For a look at what is on tap this week, read my Globe and Mail column this morning.
Here are 5 things to know today:
Mood ring: Futures are higher this morning and gold is popping as investors look past banking fears and take comfort in easing trade tensions between the US and China. Talks are set for this week involving Treasury Secretary Scott Bessent and Vice Premier He Lifeng. Concerns about credit quality emerged last week after two borrowers went down and the financial intuitions that lent to them said they were defrauded. Strong earnings from regional banks not affected by the two borrowers are easing concerns that this is a widespread issue and there are more cockroaches. “We see current credit fears as overblown,” wrote Steven Alexopolous of TD Cowen. “We typically see these “fog of war” moments as the ones that create the strongest opportunities to drive alpha. Similar to the 2023 regional banking crisis, we see a situation forming with too many credit pessimists crowding one side of the boat,” said Alexoplous. He recommends buying the dip in Citizens Financial, Bank of New York Mellon, and Western Alliance.
Tough as steel: Cleveland Cliffs is soaring 8% after adjusted profit came in better than expected and the steel producer lowered its capital spending plans. Sales actually missed expectations but grew for the first time in seven quarters as the the Chair touted a recovery in demand for automotive grade steel thanks to tariffs that incentivize buying from American producers. The company said they’ve won new supply arrangements with all major automotive makers.
Screen time: Apple is up in the pre-market on enthusiasm over the iPhone upgrade cycle. Loop Capital is upgrading the stock to buy saying we are now at the front end of the long-anticipated adoption cycle. The price target goes to $316/share. . The excitement over the new iPhone cycle comes after data showed that the iPhone 17 outsold the iPhone 16 by 14% in the US and China in the first 10 days according to Counterpoint Research. Apple is near a record high but has not participated in the stock market rally despite being a Magnificent 7. The stock is barely up in 2025. Evercore said this is a good set up into earnings and added it to its tactical Outperform rankings. “We think AAPL is well positioned to report upside to Sep-qtr expectations later this month. Stronger iPhone demand and a clearer line of sight to double-digit Services growth present an attractive setup into the print,” wrote Evercore’s Amit Daryanani.
Pantsed: Gildan is catching a downgrde from Citi after a 30% gain this year. The plain clothing maker announced a deal to buy Hanesbrands in August for $4.5 billion, the stock is up 20% since then. “We believe the market is now pricing in a successful close to the deal, seamless integration, and synergies that are at least as much as what mgmt indicated ($200MM),” wrote Citi’s Paul Lejuez, “…While this still implies some upside versus current levels, we view the risk/reward as more balanced, justifying a Neutral rating.”
Anotha one: Cascades is getting a second upgrade to buy in less than a week. RBC is upgrading the stock and slapping a street-high $13/share price target. The stock has been a laggard, down 13% so far in 2025 due to weak demand for paper and packaging products. RBC says the company is gaining momentum and sees the ramping up of their facility in Virginia as a catalyst. In addition, the analyst says a a significant profitability improvement program underway. “We see the potential for attractive upside as these themes continue to play out (our 2026 EBITDA estimate is above consensus) and be recognized by investors, and are upgrading our rating to Outperform (from Sector Perform),” wrote Matthew McKellar.
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