Enliven stock falls after ASH updates shift CML treatment landscape

The Canadian consumer will remain firmly focused on value in 2026, forcing investors to favor predictable growth and quality over deep-value plays, according to a recent research note from RBC Capital Markets. The firm’s analyst, Irene Nattel, maintained a "cautious outlook" on household spending, emphasizing that the economic recovery continues to be bifurcated, a "k-shaped recovery" that benefits high-income earners while lower-income cohorts struggle with persistent inflation.

RBC Capital Markets has named Loblaw Companies Limited (TSX:L) as its overall best idea, arguing the retail giant is exceptionally well-positioned to capitalize on evolving value trends, closely followed by Dollarama Inc (TSX:DOL) as the firm’s top quality growth pick.

The Two-Tiered Economy: Wealthy vs. Struggling

RBC’s 2026 Canadian Consumer Outlook hinges on the reality that spending growth will be modest, driven by a consumer who, despite solid overall household balance sheets (notably among wealthier groups), is prioritizing thrift.

While higher-income households see improved balance sheets thanks to easing mortgage renewal headwinds and strong financial markets, lower-income groups are dedicating a rising proportion of their budgets to essentials like food and shelter.

“Our positioning for 2026 is broadly consistent with the dominant post-pandemic theme: against the backdrop of muted and value-oriented consumer spending, our primary focus remains on secular winners with sustainable, ratable growth,” the report states.

This environment reinforces five key themes shaping the retail and consumer sector:

1. Value is Paramount: Financial pressures necessitate that all income levels prioritize value, benefiting retailers with strong value propositions and private-label penetration.

2. Inflationary Trade-Downs: Elevated costs in essentials drive ongoing consumer "trade-down" in channels and categories, maintaining rational but high promotional intensity.

3. Flight to Quality: Investors are shunning deep value, instead favoring quality and momentum in structural winners that capture a larger share of the consumer wallet.

4. Brand Trust: Social-driven interactions and strong brand communities are becoming critical "trust agents," driving spending allocation, particularly in discretionary categories like beauty and apparel.

5. AI as a Revenue Stream: Companies leveraging AI and large data pools for hyper-personalized experiences and retail media are unlocking new revenue streams and competitive advantages.

Top Stock Picks 

RBC has narrowed its best ideas list, focusing on companies that can thrive in a value-conscious setting or that offer predictable, high-quality growth:

• Overall Best Idea: Loblaw - As a dominant retailer and clear leader in food (specifically discount and private label) and pharmacy, Loblaw is "exceptionally well-positioned to capitalize on current and evolving trends."

• Best Quality Growth: Dollarama - RBC believes Dollarama is uniquely positioned to continue gaining share of wallet. The firm notes its valuation should stabilize toward the high end of its long-term range as investors seek "refuge in ratable, predictable, and sustainable growth stories."

• Best Large-Cap Re-rating: Alimentation Couche Tard Inc (TSX:ATD) - The fuel and convenience store giant is cited as one of the few large-cap laggards with a compelling valuation. RBC sees recent KPI improvements as a "precursor to higher investor conviction" and potential re-rating, noting the company’s significant balance sheet capacity for growth.

• Best Mid-Cap/Discretionary Idea: Aritzia Inc (TSX:ATZ) - Despite the cautious discretionary environment, Aritzia is highlighted for its significant momentum and runway in the U.S., with accelerated growth expected post-Fiscal 2026.

In the small- to mid-cap space, Pet Valu Holdings Ltd (TSX:PET) is noted as a strong self-help and potential re-rating idea, underpinned by sector-leading Return on Invested Capital (ROIC) and Free Cash Flow (FCF) conversion.

The report concludes that while a gradual improvement in unemployment should support spending power, the bias remains toward value-seeking behavior, cementing the strategic advantage for retailers who dominate the essential and discount channels.

Investing.com -- Mining stocks are set to deliver another year of robust performance in 2026, according to Jefferies.

Supply constraints in key commodities, particularly copper and aluminum, combined with resilient demand and anticipated Federal Reserve rate cuts, are expected to drive earnings upgrades and share price appreciation across the sector.

Jefferies highlights several top mining companies positioned to benefit from these favorable market conditions:

Freeport-McMoRan: Expected to lead the pack in 2026 as the company recovers production at its Grasberg mine, reversing its second-half 2025 share price underperformance. The company stands to benefit significantly from supply constraints in copper and the positive impact of potential Fed rate cuts.

In recent developments, Freeport-McMoRan’s board of directors declared a quarterly cash dividend of $0.15 per share on its common stock.

Glencore: Operational improvements are anticipated to boost Glencore’s performance in 2026. The company’s large and attractive portfolio of copper projects positions it well for potential M&A activities. Jefferies notes that a more accommodative Fed policy could lead to a weaker dollar and slightly higher inflation – both tailwinds for commodities like copper, aluminum, and coal.

Glencore also received a rating downgrade from BMO Capital Markets, which moved the company to ’Market Perform’ from ’Outperform’ and set a new price target.

Anglo American: Multiple catalysts are on the horizon as Anglo exits its positions in De Beers, metallurgical coal, and nickel ahead of its planned merger with Teck Resources. The company is well-positioned to capitalize on widening deficits in copper and aluminum markets, which Jefferies predicts will drive price increases in these commodities.

Anglo American announced that it has rejected a £31.1 billion takeover proposal from BHP Group, with its board stating the offer significantly undervalues the company.

Alcoa: Expected to benefit from operational upside and improving free cash flow, leading to further deleveraging and eventual capital returns to shareholders. Rising power costs are anticipated to create cost-push inflation, particularly in aluminum, providing additional tailwinds for Alcoa.

For its first quarter, Alcoa reported revenue of $2.6 billion and an adjusted loss of $0.81 per share, while also providing its full-year outlook for alumina and aluminum shipments.

While Chinese demand may remain weak, experts do not anticipate a major downturn. Meanwhile, U.S. demand for copper, aluminum, and coal could significantly improve due to strengthening electricity markets and potential capital expenditure increases to expand the power grid.

There could be earnings upgrade cycle for the sector in 2026, though this may be partially offset by increased capital expenditures as mining companies pivot toward growth investments. Despite this potential headwind, Jefferies remains bullish on mining stocks, expecting share prices for most companies in their coverage to rise over the next year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com - Canada’s main stock exchange was higher on Tuesday, as investors geared up for a slate of key central bank decisions in the U.S. and Canada this week.

By 12.01 ET, the S&P/TSX 60 index standard futures contract had moved up by 9.3 points, or 0.51%.

The {{24441|S&P/TSX composite index} was up 187 or 0.6% at 31,357.02

On Monday index ended lower by 0.45% at 31,169.97, retreating from a record high posted on Thursday.

Still, the TSX remains up by 25% so far this year, and is on pace to log its best year since 2009.

On tap this week is a major interest rate decision from the Bank of Canada, with policymakers anticipated to keep rates on hold due to stronger-than-expected jobs figures.

U.S. stocks higher

U.S. stocks were marginally higher amid caution before the start of the Fed’s final two-day meeting for the year, which is likely to drive sentiment into the new year.

The Dow Jones Industrial Average gained 115 points, or 0.2%, and the S&P 500 index rose 4 points, or 0.1%, while the NASDAQ Composite slipped 20 points, or 0.1%.

The main averages on Wall Street slipped in the preceding session, weighed down by a climb in Treasury yields, in a sign that caution may be prevailing ahead of the Fed’s upcoming announcement on Wednesday.

Fed rate cut looms

Attention is firmly on the start of the Fed’s latest two-day policy meeting, which investors are expecting will end with a cut to U.S. interest rates on Wednesday.

Bets on a 25-basis point reduction by the U.S. central bank have increased as economic data has pointed to an American jobs market under pressure and stable -- albeit elevated -- inflation.

The chances of an easing from Fed’s current target rate of 3.75%-4% now stand at roughly 89%, CME FedWatch has shown.

Still, with some policymakers recently flagging concerns around unveiling a third cut since September during a time when fresh economic data has been scarce because of a record-long government shutdown, this could prove to be one of the most contentious decision in years.

"There are now high expectations of a ’hawkish cut’ at Wednesday evening’s FOMC decision," said analysts at ING, in a note.

The central bank’s outlook for the U.S. economy going forward will also be closely watched, especially amid heightened uncertainty over the world’s largest economy.

Nvidia, Warner Bros Discovery in spotlight

There are a few corporate earnings to digest Tuesday, including from AutoZone (NYSE:AZO), Campbell’s (NASDAQ:CPB), AeroVironment (NASDAQ:AVAV) and Cracker Barrel Old Country Store (NASDAQ:CBRL).

However, most eyes are likely to be on Nvidia (NASDAQ:NVDA) after President Donald Trump stated, via a Truth Social post, that he will allow the company to sell its H200 AI chips to approved customers in China and other countries, albeit with a 25% tariff and with restrictions to ensure U.S. national security.

Trump said he had informed Chinese President Xi Jinping of his decision, to which Xi “responded positively.”

Nvidia’s H200 chip was unveiled in 2023 as the successor to the company’s H100 chip, and is estimated to be about six times more powerful than the H20, the most advanced AI chip that Nvidia is currently allowed to sell to China.

Nvidia chips are widely used by Chinese companies in AI development, with Trump’s Monday announcement presenting a path for higher chip sales for the world’s most valuable company.

Additionally, Warner Bros Discovery (NASDAQ:WBD) has another suitor, as just days after streaming titan Netflix (NASDAQ:NFLX) was named the winner of a bidding war for the studio, Paramount Skydance (NASDAQ:PSKY) said it had launched a hostile bid worth $108.4 billion.

The amount would surpass the $72 billion equity deal Netflix had secure for Warner’s television, film studios and streaming assets, and notably, Paramount’s rival bid would be for all of Warner, including its cable television properties.

Crude stable with Ukraine talks in focus

Oil prices stabilized Tuesday after the previous session’s weakness, as traders maintain a watchful look at the peace talks to end Russia’s war in Ukraine.

Brent futures climbed 0.4% to $62.75 a barrel, and U.S. West Texas Intermediate crude futures rose 0.5% to $59.15 a barrel.

Both contracts slipped 2% on Monday after Iraq’s move to restore production at the West Qurna-2 oilfield, a site representing a meaningful share of national exports.

Ukraine has signaled it will present a revised peace proposal to the U.S. after talks in London between President Volodymyr Zelenskiy and leaders of France, Germany, and Britain.

The prospect of progress toward a negotiated settlement could remove part of the geopolitical risk premium embedded in crude prices.

Gold steadies

Gold prices advanced, as metal markets hunkered down before the Fed meeting.

The yellow metal has logged some weakness so far in December, but was sitting on four straight months of outsized gains on cheer over lower U.S. interest rates. Broader metal prices were also mostly flat on Tuesday, while silver hovered near record highs after sharp gains in the past week.

Spot gold moved up 0.3% to $4,201.65 an ounce, while gold futures for February gained slightly to $4,231.10/oz.

Investing.com – U.K. stocks were lower after the close on Tuesday, as losses in the Fixed Line Telecommunications, Beverage and General Retailers sectors led shares lower.

At the close in London, the Investing.com United Kingdom 100 declined 0.04%.

The best performers of the session on the Investing.com United Kingdom 100 were WPP PLC (LON:WPP), which rose 6.27% or 18.70 points to trade at 317.20 at the close. Meanwhile, Unilever PLC (LON:ULVR) added 3.56% or 166.50 points to end at 4,846.50 and Fresnillo PLC (LON:FRES) was up 2.60% or 70.00 points to 2,762.00 in late trade.

The worst performers of the session were Diageo PLC (LON:DGE), which fell 2.55% or 42.00 points to trade at 1,602.50 at the close. GSK plc (LON:GSK) declined 2.06% or 37.50 points to end at 1,783.00 and Next PLC (LON:NXT) was down 1.94% or 270.00 points to 13,665.00.

Falling stocks outnumbered advancing ones on the London Stock Exchange by 947 to 826 and 542 ended unchanged.

Shares in Diageo PLC (LON:DGE) fell to 5-year lows; losing 2.55% or 42.00 to 1,602.50.

Gold Futures for February delivery was up 0.62% or 26.05 to $4,243.75 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in January fell 1.10% or 0.65 to hit $58.23 a barrel, while the February Brent oil contract fell 0.91% or 0.57 to trade at $61.92 a barrel.

GBP/USD was unchanged 0.07% to 1.33, while EUR/GBP unchanged 0.06% to 0.87.

The US Dollar Index Futures was up 0.08% at 99.14.

Investing.com -- RBC Capital Markets upgraded RPM International to outperform, saying the stock has likely found a floor and stands to benefit from infrastructure demand, stepped-up sales investments and a cheaper valuation after a pullback.

Weak DIY trends have weighed on sentiment, but RPM’s exposure to non-residential construction should support growth ahead of coatings peers.

It estimates more than 20% of the company’s business ties to infrastructure through its performance and construction units, slightly above major paint makers that are more dependent on consumer-facing markets. Forecasts from the American Institute of Architects point to steady gains in commercial spending in 2025 and 2026, including data centers, offices and institutional projects.

RBC said RPM has been investing in sales staff and advertising to win larger accounts, which has dampened near-term margins.

The firm highlighted an extra $5.3 million in employee spending and $3.2 million in advertising in the latest quarter. It cut its second quarter EBITDA and EPS estimates to $315 million and $1.42 to reflect about $10 million of growth-related SG&A, but raised its 2027 forecasts on expectations that stronger construction activity and the company’s commercial push will support results.

The firm said M&A will remain important for RPM’s growth, noting a mix of inorganic and organic contributions across its consumer, performance and construction segments.

With leverage at about 2 times EBITDA, RBC said the company has room for continued bolt-on deals. It expects the stock’s multiple to recover as organic growth improves and pointed to a current valuation of 12.2x and 11.4x FY26 and FY27 EBITDA, below its long-term range and in line with coatings peers.

RBC lifted its price target to $132 from $121 and said RPM’s roughly 10% slide since its first quarter results creates an entry point as infrastructure demand, SG&A leverage and capital deployment support a recovery through 2026 and 2027.

Investing.com - European stocks traded in a mixed fashion on Tuesday, with global investors keeping a wary eye on the start of the U.S. Federal Reserve’s two-day policy meeting later in the session.

The DAX index in Germany climbed 0.5% and the CAC 40 in France fell 0.7%, while the FTSE 100 in the U.K. was flat. 

Fed starts two-day policy meeting  

Policymakers at the U.S. central bank start their discussion about monetary policy later in the session, and are widely expected to authorise a cut in interest rates on Wednesday.

Given that this reduction is broadly priced in, the main focus is likely to be on what Fed chair Jerome Powell signals in terms of more easing next year.

Markets are predicting 77 basis points of easing through the end of 2026, meaning two more cuts after December remain in the price.

“The Fed is widely expected to cut rates on Wednesday,” said analysts at Vital Knowledge, “but the forward guidance that day could pivot in a hawkish direction. In aggregate, monetary policy globally is shifting out of an easing phase with the Fed set to go on pause for (at least) the first few meetings of 2026.”

The move will set the scene for central banks in Europe, with the Swiss National Bank set to deliver its own policy update on Thursday. The Bank of England and European Central Bank follow next week, along with Norway’s Norges Bank and Sweden’s Riksbank.

Earlier Tuesday the Reserve Bank of Australia left interest rates unchanged while adopting a hawkish note as it grapples with a resurgence in domestic inflation.

German exports rose in October

German exports rose slightly, by 0.1%, in October compared with the previous month, data from the federal statistics office showed on Tuesday.

The result compared with a forecast of a 0.5% decrease.

Thyssenkrupp returns to profit in Q4

In the European corporate sector, Thyssenkrupp (ETR:TKAG) reported a profit in its fourth quarter, compared to prior year’s loss, marking a return to profit after a loss a year earlier.

However, the German industrial and technology group has still projected a net loss and lower sales in 2026, noting that “the future development of the global economy is still uncertain.” 

Elsewhere, Swiss pharmaceutical company Novartis (SIX:NOVN) has entered into a partnership with Relation Therapeutics, potentially worth up to $1.7 billion, to accelerate the discovery of drug targets for allergic diseases, Bloomberg reported.

Renault (EPA:RENA) has entered a strategic partnership with Ford (NYSE:F) aimed at developing affordable EVs, which are expected to become available starting in 2028.

Crude slips further

Oil prices slipped lower Tuesday, continuing the previous session’s weakness as traders maintain a watchful look at the peace talks to end Russia’s war in Ukraine.

Brent futures dropped 0.9% to $61.94 a barrel, and U.S. West Texas Intermediate crude futures fell 1.1% to $58.25 a barrel.

Both contracts slipped 2% on Monday after Iraq’s move to restore production at the West Qurna-2 oilfield, a site representing a meaningful share of national exports.

Ukraine has signaled it will present a revised peace proposal to the U.S. after talks in London between President Volodymyr Zelenskiy and leaders of France, Germany, and Britain.

The prospect of progress toward a negotiated settlement could remove part of the geopolitical risk premium embedded in crude prices.