Connect with us

Finance

Dow futures plunge: What will a struggling market discover on Columbus Day?

Avatar

Published

on

Dow futures fell Sunday evening, along with S&P 500 and Nasdaq futures. The stock market opens on Monday, but bond trading is closed for Columbus Day.




X



The stock market’s bull run began last week, with big early gains for the Dow Jones and other major indices. But as hopes about the Fed’s pivot once again faded, Treasury yields rebounded and stocks tumbled. Together with warnings of Advanced Micro Devices (AMD) And the CVS Health (CVS), the major indexes wiped out most of their gains by Friday’s close.

While the market rally attempt has not ended, the Dow Jones, S&P 500 and Nasdaq indices are back near bear market lows. Investors must be very careful.

Advertisement

vertex stock, Neurobiological Sciences (NBIX) And the Eli Lilly (LLY) are traded around points of purchase. Stock NBIX and Vertex Pharmaceuticals (VRTX) is on IBD Leaderboard.

Tesla (TSLA), Energy Enphase (ENPH) And the on semiconductors (on me), three stocks that were close to buying points, suffered big selloffs. TSLA shares sold off Monday with disappointing deliveries, then continued to slide. Enphase stock flashed briefly with a strong buy signal on Tuesday, and then abruptly declined on Wednesday. ON stock closed above the trend line entrance on Thursday, but fell on Friday amid AMD chip selling.

Megacaps do not help. Microsoft Stock, Google Parent the alphabet (The Google) And the Amazon.com (AMZN), all of which are just below the 21-day lines on Thursday, fell sharply on Friday, returning towards a bear market or short-term lows. apple (AAPL), which never reached its 21-day low, slipped towards its short-term lows.

Microsoft (MSFT) and Google Inventory is running Long-term leaders of IBD. ON stock is in defect 50. anemy, Vertex Pharmaceuticals (VRTX) and ENPH stock on file IBD Big Cap 20. It was Vertex on Friday IBD stock today.

Dow jones futures contracts today

Dow Jones futures are down 0.6% against fair value. S&P 500 futures were down 0.7% and Nasdaq 100 futures were down 0.7%.

Advertisement

US bond markets will be closed Monday is relative to Columbus Day, so stocks won’t follow suit with Treasury yields.

Remember to work overnight in Dow Jones futures contracts and elsewhere that does not necessarily translate into actual circulation in the next regular session Stock market session.


Join IBD experts as they analyze actionable stock market actionable shares on IBD Live


stock market rise

The stock market’s bullish attempt got off to a strong start, but on Friday indices closed near lower lows.

The Dow Jones Industrial Average rose 2% last week stock market trading. The S&P 500 rose 1.5%. The Nasdaq rose 0.7% after falling 3.8% on Friday. Small cap Russell 2000 rose 2.2%.

Advertisement

Apple shares rose 1.4% during the week, but fell 3.7% on Friday. Microsoft posted a weekly gain of 0.6%, but fell 5.1% on Friday in AMD’s PC demand warning. Google and Amazon shares rose 3.2% and 1.4% respectively, trimming their strong weekly gains on Friday as well.

The 10-year Treasury yield rose for the 10th consecutive week, up 8 basis points to 3.88%. That’s after dropping as low as 3.56% on Tuesday, to test the 21-day streak. The 10-year Treasury yield is approaching a 12-year high around 4% set in late September.

The US dollar rose after its sharp losses to achieve modest weekly gains.

US crude oil futures rose 16.5% to $92.64 a barrel, up all five days. A cut in the OPEC+ production quota of 2 million barrels per day boosted the gains.


Time to Market with IBD’s ETF Market Strategy

Advertisement

ETFs

between the Best ETFsThe Innovator IBD 50 ETF (fifty) rose 1.7% last week, while the Innovator IBD Breakout Opportunities ETF (fit) gained 1.2%. iShares Expanded Technology and Software Fund (ETF)IGV) is up 2.6%, with MSFT stock holding a massive lead. VanEck Vectors Semiconductor Corporation (SMH) by 1.9%, but fell sharply on Friday after AMD’s warning. AMD is a big SMH stock with a prominent On Semiconductor component.

Shares reflect more speculative stories, the ARK Innovation ETF (see you) down 0.6% last week and the ARK Genomics ETF (ARKG) is down 0.15% – after both fell more than 6% on Friday. Tesla stock remains a major ownership across Ark Invest’s ETFs.

SPDR S&P Metals & Mining ETFs (XME) jumped 7.3% last week. US Global Gates Foundation (ETF)Planes) rose 3.7%. SPDR Specific Energy Fund (SPDR ETF)XLE) rose by 13.6%. SPDR Healthcare Sector Selection Fund (XLV) rose 1.25% with LLY stock owning a significant stake.


Top 5 Chinese stocks to watch right now


Tesla Stock

Shares fell 16% last week to 223.07 after recording Tesla deliveries did not live up to the number of views in the third quarter Amid Chinese demand concerns. Elon Musk has indicated that he will go ahead with Twitter (TWTR) the acquisition, reviving fears that he would sell more TSLA shares to fund the deal. Musk promoting the start of Tesla Semi production failed to provide an elevator on Friday. Shares are approaching their late-May low of 206.84.

Advertisement

Tesla China hit a record 83,135 cars in September, according to industry data. On Tuesday, investors will learn how many products were sold in China versus exports.

Market Rise Analysis

The stock market movement last week was almost a textbook. Major indexes, at bear market lows, rebounded strongly from severe oversold conditions on Monday and Tuesday. But the stock market’s attempt to rally quickly hit resistance at the 21-day line – while Treasury yields and the dollar bounced back. Selling intensified on Friday with the strong jobs report.

The market rally attempt is still valid until the major indexes break their recent lows. But the Dow, the S&P 500 and the Nasdaq are not far from doing so.

a Follow-up day It could come at any time to confirm the upside of the market. But investors should remain cautious, especially if the indices put the FTD below their 21-day lines. Watching ahead of Thursday’s CPI also carries additional risks.

A new bear market leg?

Meanwhile, the risks are high that a bear market will break.

Advertisement

The market’s rebound came amid renewed hopes of a slowdown in interest rate hikes by the Federal Reserve. Declining job opportunities and a sluggish rate increase in Australia have only reinforced this situation. But Fed officials insist they won’t back down, while the jobs report was very hot. Ultimately, last week the already high odds of a straight 75 basis point rate hike in November were boosted. Markets are close to holding at least 50 basis points in December – with a small but increasing chance of 75 basis points.

Earnings season can be a minefield. AMD and CVS followed up with several other high-profile warnings, as earnings season kicks in. Markets are still not fully priced in bad news: AMD and CVS stock fell more than 10% on Friday.

Main sectors

Energy stocks rose as crude oil prices rose. Much of it seems to be stretched.

Higher oil prices could be bad news for the broader market. Rising gas prices complicate the Fed’s job of curbing inflation. Gas prices have really jumped, especially in California, due to various refining issues.

Some biotech and drug names still do well, somewhat insulated from economic concerns. But can they make much headway if the broader market heads to new lows?

Advertisement

Meanwhile, some of the technical and medical product names that had been flashing buy signals at various points last week sold out later. Some held up reasonably well, while others made big sell-offs, including shares of ENPH and On Semiconductor. Tesla stock, which until a week ago was reasonably close to an entry point, has fallen toward its 2022 lows.

Shares of Apple, Microsoft and other tech giants do not lead the downside, but they do support the major indicators.


Tesla vs. BYD: Which EV giant is the best one to buy?


What are you doing now

Arguments about being an all or all cash remained strong even at last week’s highs, and are even stronger now as the market’s bullish attempt has faltered.

If you’ve bought some shares recently – apart from the energy sector and opted for pharmaceuticals – you may have to cut back on them already. Even if you are only taking demo positions, do not let the losses increase. If you have gains, you may want to lock in some of that.

Advertisement

Keep working on your watchlists and stay connected. An attempt to rally in the market could still come to life, which could lead to buy signals for many stocks. So focus on the stocks that are created. But also keep a wider list of stocks appear relative strengthEven if their schemes need repair work.

Read The Big Picture Every day to keep up with the trend of the market, stocks and leading sectors.

Please follow Ed Carson on Twitter at Tweet embed For stock market updates and more.

You may also like:

Get the next winning stocks with MarketSmith

Advertisement

Do you want to get quick profits and avoid big losses? Try SwingTrader

Best growth stocks to buy and watch

IBD Digital: Unlock IBD Premium Stock Listings, Tools & Analytics Today



Source link

Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published.

Finance

Microsoft is ready to fight for the $69 billion Activision deal

Avatar

Published

on

(Bloomberg) — Microsoft is ready to fight over its $69 billion acquisition of Activision Blizzard Inc. If sued, the US Federal Trade Commission seeks to block the deal, according to a person familiar with the matter.

Most Read from Bloomberg

The Xbox maker has not been in talks with the FTC about remedies or waivers intended to approve the deal, said the person, who asked not to be identified discussing a confidential matter. The person added that FTC staff are wrapping up their investigation and are expected to make a recommendation soon. The FTC commissioners will then vote on whether to file a case.

In the event that the FTC attempts to block the case, Microsoft is preparing to challenge that decision in court, said the person, who requested anonymity speaking about the internal strategy. Jennifer Rhee, an antitrust analyst at Bloomberg Intelligence, said it wouldn’t surprise her if the FTC filed a lawsuit seeking to block the deal, but noted that a court battle would be hard for its enforcers to win and Microsoft could prevail — though the legal battle could stretch. after the deal’s expiry date. Microsoft said it expects to close the deal by June 30.

Advertisement

Another option for Microsoft would be to abandon the deal in the face of a challenge from the Federal Trade Commission. That’s what the company did in 1995 when the US government sued to block its acquisition of Intuit Inc. to manufacture accounting software, as Microsoft said it did not want to face a long legal battle.

Microsoft’s best chance of winning approval to buy Activision is to convince the Biden administration to accept a settlement in which it promises it will not withhold its popular titles from competitors.

But Biden’s antitrust enforcers aren’t fond of such agreements — especially after the Ticketmaster bombing this month brought to light a failed 2010 Justice Department settlement with Live Nation Entertainment Inc.

The FTC takes a tough approach to mergers, especially when it comes to technology and digital markets, but has not indicated whether it plans to sue to block the deal.

Advertisement

In July, the agency filed a lawsuit to block Meta Platforms Inc. From the purchase of the virtual reality application Fitness Inside, claiming that the deal can eliminate competition in a small number of markets, referred to as “emerging competition”.

Microsoft and the Federal Trade Commission declined to comment. Politico reported last week that the Federal Trade Commission is likely to challenge the deal.

The US is one of at least three jurisdictions in which regulators have raised questions about the mega deal, which would dramatically change the landscape of video games and put Microsoft in third place in the global gaming market behind Tencent Holdings Ltd. and Sony Group Corp.

European and UK antitrust regulators have raised questions about whether the popular Call of Duty game franchise will still be available to gamers on Sony’s PlayStation console and whether the merger will allow Microsoft to take a dominant role in the burgeoning but still small market for cloud gaming services.

Microsoft has offered Sony a deal whereby Call of Duty games will be available on PlayStation for ten years, though the companies will need to put in place financial terms to the agreement, the person said.

Advertisement

That person said the software giant advised regulators of these discussions, but did not submit a formal remedy proposal because the review process had not progressed to that stage.

It doesn’t make financial or strategic sense for Microsoft to keep the best-selling PlayStation game franchise because more copies of games are sold on PlayStation than on Xbox and because such a move would anger gamers in a way that could have negative implications for Microsoft. In fact, the acquisition wouldn’t be financially viable for Microsoft if it cut Call of Duty to PlayStation, the person said.

Given the various stages of various investigations around the world, Microsoft will likely discuss this move first with the European Commission, which has set March 23 as the deadline for completing its in-depth review of the deal.

The person said Microsoft hopes the remedies it provides to the European Union will be sufficient globally. However, UK regulators will likely want additional steps from the company.

The UK’s Competition and Markets Authority is currently under an in-depth investigation of the deal after an initial investigation found concerns in game consoles, multi-game subscription services and cloud gaming marketplaces.

Advertisement

The agency said in an October document outlining the scope of its investigation that it was concerned that the deal could allow Microsoft to gain massive market power that would allow it to cut out competitors such as Sony. Although Microsoft promised it would not do so because of reputational damage to Xbox or Call of Duty, the watchdog said it had not identified “convincing evidence” to believe the statements.

Scrutiny of the dominance of big tech companies by the UK agency has intensified since it gained new powers post-Brexit.

Microsoft and the CMA will appear at a key party hearing in mid-December, part of the UK merger process that will allow them to segment and test the parties’ arguments. The agency is expected to make an interim decision by January, and the deadline for a full decision is March.

— With assistance from Emily Birnbaum and Stephanie Bodoni.

(Updates to add the previous acquisition challenge in the fourth paragraph.)

Advertisement

Most Read from Bloomberg Businessweek

© Bloomberg LP 2022

Source link

Advertisement
Continue Reading

Finance

ABB agrees to pay $315 million to settle coordinated African bribery investigation (NYSE:ABB)

Avatar

Published

on

J2R/iStock Editorial via Getty Images

ABB (New York Stock Exchange:ABB) She agreed to pay more than $315 million The US Department of Justice announced on Friday that it is ending a multinational investigation into the bribery of a high-ranking official of South Africa’s state-owned energy company Ascom.

ABB (ABB) bribed an Eskom official during 2014-2017 “in order to corruptly obtain classified information and win lucrative contracts,” the DOJ said.

Advertisement

The company’s subsidiaries also pleaded guilty to one count of conspiracy to violate anti-bribery provisions of the US Foreign Corrupt Practices Act.

The Justice Department said its decision was coordinated with prosecutors in South Africa and Switzerland, as well as the US Securities and Exchange Commission.

The company said in September it had set aside $325 million to cover costs related to the investigations surrounding the Kozel power plant in South Africa.

ABB’s (ABBQ3 results included above-average revenue and order growth, as well as the best margins seen in many years, but the next 12-18 months should be more challenging for reported revenue and order growth, Stephen Simpson writes in Post analysis on the search for alpha.

Source link

Advertisement

Continue Reading

Finance

The Swedish scientist behind the Alzheimer’s drug has big ambitions

Avatar

Published

on

As the Japanese pharmaceutical company Eisai presented data this week confirming that it had developed the first drug to slow cognitive decline in Alzheimer’s patients, the audience applauded at a conference in San Francisco.

Among those present was Lars Lanfelt, a little-known Swedish scientist invented The pioneering drug, known as lecanemab, would make a fortune if approved and successfully marketed.

BioArctic, the company he co-founded in 2003 with Pär Gellerfors, struck a licensing deal on monoclonal antibody therapy with Eisai in 2007, giving it hundreds of millions of dollars in milestone payments and royalties on lecanemab sales.

About 55 million people suffer from dementia worldwide and Alzheimer’s disease accounts for up to 70 percent of these cases, according to the World Health Organization.

Analysts predict that the drug could generate sales of up to $10 billion a year, a prospect that would turn BioArctic, as well as Eisai and its co-owner of the drug, US biotech Biogen.

Advertisement

“It’s nice to have money but that’s not what motivates me. It was the science and the opportunity to build a Swedish company,” the 73-year-old told the Financial Times.

“We want [BioArctic] To be a complete pharmaceutical company: this is our ambition.

Brain scan for Alzheimer’s disease © BSIP SA / Alamy

Shares in BioArctic, which has just 75 employees, have more than tripled in value since Eisai revealed in September that lecanemab slowed the rate of cognitive decline in early-stage Alzheimer’s patients by 27 percent.

The Stockholm-listed company is now worth nearly $2 billion and hiring quickly, with ambitions to sell the drug in the Nordic countries where it owns the rights to lecanemab in collaboration with Eisai.

Lecanemab could be approved in the US as early as January under the US Food and Drug Administration’s accelerated approval pathway. But significant hurdles remain, including satisfying doctors’ concerns about its safety and whether the clinical benefits justify the risks from side effects.

Advertisement

Investors also need to be convinced that Eisai will not repeat the mistakes of its partner Biogen, whose shares plunged last year after the failed launch of a similar Alzheimer’s drug called aducanemab that the Japanese group also helped develop.

Biogen initially priced the one-year Aducanemab treatment at $56,000 despite concerns among some health experts who cautioned there was no conclusive evidence of its benefits.

Analysts said this week’s presentation of comprehensive data on licanimab at the Alzheimer’s Clinical Trials Conference in San Francisco, along with the publication of a peer-reviewed article in the New England Journal of Medicine, was a positive development.

“Is it a cure? No. Are we there yet? No, but the data set is clean and shows clear benefit,” said Evan Segerman, an analyst at BMO Capital Markets.

“Based on this data, we are very confident in lecanemab’s approval and eventual reimbursement for the Centers for Medicare and Medicaid Services (CMS),” he said.

Advertisement
BioArctic’s lab and offices in Stockholm, Sweden, where early research into neurodegenerative diseases such as Alzheimer’s and Parkinson’s is carried out © BioArctic / Gustav Gräll

The decision by CMS, the US federal agency that administers national insurance plans, to limit insurance coverage for aducanemab to people undergoing clinical trials hurt the drug’s commercial prospects.

Despite the euphoria in San Francisco this week, some researchers and investors remain cautious about the prospects for lecanemab, a drug that targets sticky plaques called beta-amyloid that build up in the brain. They say the treatment produces only “moderate” clinical benefits compared to a placebo and can cause serious side effects including brain bleeding.

The Death cases Two of the patients treated on likanimab, who were also taking blood-thinning medications, also raised questions about whether large numbers of patients on anticoagulants could eventually be excluded from taking the treatment.

“I suspect that the lack of clear clinical efficacy will mean that licanimab will not be widely taken up in healthcare systems around the world,” said Robert Howard, professor of geriatric psychiatry at University College London.

Lanvelt disputes that assessment, arguing that a 27 percent reduction in the rate of cognitive decline is clinically significant and sufficient for the drug to be approved and released. He said the results of the experiment also confirmed a controversial theory known as the amyloid hypothesis, which states that Alzheimer’s disease is caused primarily by the buildup of plaques in the brain.

Advertisement

“It’s been shown that amyloid beta causes Alzheimer’s disease as much as HIV causes AIDS. I think it’s the same level of evidence,” he claims.

Many researchers disagree that amyloid beta is now proven to be the “primary cause” of Alzheimer’s disease, saying that it is a complex disease with many contributing factors.

“Amyloid beta probably contributes about 30 percent to overall disease, but there are many other disease proteins and other conditions that can increase the rate of decline,” said Dr. Keith Fossell, a UCLA professor of neuroscience. Angeles.

It was Lanvelt’s discovery in the early 1990s of a mutation in the gene responsible for beta-amyloid that helped establish a link between sticky plaques and Alzheimer’s disease. Nearly a decade later while working as a researcher at Karolinska Institutet — a Swedish medical body — he discovered another genetic mutation linked to beta-amyloid clusters called profibrils, the rod-like structures that are a key target for lecanemab.

Dubbed the ‘Arctic mutation’, it led to the discovery of the mAb158 monoclonal antibody, which became lecanemab.

Advertisement

said Lanfelt, who owns 33.5 percent of BioArctic stock but controls 49.3 percent of the biotech’s voting rights. He sold a small portion of his stake in October.

If likanimab turns out to be a commercial success, Lanfelt said, BioArctic will use the proceeds to develop drugs targeting Parkinson’s disease and other disorders of the central nervous system. Despite his age, he said he wants to continue working at BioArctic as long as he can contribute to research.

“You can’t change your lifestyle at this age,” Lanfelt said, adding that he would indulge himself in buying an electric car.


Source link

Advertisement
Continue Reading
Advertisement

Trending