Royalty Management stock rises after investment in blockchain traceability firm

Investing.com - Canada’s main stock index edged higher on Wednesday, as investors assessed a string of domestic bank earnings and hopes for U.S. interest rate reductions.

Get the latest updates and insights on the biggest market-moving stories by upgrading to InvestingPro - get 55% off today.

The S&P/TSX Composite index gained 150 points or 0.49% at 31,199.09.

Index dipped by 52.50 points, or 0.2%, on Tuesday, a second straight session retreating from an all-time peak on Friday.

Markets were pouring over upbeat returns from Bank of Nova Scotia, while shares of Laurentian Bank surged by 18.4% after Fairstone Bank said it would purchase the lender.

Shopify shares also ticked higher after the e-commerce group said merchants on its platform had notched record sales over the Black Friday and Cyber Monday sales events.

U.S. stocks mixed

U.S. stocks were mixed on Wednesday, as growing confidence in a Fed rate cut and a rebound in Bitcoin helped steady sentiment.

The Dow Jones Industrial Average traded 75 points, or 0.2%, higher, while the S&P 500 index slipped 5 points, or 0.1%, and the NASDAQ Composite fell 97 points, or 0.4%.

The main averages on Wall Street advanced in the prior session, shrugging off some risk-off sentiment at the onset of the trading week.

Rising Fed rate cut expectations

Investors were now turning much of their focus back to expectations for a Federal Reserve interest rate cut later this month.

Odds of that the U.S. central bank will bring down borrowing costs by a quarter of a percentage point at the end of its December 9-10 gathering have hovered around 87%, CME FedWatch has shown, reflecting widespread bets that policymakers will feel comfortable providing support to a sputtering labor market despite signs of sticky inflation.

On the economic front, attention is turning to Wednesday’s release of the private-sector payrolls report from ADP Research Institute, offering an early peek at the strength of the labour market.

Later, on Friday, the markets will get to see the delayed publication of the Personal Consumption Expenditures Price Index (PCE), the Fed’s preferred gauge of inflation, along with personal income and spending figures.

The PCE print could heavily influence expectations about the magnitude and timing of rate cuts.

Meanwhile, risk assets got a boost from a rebound in cryptocurrency markets. Bitcoin climbed back above the mid-$90,000 range after sharp losses earlier in the week, giving a lift to crypto-linked stocks and improving overall risk appetite among investors.

The rebound in crypto and tech names helped underpin broader gains on Wall Street.

Marvell to buy Celestial AI

Marvell Technology has confirmed a multi-billion deal to buy semiconductor startup Celestial AI, as the U.S. chipmaker looks to expand its compute capacity during an ongoing surge in demand driven by the artificial intelligence boom.

Crucially, the $3.25 billion transaction grants Marvell access to Celestial’s work on photonics, a process that harnesses light instead of electrical signals to establish connections between AI and memory chips. Meaningful revenue contributions from the Celestial acquisition are expected to materialize in the second half of Marvell’s fiscal 2028.

Elsewhere, the likes of Pure Storage (NYSE:PSTG), CrowdStrike Holdings (NASDAQ:CRWD) and Okta (NASDAQ:OKTA) will be in the spotlight after the companies reported earnings after the close Tuesday.

Crude prices surge

Oil prices rose as an immediate deal to end the war in Ukraine looked unlikely, leaving a persistent threat to supply in play.

Brent futures climbed 1.1% to $63.15 a barrel, and U.S. West Texas Intermediate crude futures rose 1.3% to $59.41 a barrel.

Russia and the U.S. did not come to an agreement on a possible peace deal for Ukraine after a lengthy meeting between Russia President Vladimir Putin and U.S. envoys Steve Witkoff and Jared Kushner late Tuesday.

Oil markets are awaiting the outcome of the talks to see if a deal could lead to the removal of sanctions on Russian companies that would free up restricted oil supply.

Rising U.S. inventories also added to the concerns about a crude surplus, after the American Petroleum Institute reported on Tuesday that crude stocks rose by 2.48 million barrels in the week ended November 28.

The U.S. Energy Information Administration will release official government stockpile data later on Wednesday.

Gold prices stabilize

Gold prices held largely steady on Wednesday, as investors waited for more U.S. economic data and next week’s Fed meeting.

Spot gold last traded flat at $4,206.72 an ounce. U.S. Gold Futures gained 0.4% to $4,237.15.

The yellow metal previously hit a six-week high of $4,264.29/oz earlier this week.

Investing.com -- A prosecution in Taiwan tied to leaked 2nm process information is unlikely to have a material impact on Tokyo Electron and may instead help clear a long-standing uncertainty around the stock, according to Bernstein analyst David Dai.

Taiwanese prosecutors on Oct. 2 announced charges against Tokyo Electron’s Taiwan unit under the National Security Act and Trade Secrets Act. Bernstein noted that the company could face “a fine of up to TW$120 million (US$3.8 million) if convicted.” 

Bernstein explained that the case stems from allegations that a former Tokyo Electron employee who had left TSMC conspired with two current TSMC engineers to steal advanced 2nm process data.

All three now face “7–14 year potential prison terms,” Bernstein’s Dai wrote.

Some investors worried about knock-on effects for Tokyo Electron’s financials, particularly after the company was missing from TSMC’s latest list of 2025 Outstanding Suppliers. But Dai said the charge was “milder than the worst case scenario.”

According to the firm, the indictment focuses solely on supervisory failings. Prosecutors reportedly stated that “apart from general and cautionary internal rules, the company lacked evidence of concrete preventive or managerial measures,” and therefore should bear corporate liability. 

Crucially, Bernstein stressed that “the indictment does not allege any organizational involvement” by Tokyo Electron or its Taiwan unit in directing or encouraging the theft.

Given the limited scope of the charge, Bernstein said it does not expect “any material financial impact,” noting that Tokyo Electron has already publicly stated the matter “has no impact on our financial results.” 

With the potential fine modest relative to the company’s scale, Bernstein argued that the development “is likely to resolve the information leak case and would remove a lingering overhang.”

The firm maintained an Outperform rating and JPY 39,400 price target on the stock.

Investing.com -- Target Hospitality Corp (NASDAQ:TH) stock rose 2.2% Wednesday after the company announced a multi-year contract to provide hospitality services for a power generation project in Northern Nevada.

The modular accommodations provider will construct and operate a facility supporting power infrastructure expansion essential for mining and data center development in the region. The 25-month contract, beginning in June 2026, is expected to generate approximately $35 million in revenue.

Target will deliver comprehensive services at the site, including premium culinary offerings and enhanced community amenities for up to 250 workers. The company plans to leverage its existing regional network capacity established earlier this year in connection with its Thacker Pass workforce hub contract.

The new project requires minimal capital investment of approximately $8 to $10 million, with construction expected to be completed by June 2026. This contract adds to Target’s growing Workforce Hospitality Solutions segment.

"We continue to make significant progress on our strategic initiatives, and including this award, Target has announced over $530 million of multi-year contracts in 2025," said Brad Archer, President and CEO of Target Hospitality.

The company noted that the contract highlights the increasing demand for power generation capacity to support large-scale industrial projects in remote areas, creating opportunities for its vertically integrated workforce accommodation services.

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

Investing.com -- PolyPid Ltd. (NASDAQ:PYPD) stock gained 3.4% on Wednesday after the company announced it received supportive feedback from the U.S. Food and Drug Administration regarding its New Drug Application for D-PLEX100, its lead product candidate for preventing surgical site infections in abdominal colorectal surgeries.

The late-stage biopharma company reported that the FDA agreed its existing clinical data package, including results from the Phase 3 SHIELD II trial, appears adequate to support NDA submission and review. Additionally, the FDA approved a rolling NDA review process, allowing PolyPid to submit the first completed sections in early 2026.

Following the FDA’s written response, PolyPid determined that its previously scheduled in-person meeting for December 3, 2025, is no longer necessary as the objectives of the pre-NDA meeting have been accomplished.

"We are pleased with the pre-NDA meeting feedback we received from the FDA, which confirmed agreement on the content and format for our planned NDA submission, and appreciate the agency’s collaborative engagement throughout this process," said Dikla Czaczkes Akselbrad, Chief Executive Officer of PolyPid.

The company noted that the FDA’s agreement on the adequacy of the clinical data package, combined with its Breakthrough Therapy designation, validates its regulatory strategy as it works to advance D-PLEX100 toward potential market approval.

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

Investing.com -- Susquehanna downgraded Pure Storage to Neutral from Positive, saying the company’s strong portfolio and recent execution are not enough to offset uncertainty around how quickly its early hyperscaler wins can translate into meaningful revenue scale.

The brokerage kept its $100 price target but said the investment case is constrained by limited visibility on growth rates.

Pure has shipped 2 exabytes to hyperscalers, but analysts said this remains small in a 460 exabyte enterprise SSD market and the path to expanding that footprint and related software revenue is unclear.

The firm retains an 8x EV to sales multiple on its fiscal 2027 forecasts, which assume about 15% free cash flow margins and 20% operating margins. They described the multiple as rich and noted that without clearer evidence of sustained growth, the stock offers little upside at current levels.

Pure delivered stronger than expected October quarter results, helped by enterprise spending and demand for Evergreen One and high performance storage.

Revenue rose 16% from a year earlier to $964 million, topping expectations. EPS of $0.58 also beat forecasts, with gross margin and operating margin above consensus. The company guided January quarter revenue to $1.02 billion to $1.04 billion, broadly in line with estimates.

Analysts highlighted strength across higher end products including DirectFlash, FlashBlade EXA for AI workloads, and Portworx licenses. Product revenue, which made up more than half of total sales in the quarter, rose 18% on the year with margins improving on a better mix.

Subscription revenue grew 14% and annual recurring revenue reached $1.84 billion. Remaining performance obligations increased to $2.9 billion. Pure added 258 new customers in the quarter and said adoption of its Fusion orchestration software has more than tripled since the start of the year.

The note said investors now need more clarity on the economics of hyperscaler deals, which Pure plans to discuss when it provides its fiscal 2027 outlook next quarter. Management will no longer provide detailed shipment data for hyperscaler customers.

Upside risks include faster scaling in hyperscaler deployments and stronger margins. Downside risks include stiffer competition in all flash arrays and slower share gains that pressure operating leverage.