Traders Market Weekly: The Meaning of Market Volatility (or Lack of) Risk

Viewing 15 posts - 16 through 30 (of 86 total)
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    Prometheus Biosciences to be acquired by Merck for $200.00 per share

    $RXDX 192.96 ▲ +78.94 (+69.24%)
    $MRK 115.05 ▼ -0.26 (-0.23%)

    $10.8 billion deal appears to be the largest dollar price of any company that is only out of a Phase 2 – CNBC

    Morgan Stanley analyst Terence Flynn who has an Equal Weight rating on Merck (MRK), argued that the transaction supports Merck’s (MRK) strategy to add external pipeline assets to its portfolio in the face of the upcoming patent cliff for its blockbuster cancer drug Keytruda.

    Wells Fargo’s Derek Archila thinks there is little regulatory risk from the views of the Federal Trade Commission to close the deal, given the lack of overlap between business areas. Archila, who has an Overweight rating on Prometheus (RXDX), expects the transaction to expand Merck’s (MRK) nascent inflammation and immunology ((I&I)) franchise.

    According to the analyst, the deal will have a positive read-through to other companies in the I&I space, such as Immunovant (IMVT), Morphic Holding (MORF), and Ventyx Biosciences (VTYX).

    Archila expects all those stocks to trade higher on the news and Argenx (ARGX) to come under pressure as Pfizer (PFE) and Merck (MRK), “two potential buyers with enough firepower to acquire ARGX, may be out of the mix.”

    RBC Capital Markets analyst Gregory Renza thinks the deal marks “both victory and validation” for RXDX’s ambitious but investigational precision-based approach to immunological conditions.

    Renza, who has an Outperform rating on RXDX, considers Merck (MRK) an “unexpected suitor” for the company and argues that its platform and lead candidate PRA023 will complement the cancer drugmaker’s drug portfolio.


    ^^^^ +1 @ Truman & Money Never sleeps for excellent insight for week ahead

    In a world turned upside down — We must also get TAXES filed … tomorrow is deadline
    H&R block helped us with a complex tax situation for our son – waving costs & noting he didn’t have to file
    who served in teaching English in South Korea for most of 2022 with very low income (like CARE for example)
    Still, got his return done for 2023 as he will get a little back from county schools as a teacher
    We’ve even had major printer problems that got solved at last minute – and thankful FED TAX season is over
    and will need to pay “AUNT VIRGINIA” by 1st of MAY (and got all that worked out also) 🙂


    Dow 33,987.18 100.71 0.30%
    S&P 500 4,151.32 13.68 0.33%
    Nasdaq 12,157.72 34.26 0.28%
    VIX 16.95 -0.12 -0.70%
    Gold 2,008.00 -7.80 -0.39%
    Oil 80.96 -1.56 -1.89%


    Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note.

    —Equity Markets—

    Japan’s Nikkei: +0.5%
    Hong Kong’s Hang Seng: -0.6%
    China’s Shanghai Composite: +0.2%
    India’s Sensex: -0.3%
    South Korea’s Kospi: -0.2%
    Australia’s ASX All Ordinaries: -0.3%


    The Reserve Bank of Australia released its latest policy Minutes, showing that the decision to pause rate hikes was a close one.


    China’s Q1 GDP 2.2% qtr/qtr, as expected (last 0.6%); 4.5% yr/yr (expected 4.0%; last 2.9%).
    March Retail Sales 10.6% yr/yr (expected 7.4%; last 3.5%),
    March Industrial Production 3.9% yr/yr (expected 4.0%; last 2.4%),
    March Fixed Asset Investment 5.1% (expected 5.7%; last 5.5%).
    March Unemployment Rate 5.3% (expected 5.5%; last 5.6%)

    TD Securities raised its forecast for China’s 2023 GDP growth to 6.0% from 5.3% after the release of Q1 growth figures.

    International Monetary Fund expects China to be the top contributor to global growth over the next five years.


    Bank of Japan Governor Ueda said that there is no current need to review the BoJ’s joint statement with the government from 2013.


    Major European indices trade in the green.

    -Equity Markets—

    STOXX Europe 600: +0.6%
    Germany’s DAX: +0.8%
    U.K.’s FTSE 100: +0.2%
    France’s CAC 40: +0.8%
    Italy’s FTSE MIB: +1.1%
    Spain’s IBEX 35: +0.6%


    Germany’s ZEW Economic Sentiment survey missed April expectations, but still noted that earnings expectations for banks and insurers have improved on a month-over-month basis.

    Germany’s April ZEW Economic Sentiment 4.1 (expected 15.3; last 13.0) and ZEW Current Conditions -32.5 (expected -40.0; last -46.5)

    Eurozone’s April ZEW Economic Sentiment 6.4 (expected 13.0; last 10.0)


    Corporate insolvencies in England and Wales were up 16% yr/yr in March.

    U.K.’s February Average Earnings Index + Bonus 5.9% yr/yr (expected 5.1%; last 5.9%) and February Unemployment Rate 3.8% (expected 3.7%; last 3.7%).
    February Three-month employment change 169,000 (expected 50,000; last 65,000).
    March Claimant Count change 28,200 (expected 10,200; last -18,800)


    European Commission President von der Leyen said that trade defense tools must be strengthened, including potential screening of outbound investments.

    Italy’s February trade surplus EUR2.108 bln (expected deficit of EUR3.23 bln; last deficit of EUR4.236 bln)


    Bank of America (BAC 30.73, +0.36, +1.2%): beats by $0.11, beats on revs
    Goldman Sachs (GS 326.50, -13.18, -3.9%): beats by $0.73, misses on revs


    Last night: J.B. Hunt Transport (JBHT 172.87, -3.78, -2.1%): misses by $0.14, misses on revs


    Johnson & Johnson (JNJ 166.70, +1.03, +0.6%): beats by $0.18, beats on revs; raises and guides FY23 EPS above consensus, revs above consensus; declared a 5.3% increase in the quarterly dividend, from $1.13/share to $1.19 per share

    Lockheed Martin (LMT 498.00, +8.36, +1.7%): beats by $0.55, reports revs in-line; reaffirms FY23 EPS guidance, revs guidance


    BELLUS Health (BLU 14.40, +7.14, +98.4%): to be acquired by GSK for ~ $2 billion, or $14.75 per share, in cash

Viewing 15 posts - 16 through 30 (of 86 total)
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