Key Takeaways
- Chinese President Xi Jinping met with German Chancellor Friedrich Merz, calling for the two nations to be "reliable partners" in innovation and Artificial Intelligence.
- Lowe's (LOW) reported Q4 sales of $20.58 billion, beating the $20.34 billion estimate, while posting a 1.3% increase in comparable sales.
- Bank of Montreal (BMO) delivered a strong Q1 beat with adjusted EPS of CAD 3.48, significantly higher than the CAD 3.22 analyst forecast.
- Xi emphasized the need to safeguard global supply chain stability and urged Germany to maintain an "objective" and positive China policy.
- BMO raised its quarterly dividend by 5% to CAD 1.67, despite setting aside CAD 746 million for credit loss provisions.
Xi and Merz Focus on Innovation and AI Cooperation
Chinese President Xi Jinping held high-level talks with German Chancellor Friedrich Merz in Beijing on Wednesday, emphasizing a shift toward pragmatic economic engagement. According to state broadcaster CCTV, Xi urged Germany to view China’s development "objectively" and requested that Berlin uphold a positive China policy to ensure long-term stability.
The meeting highlighted innovation and Artificial Intelligence as critical pillars for future cooperation. Xi noted that both nations should act as "defenders of free trade" and work together to safeguard the stability of global supply chains. Analysts suggest the visit, which included a delegation of 30 senior German executives, signals a desire to stabilize trade relations after China reclaimed its position as Germany's top trading partner in 2025.
Lowe's Beats Estimates Despite Net Income Dip
Lowe's (LOW) outperformed Wall Street expectations for its fiscal fourth quarter, reporting adjusted EPS of $1.98 against the $1.94 anticipated by analysts. The home improvement retailer generated $20.584 billion in revenue, a 10.9% increase year-over-year, driven by resilient demand from professional contractors and a 1.3% rise in comparable store sales.
Despite the revenue beat, the company’s GAAP net income fell to $999 million ($1.78 per share), down from $1.125 billion in the prior year. For the full year 2026, Lowe's issued guidance projecting total sales between $92 billion and $94 billion, with adjusted EPS ranging from $12.25 to $12.75. The outlook reflects a cautious but steady growth trajectory as the retailer navigates a selective consumer spending environment.
BMO Delivers Strong Q1 Results Amid Credit Caution
Bank of Montreal (BMO) started the fiscal year with a significant earnings beat, posting adjusted net income of CAD 2.55 billion. The bank's adjusted EPS of CAD 3.48 comfortably cleared the CAD 3.22 consensus estimate. BMO’s performance was bolstered by a 12.4% adjusted ROE, though its CET1 capital ratio of 13.1% came in slightly below the 13.6% target.
The bank continues to monitor credit quality closely, reporting provisions for credit losses (PCL) of CAD 746 million for the quarter. To signal confidence in its diversified business model, BMO announced a 5% dividend hike, bringing the quarterly payout to CAD 1.67 per share. Investors remain focused on the bank's ability to balance rising provisions against strong fee-based revenue in its North American wealth and capital markets divisions.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.