel said the merger “will create a leader in paints and coatings with a highly attractive financial profile, industry-leading innovation and unparalleled global reach,” adding that the deal is “rooted in clear strategic and financial logic” and will create significant value for both sets of shareholders.

Axalta emphasized the synergy opportunity, saying: “We are confident that our pending merger with AkzoNobel represents the best alternative to drive substantial long-term growth and value creation for Axalta shareholders through approximately $600 million of actionable run-rate synergies.” The company added, "We look forward to continuing to engage with our shareholders.”

What Management Highlighted on the Call
On the post-announcement call, executives outlined:

• ~$600 million in actionable run-rate cost synergies, with 90% expected within three years

• A global footprint of 173 manufacturing sites and 91 R&D centers

• A combined workforce of 4,200 scientists and engineers and ~100 brands across industrial, refinish, mobility, aerospace, marine, powder, and decorative markets

• Expected $3.3 billion in adjusted EBITDA, 20% EBITDA margins, and $1.5 billion in adjusted free cash flow

• A closing timeline that could extend into late 2026 or early 2027

Management argued the combination offers scale and innovation neither company could achieve independently, as the two seek to compete with coating industry leaders PPG Industries Inc (NYSE:PPG) and Sherwin-Williams Co (NYSE:SHW).

Growing Resistance Ahead of a Pivotal Vote
With both Artisan and Shapiro now opposed, Axalta’s board is navigating increasing pressure from shareholders who argue the company is being undervalued, and who may push for renegotiated terms or a broader sale process. The vote, expected next year, is shaping into a major test of whether the companies can secure investor buy-in for one of the coatings industry’s largest-ever mergers.

Investing.com -- Elanco Animal Health Incorporated (NYSE:ELAN) stock rose 4% Friday after the company received Emergency Use Authorization from the U.S. Food and Drug Administration for its Credelio CAT treatment against New World screwworm infestations in cats.

The authorization represents the first FDA emergency use approval for New World screwworm treatment in felines and comes as cases have been detected within 70 miles of the U.S.-Mexico border. Last month, Credelio received a similar authorization for treating New World screwworm in dogs.

"The FDA’s swift and thorough evaluation of the scientific evidence showing Credelio CAT’s potential effectiveness against New World screwworm in cats is greatly appreciated," said Dr. Ellen de Brabander, Executive Vice President of Innovation and Regulatory Affairs at Elanco.

The FDA based its authorization on research evaluating Credelio CAT’s efficacy against Old World screwworm in cats and Credelio’s effectiveness against New World screwworm in dogs. The emergency use authorization provides veterinarians and pet owners with a treatment option for cats should the fly enter the United States.

New World screwworm infestations occur when female flies lay eggs on open wounds in live animals. According to the Centers for Disease Control, even wounds as small as tick bites may attract female flies, with one female capable of laying 200-300 eggs at a time and up to 3,000 eggs during her lifespan.

Credelio CAT is already approved for treating and preventing flea infestations in cats and kittens 8 weeks and older weighing 2 pounds or greater, and for treating black-legged tick infestations in cats 6 months and older.

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